With the economy being worse than ever before, and so many people losing their jobs , learning how to manage your finances better is essential, not only because it will help towards saving money, but also because over time, it can lead to economic prosperity as well.
Tips for achieving economic prosperity
1. Count on cash
Credit is certainly convenient, but is only helpful short term. Long term, excessive use of credit cards is certainly going to lead to credit card debt. Using credit cards too much is way too easy, even for those who are usually able to manage their finances well. The temptation to search in your wallet for that little plastic thing that can help you make purchases without actually paying for them right away, is too big, especially if you have more than once credit card. To prevent the worst from happening, start training yourself to use cash as often as possible. Carry cash with you when you go out, specifically the exact amount of cash you are going to need for certain purchases and services,and leave credit cards at home. When cash is not an option, then it is safe to use a credit card, but even then, pick a prepaid credit card so that you can track and control your spending habits better.
2. Think twice before making any purchase
If you are one of those people that tend to buy the first thing they like in a store, you are doomed to get into serious debt very soon, if you haven’t already. For that reason, it is wise to think twice before making any purchase. Go home and think about the item you want to buy. Do you really need it? Is your life going to get difficult without it? If the answer to these questions is no, then you should not proceed with the particular purchase. Getting into the habit of thinking things through will help you save a lot of money which can later be put to much better use.
3. Do not do what your friends do
If you have friends that tend to spend a lot either because they have the money to do so, or because they simply want to, do not feel obligated to do the same yourself so as not to feel different and awkward. If you are pressured by your friends into making purchases that are going to cost a lot, pay for expensive services and generally live the luxury lifestyle, muster up the courage to put your foot down and speak up. Politely yet firmly, explain to your friends that you like to feel free to spend your money in the way you think it is best and ask for your decision to be respected. If that does not happen, keep a safe distance from these friends. It is best to be safe than sorry.
Achieving economic prosperity is all about learning to use your money instead of letting your money use you. The above tips will help you towards that direction without you having to try too hard.