Financial Distress? Keep These 6 Things in Mind!
Money can be a blessing and a curse. On one hand, money can help you afford things that bring you joy and make your life easier. On the other hand, it can become a source of stress, guilt and anxiety. When we're in financial distress or overspending our budget, we need to stop what we're doing, take a step back from our situation and learn how to better manage it before life gets worse for us!
Money can't buy happiness
Money can’t buy happiness.
Money can buy you happy experiences, but it cannot provide true happiness. Experiences are brief and fleeting. They are, in a sense, over before they have even begun. The joy of an experience is not necessarily available to everyone who has the money to purchase it—that is what makes it a worthwhile experience: exclusivity.
Money can buy time, which is a precious commodity
Another form of currency that we all have in limited supply is time. Time must be spent wisely so that it is not wasted or lost sight of when making decisions about how we spend our days and nights on this planet. * * Money can buy freedom (but it cannot buy happiness).
Finally, money can do something that most people believe requires only their hard work: it can free them from worrying about financial stressors such as paying bills or providing for the needs of their families.
Get out of debt as soon as possible
Debt is an issue, but it isn't the end of the world.
There are numerous ways to manage debt, ranging from making on-time payments to consolidating your loans into a single monthly payment. However, if you want to get out of debt as soon as possible, you must first understand where your money is going and ensure that every dollar goes towards something that will lead you to financial freedom.
Practice taking control of your money
Spending money allows you to practice taking control of your finances. Here are some suggestions:
Don't be afraid to spend your money on things that make you happy. This could include going out to dinner, purchasing a new pair of jeans, or occasionally splurging on a bottle of wine.
Spend money on items that make life easier but do not have to be costly. For example, if you prefer to cook at home rather than eat out, or if you have an old car that needs repairs, invest in tools and appliances that will aid in those tasks rather than purchasing something new (or cheaper). It is not only more financially sustainable, but it is also better for the environment!
You don't need everything right away; take the time to consider what fits your budget before making purchases to avoid impulse purchases (and don't forget about sales!).
Follow the 80/20 rule with your spending
You should spend according to the 80/20 rule.
80% of your income should be spent on necessities such as rent and groceries.
Spend 20% of your income on things that make you happy, such as travel or a new pair of sneakers.
Here are some examples: Rent, utilities (gas and electric), basic food staples (rice and beans), and transportation costs are all necessities (gasoline) Things that make you happy: travel expenses (airfare), shopping for new clothes.
Cut corners on everything but those things that bring you joy
When it comes to spending less, keep in mind that what brings you joy is different for everyone. Your definition of happiness and fulfillment may differ greatly from mine, so I won't tell you what you should and shouldn't cut corners on.
Instead, I'll lay out some fundamental principles to help guide your decision-making process:
Don't scrimp on things that matter to your family. Your spouse and children deserve the best life possible, and your health is critical to both of yours and theirs.
Don't skimp on things that are vital to your health. An unhealthy lifestyle will eventually catch up with you in the form of physical problems such as diabetes and heart disease; eating healthy foods is an investment in both longevity and quality of life by preventing disease (and ensuring that those around us are not exposed). It also helps us stay motivated with goals like losing weight or building muscle mass by providing us with energy throughout the day rather than just making us tired/hungry all of the time!
Money doesn't matter in life, what matters is the people and experiences you have in life
"But what if I don't have enough money to live?" you may be thinking.
It is true that money is important. You must be able to afford the things that are important to you and your family. You also need money to do things in life that excite and delight you, such as travel, experience new cultures and foods, or buy clothes from a store that does not sell clothes for $0.95 each. But it's not about how much money you have in your bank account; it's about being able to buy the things that make your life worthwhile!
Finally, it is critical to remember that money is merely a tool. Don't let it rule your life or you! Follow these guidelines to live a more balanced and happy life, regardless of whether you have enough money in your bank account at the time. If you have any questions about what we discussed today, please leave them in the comments section!
Source: investopedia.com