Finances have become extremely complicated. Credit cards, loans, monthly subscriptions, taxes and payment plans have people struggling to figure out how much money they have, need, earn and owe.
Financial courses provide us with the math needed to solve financial equations. Financial experts tell us what worked for them and provide us with specific directives based on their lives.
We all have a unique financial landscape consisting of income, savings, debt, assets, hardships and blessings.We can all increase our income, increase our assets and improve our financial picture. We need to make our own unique financial decisions using our individual situations and goals.
How can you improve your financial picture?
- KNOW YOUR FINANCIAL BATTLES – Begin honing in on the financial battles in your life. What loans do you have and what are the interest rates? Can you make a plan and commit to a timeframe to pay off higher interest loans as soon as possible?
- GET A NEW PERSPECTIVE – Approach your finances with a new perspective. Instead of complaining that you are living paycheck to paycheck, consider that you have a consistent income and dependable income and you can choose and change how you spend your income every week. You are not the victim of your financial transactions; you are the director and decision maker of every financial situation in your life.
- BE ARMED – Approach each battle armed with information. Research your options ahead of time. Ask friends and family for their recommendations. Evaluate and analyze risks and rewards.
- ADAPT TO MODERN TIMES – In these modern times, we need to learn and understand the current financial culture and how it affects us. Everyone wants our money and we hold the power over our spending and saving. Modern technology provides us the ability to quickly apply for a loan online but it also makes it easy to get into a predatory loan or misleading contract quickly. The modern world is full of financial tricks and traps. It is up to us to figure them out and not get stuck in bad financial deals.
- BE CONFIDENT – Believe you can make the best financial decisions for yourself. The information we need to win financial battles is found in our every-day lives. When we go to the store and compare prices, we are evaluating and judging what and how much to buy. When we negotiate a loan, we are using our skills to get the best deal possible. When we take courses to improve our job-related skills and seek new jobs, we are progressing in the fight for a successful career. You already have many of the tools you need to improve your financial landscape.
While modern times bring us complicated financial issues, they also bring us the ability to more easily connect, acquire information and share ideas.
We can all improve our financial landscape and we can help each other avoid traps, improve negotiations and win our financial battles. If we can share our stories, ideas and advice with each other, we can all improve the outcomes of our financial battles and ultimately improve our financial picture.
We won’t win every financial battle but we need to win the financial wars in our lives.
STORY 1 – MONTHLY FEES
Jeff was excellent at getting great deals. He found free exercise programs and free seminars online. He found some discounted cleaning supplies for his home which were part of an introductory offer. He also subscribed to some services requiring a monthly fee such as video game subscriptions, gym membership and a clothing subscription box service. He didn’t keep track of all his monthly fees as they were all minimal amounts. He forgot to cancel subscriptions for services that he got on introductory offers. And, he failed to keep track of which services he actually needed and was using. His monthly fees escalated to an amount equivalent to his rent.
STORY 2 – COLLEGE LOANS
Becky applied for and was admitted to a moderately costing college. However, neither she nor her parents had enough money to pay the tuition and housing. Therefore, she applied for and received federal grants and student loans. The college financial advisors helped her through the application process. They explained that FASFA (federal grants) do not need to be repaid and student loans do need to be paid back but at a low interest rate and the payments on the loans do not begin until after she completes her college degree. They did not tell her that the interest on some student loans begins to accumulate as soon as the loan is issued. They did not tell her that the interest compounds and some loans charge penalties and fees if payments are missed. They did not tell her that student loans could negatively impact her credit score. They did not tell her that the student loans will be with her for the rest of her life or until she pays them off. They did not tell her that student loans cannot be dismissed in a bankruptcy. As with many college students, she was unable to find stable employment for the next several years and missed some of the student loan payments Fifteen years later, the amount she owed had risen significantly and she was unable to qualify to purchase a house due to her outstanding student loans.
Photo by Pawel Nolbert on Unsplash