Money has always been a top source of stress for most people. If not addressed, debt and worrying about money can lead to serious physical, emotional and even relationship problems.
How to solve money problems then? There are tons of financial advice that people probably already heard or read about. In fact, most of these advices are simply common sense yet one the greatest mysteries about life is that no one really follows them. It looks so easy to do but for most people, it is very difficult to follow.
Here are some of the common sense advices about money that people don’t really follow:
1. Spend Less Than You Earn
This rule is so simple. Just live within your means. Obviously, if you spend more than you earn, that will only spell, debt. Even a grade schooler knows that if you subtract more than you add, you will end up with a negative number. You need to have financial discipline; otherwise, it will be very hard to create wealth.
There are many ways to reduce your monthly expenses. If spending less is really not an option for you, then you need to look for ways to earn more money. It is as simple as that.
2. Understand How Credit Card Functions
Credit cards are very useful. With credit cards, you don’t always need to have cash. You can purchase anything without having to worry of paying them immediately. However, if you don’t have basic understanding of how it works, credit card can turn into your worst nightmare. Always remember that you are not using your own money when you purchase items using your credit card but rather your are borrowing the bank’s money.
Unless you know how to manage your credit cards, it is better for you to refrain from using your credit card altogether. Use credit cards only on emergencies. Buying because it is on sale even though you don’t really need it is not a valid definition of an emergency. Find out more if credit card is good or bad for you.
3. Automate your Savings
Pay-yourself-first has always been the initial advise that wealth managers will tell you as the first step towards building your wealth. Unfortunately, most people would rather spend or pay everyone else first before themselves. Savings always comes last. Usually, people save using whatever it is that is left (if there is any).
Remove the stress of not being able to save money by automating your savings.
The best strategy to avoid this scenario is to automate your savings. By regularly setting aside a fix amount through automatic savings, you will soon be able to build up your emergency fund.
4. Seek Help from Qualified Persons
If your financial woes are already big enough for you to handle on your own, then it is time to seek help from other people. If your problems are about money, ask a professional in financial planning to help you. If you cannot afford your own financial planner, then ask a friend who is an expert in handling money.
Don’t just ask any friend. That is the problem with most people. They normally seek advise from friends or relatives who are close to them. However, they fail to look at the fact that most of these people are also having financial problems of their own too.
Think of it this way, if you are in school and you are having problems with your Math subject, obviously, you will not ask your Filipino or Science teacher to help you. Instead, you will seek the help of your Math teacher or a fellow student who is good in Math because they are the ones who can help you.
Remember to always ask the correct persons for advise.