This is a guest post by Dan Marshall of Oak View Law Group. Dan’s opinions do not necessarily reflect the opinions of Academy Success, but he does offer some pretty sound advice. Make sure to check out this recent article about habit change as well. The best advice in the world is nothing without knowing how to integrate it into your daily routine.
The importance of maintaining your personal finance is something that you’ve probably heard of a bit too often. You must’ve then felt like screaming out then that “how on earth am I supposed to maintain personal finance when I’m bogged down with such a lot of debt?”
Well, you’re right and it’s evidently true that debt load and debt payments are the major reasons why most people today find it difficult to handle their personal finance, so much so that sticking to a budget also seems practically impossible. This is why mate, you’ve got to understand that in spite of life being filled with setbacks, it’s extremely important that you get rid of all forms of personal and family indebtedness.
Common Issues Which Lead to Accumulation of Debt
Now, in your quest to set your personal finances right, it’s important that you identify what are the major economical issues that are keeping you from financial salvation. Even if you enroll into any of the available debt management programs, it’s still important that you do some ground work.
Dependency on credit cards – It’s pretty easy to use credit cards at the drop of a hat. Yes, it’s a fact that credit cards happen to be the easiest available resource for extra cash if you’re on a tight budget. However, when you’re already facing debt issues and trying to set your personal finances right, it’s important that you reduce your dependency on credit cards. This is essential because ultimately these credit cards might go on to become another huge source of debt which you definitely don’t want.
Hooked on to the limelight – Amongst all other addictions that are commonly known, there’s also the addiction of the limelight. Yes, you got that right! If you’re one who enjoys being the star of the party or hogging the limelight all by yourself when out socializing, then you’re definitely doing it to yourself and in turn your finances. Don’t think it’s too wise on your part to pay the bill of the whole gathering or regularly treat all your friends whenever you’re out.
Sure, it makes your friends feel good; but, tell you what, you’re not going to feel as good when your finances start sagging under the unnecessary exertion you’re exercising on it. You’ve got to learn to exercise a hell lot of self-control in this particular area if you really wish to avoid a financial disaster.
Lack of proper savings – See, the whole essence behind becoming debt free is to convert your spending habits into saving. Moreover, once you truly manage to become debt free, you’re obviously going to give your personal finance a lease of new life.
Undoubtedly this won’t be too easy as it’s a major shift in your practices, but this is how it ought to be else you’re done for. Hence, it’s all the more important that you follow a tight budget that’ll enable you to save more.
Aggressive remodeling – This is another habit that leads you on to your financial doomsday sooner than you could’ve imagined. You do like to live in a nice house and drive a car that works well, right? Fair enough! However, that doesn’t really mean that you overwork yourself into upgrading your residence at the drop of a hat for it really doesn’t make sense economically. Make home improvements only when required.
Not taking care of your health – In the wake of so many concerns, what you’re forgetting is obviously your own health. Minor health issues can add up to be a major one if you don’t address it at the right time. Hence, do take care of yourself always. A major health setback essentially translates into a major financial setback.
Keep in mind the 5 issues discussed above. If you address the above concerns right, then debt and personal finance won’t be a headache for you anymore.