Why It Pays To Look After Your Money
Unless you are part of a tribe who are cut off from civilization, there is a good chance that money is a huge part of your life.
Money is an essential part of life
The majority of the population of the planet require money in order to survive. The country relies on the financial industry to look after the economy as well as generate income and jobs. Since money is an essential part of our lives then it makes sense that you would wish do everything you can to live a financially healthy life.
How our society has influenced our relationship with money
The rise of ‘easy credit’ and the normality of relying on loans and credit cards have been blamed for the current financial crisis. Saving is seen by many as a luxury that they cannot afford. Credit cards and loans have become a lifeline for many people.
Unfortunately, it is all too easy to fall into the trap of relying on credit to subsidise a low income but then being unable to afford the repayments. It’s all too easy to find yourself in a position where you use credit to pay off debts. This essentially replaces one debt with another.
The strain of financial problems on your life
The strain of financial problems can affect you in many ways-
- Mental health – stress, anxiety, and depression can all be triggered or aggravated by financial worries.
- Physical health – financial worries can also cause and exacerbate current health problems.
- Relationship and family breakdown – financial worries can also cause tension in relationships.
Work – your productivity at work can also be affected, especially if your financial situation is affected other areas of your life.
Often the first step to becoming financially healthy is to reduce your outgoing and maximise your income. Most people feel this is impossible but very few people are truly as trapped as they feel. So, what can be done to reduce your outgoings and improve your income?
The first step to improve your situation
As boring as it may sound, it’s true. The best way to look after your money and improve your financial situation is to ensure that your income is greater than your outgoings.
Simple ways to reduce your outgoing include-
- Fill out/ create a budget sheet – a budget sheet contains details of all your income and your outgoings. It is a useful tool which can allow you to see where your money gets spent and where you can cut down.
- Reduce your utility bills – there are various different ways to reduce your utility bills. You can cut down on the amount of water, gas, or electricity you use. Alternatively, you can change our supplier.
Cut down on non- essential purchases – this is the simplest but also the hardest. Do we really need meals out, trips to the cinema, or foreign holidays? Probably not, these things are a want and not a need.
- Change of lifestyle – you can also walk/ use public transport instead of driving to work or you could make your own lunch instead of buying it every day. You would be surprised how much changing your lifestyle can improve not only your finances but also your health.
Although these things may seem impossible at first a few small changes can greatly improve your life.