Are You Financially Responsible and Capable?

financial management

Being financially stable is perhaps everyone’s life’s goal. Having the simple luxury to take a break from work and talk to a reliable real estate agent without reservations. Who doesn’t want that?

The goal of being financially secured and stable is something that both business leaders and employees know. Both values smart financial management and prioritization, and in different but similar ways, people all work to achieve the said goal. Business leaders innovate and open new businesses, and employees grind even hard to gain a sense of security. Although people think that financial stability is a subjective goal, different people from different social classes all look at it the same way.

Remember that financial matters are all different for each individual. If you are making enough money for your needs, and someone would tell you that they could do so much more with the money you are earning, it only means that you have different lifestyles and matters to prioritize.

It is easy to get offended and upset by such a statement, but there is no need to be. There is a saying that money rules the world, and there is truth in it. However, just as everything is relative, money is no exemption, but in retrospect, there is important common ground regarding the matter that everyone can relate to.

Credit Cards and Installment Plans Help

Contrary to the belief that credit cards are designed by banks to earn, they have positive advantages that help people with their financial matters.

Having a credit card is not that easy. First, you need to be approved by your bank. You need to be a qualified individual with a large sum of funds stored before you get your hands on one. Second, credit cards are indeed how banks earn. They use the interest you pay for to earn, but it does not necessarily mean they are designed against you. Paying for your credit transactions teaches you how to be responsible and accountable for the privilege you are given.

It also proves that you can manage your finances and that your local bank teller wasn’t wrong to approve your application. Lastly, having credit cards is almost akin to having a power you are tempted to use, and so it teaches people to have self-control. Yes, there are cases where people get buried under their own debts, but that is only because they failed to be responsible. Credit cards are neutral tools, it is up to its user to wield them.

Having Emergency Funds is Crucial in Life

Anything can happen in life. One unfortunate slip on the bathroom floor can lead to costly surgery, and even if you are being too careful on the road, you do not have any control over the things that could happen. One day you are fine, the next day you can find yourself in the hospital needing fixture.

There are insurance services that got you covered, but even with those options, there are limits. Having emergency funds is your safest bet to wade through life. Unfortunately, health care is yet to be accessible for everyone, and without these funds, you may find yourself in a helpless life-or-death situation. You can prevent that by always thinking of what could happen in the future, and saving. It would hurt to cut a portion of your earnings every month, but you would thank yourself in the future for it.

Investments Should Go Hand in Hand with Savings

As the economy grows, the value of money decreases. Yes, the banks provide you with savings interest as time goes by, but it does not negate the fact that the value of dollars is inconsistently going up and down each second. Holding on to your savings is the first way to become financially secure but it is not guaranteed to grow.

It is just sitting money in a vault somewhere. Just think about your bank applications that grant you access to manage and monitor your figures, and think about how your money is basically stored in a man-made system. A system that was unlikely to fail but could.

What you can do is focusing on investments too. Find ways where you can grow your money, and it does not have to be a startup business already. There are stocks you can buy and grow, and if you are bold and audacious, you can even try your cryptocurrency. Investments that would allow you to grow your money.

Financial stability and security depend on where you stand, but money is universal, and there are things that all of us would understand and know how to navigate. So if you have colleagues and friends, you can trade experiences and secrets with them too. After all, experiences make good choices, and good choices lead to success.

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