The Importance Of Living Within Your Means
As you continue with your usual standard of living, shopping for the latest on trend clothing or apparel, night out or dine out wit your family, you might as well consider to scrutinize if your living within your means. Before you get to spend your hard-earned money try to analyze if your spending it wisely. The only way to break your poor spending habits is to recognize that you have a problem pertaining to this matter. Moreover, you must realize how important it is to live with you means and know the value of saving.
Besides, living in luxurious lifestyle may not be perceived as a problem to someone who’s earning millions of dollars, but even those who can afford an extravagant lifestyle ensures to live on what they’re finances can afford. So, whether you’re earning huge money each month, knowing the importance of spending within your means is a prerequisite. Each of us has to learn the value of our finances and the effects of taking our spending habits for granted.
I’ll Keep Telling People To Live Within Their Means
You are no into finding ways on how to save while eating out with your family, you live in extravagance and is used to spending your money in a salon regularly. Say, you got your mortgage a year ago for $500,000; you’ve stretched your budget just so you can afford your dream home costing $700,00. Now, you and your other half have an average income and are now considering growing your family.
However, you’re still carrying your student loan debt, payday loans, and the monthly payments for your new car. Besides, you still have the big appetite for debt like your mortgage, your line of credit, and payday loans. Well, perhaps you’d think it’s fine to have various forms of debt since you can still make the minimum payment of your entire debt each month. But, the question is: How long can you sustain this kind of set up? Are you able to save some money? Or Are you just relying on credit to sustain your usual means of living?
Now, what if you’ve encountered an unexpected financial challenge along the way? For instance, you lost your job, or one member of the family needs medical help and expenses, this happens to some families and hoping you’ll get a lesson out of it. This is the reason why I’m sharing this with you, to know the mistakes that you must avoid in getting rid of your debt and manage your money better.
The Result Of Living Within Your Means
Living within your means is very important, especially when you’re raising kids as a stay home parent. Incorporating frugality in spending your money is a way to control your finances. If you’re a parent in debt, you must know how it may stir your kids.
If you keep on living the life that you can afford, it can result in possible depression caused by debt and can ruin your relationships. The good result of living on a budget is keeping your finances on the right track and manage your spending.
The Importance Of Changing Your Spending Habits
Indeed it’s not easy to change spending habits, especially that Christmas is near to come, a guarantee to those who have poor spending habits to be in Christmas debt. Though you’ve set certain goals for the year, sticking to these goals might be hard and frustrating to someone.
However, if you have great intention to follow your goals and is driven by your desire to stick to your plan to pay off your debt, you can potentially achieve your goals and defeat setbacks along the way.
5 Easy Tips To Change Your Spending Habits
- Plan a shopping budget to accurately track where your money goes
- Determine where you can cut back on your budget
- Start saving at least 10-20% of your income each month to build an emergency fund
- Make sure you use your money wisely by distinguishing your needs from wants.
- Save money for big-ticket stuff rather than relying on credit to avoid exerting on debt.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.