Money and finances: the cause of the anxieties of most families
“I believe that saving is essential for an orderly life.”
–John D. Rockefeller
Martha was having a restless night. The other day she received a statement from her credit card company telling her that she was behind on her monthly payment. She also felt harassed whenever a debt collector called her at her office and home, sometimes even at odd hours of the night. She was also having trouble paying the mortgage and the monthly payments on the new car. Her financial problems are partly due to her husband Ben, who admits to being a big spender. Ben is an avid car enthusiast who spends a lot of money to “give life” to his Japanese car and make it look like one of those street racers in the movie “Too Fast, Too Furious.”
The money problems have gotten so big that both Ben and Martha now experience enormous stress and anxiety every day. Because of their financial difficulties, they now fight a lot and trade blame for falling into the debt trap. No wonder money is now one of the leading causes of divorce.
Money, or rather, the lack of money is one of the main reasons for stress and anxiety in marriage. In the United States, the average household has credit card debt of at least $9,200. The Bens and Marthas hardly know the strategies and techniques to achieve financial success. The common mistake among struggling couples is spending more than they earn. The lack of discipline in the use of credit cards also leaves many people enslaved to making payments to pay off both the principal of the loan and the interest.
We all face different challenges and pressures on money. It can be really overwhelming to deal with these financial problems if nothing is done about them from the start. Due to the constant demands to cover our daily expenses, it also becomes the main cause of stress and anxiety that can eventually ruin your emotional and physical well-being.
But money should really help us improve our lot and not make our lives miserable. To ease the pressure caused by financial problems, it may be helpful to read and consider the following financial management tips:
First, develop a realistic budget. This is the first step you need to take to regain control of your finances. Make a list of all the money you owe or accounts payable, then decide to pay them off one by one based on your fixed ability to pay. Also, it’s good to make a list of all other sources of income. The next step is to write down all of your “fixed” expenses, such as your mortgage, rent, car payments, electricity, credit cards, and insurance premiums. After that, determine how much money you have left so you know exactly how much you have left to spend on other things. It’s important to stick to your payment schedule and not create other accounts payable before you finish paying priority accounts. It is highly recommended to carry a small notebook that you can use to write down all your expenses. With the little notebook, you can keep track of where your money is going. Also, using a budgeting computer program can be a helpful tool in balancing your checkbook.
The second step is to teach your children about money issues. Kids these days are easily lured in by commercials and publicity gimmicks. With peer pressure and the constant barrage of fads, kids can end up losing their allowance for some things they don’t really need. It is never too late to teach children about money matters. You have to tell them how difficult it is to earn money and that not everything they see in the toy store or on television is owed to them or can be bought. Children around eight years old can already be trained to manage their allowances and start saving.
Another step towards financial freedom, believe it or not, is to contact your creditors. Explain your situation to them and ask them to restructure your loans. Ask them to come up with an option for debt consolidation, but make sure the interest rates are manageable and the monthly payments are within your ability to pay. Also, try to convince your creditors to devise a modified payment scheme that leads to a win-win financial situation.
Cost cutting measures should also be an automatic task if you want to regain financial freedom. You can save money by doing simple things like turning off lights when you’re not using them… scheduling your trips or errands to the grocery store… or simply cutting back on junk food purchases. All this will help reduce your monthly expenses. One surefire way to cut costs is to reduce spending on entertainment. For example, you might stop subscribing to that magazine or choose a cheaper cable show with fewer channels.
Once you have enough savings, you may choose to consult a financial advisor regarding investment options and instruments, such as mutual bonds and stocks.
Your financial situation should not go from bad to worse. You have options and you can take control of your money. But regaining your financial freedom will depend on your goals and how disciplined you are to achieve those goals.
The key to financial freedom and a debt-free life is completely up to you. Being debt free is, after all, a great stress reliever.
