Little Things you can do to feel good financially
It's hard not to find someone who hasn't had any money troubles. Being stuck on repaying the interest on a huge loan instead of paying for the principal, maxing out every credit card on your arsenal, unable to acquire any real property because of an outstanding student debt balance - these are just prime universal examples of tight financial situations.
And how do we solve problems like these ones - do we try betting on the lottery everyday?
Do we ask every relative we know for money, because they don't always impose an interest rate?
Do we dress ourselves in the best makeup we can afford and be like the Man with the Twisted Lip on one of Sherlock Holmes stories?
(The Man with the Twisted Lip is the story about a man who left his day job to beg on the streets because he could earn so much more just by sitting down and putting on the most convincing makeup.)
No we don't. Since it is already immensely difficult to get out of tight financial situations, the best thing you can do is prevent being in one. And I don't want to quote that overused medical add age on this one; but you know what I mean when I talk about this.
Here's how to feel good financially:
1. Make not one, not two, but three savings.
Indeed they do encourage you at school to put up a savings account or stash away some extra money you get from day to day - but what they don't usually tell you is that one isn't enough. (From where I come from, school teachers have the most horrifying outstanding balances on their loans, so why should I really listen to them in the first place?) Two is the minimum number of savings you should have. Three is pretty darn solid. And this is really regardless of the amount - whether it's 1,000 bucks or 500 or even just twenty. It's more important to spread that money out than it is to make it grow big only on one place. The reason for this is that you should be able to classify your savings into at least two kinds: first is the savings you take money from when in a pinch and second is the savings where you just primarily deposit to until it balloons to who knows how much.
2. Establish a little cooperative bank.
What id you and your pals could spare some change each and every day? This is pretty good to do when you have people whom you see on a regular basis, like at work or even at school. Establish a little cooperative savings wherein each of the members spare a little cash when there's extra or during a paycheck. This will enable the members to have dividends and even do an emergency loan when in a pinch, without the messy paperwork to fill!
3. Don't ever forget to enjoy yourself.
The secret to feeling awesome even while being a very thrift person is to enjoy yourself from time to time. We're all entitled to a vice or a special hobby or a special treat to a restaurant every once in a while. Just make sure it doesn't get too frequent than it should.
4. Only make a loan when ABSOLUTELY necessary.
It's so difficult not to loan when you really want or need something, and you've got the capacity to borrow. Three simple words that will fix your borrowing problem - NEVER GIVE IN. If you want something, save for it and pay in cash.
5. Be well informed about your nation's economics.
People really take this last tip for granted, but this is incredibly important if you really want to be financially secure. Be informed about your nation's economic situation. Although it would be apparent in the living conditions of your country, what matters here is that you really know the numbers, and not just the images you see from around you. It can be so subjective. Know what there is to know about how your nation's doing in its price stability (inflation rate) and where its headed (GDP and all that boring stuff). Who knows? Maybe you'll be a big businessman one day and you'll desperately need a background in macroeconomics.
When it really comes down to it, it's discipline that'll make you feel ultimately good about your finances. Just remember that savings comes first before expenses.