Personal Finance: Paying The Price For Financial Ignorance

One of the worst things you can ever do when it comes to personal money and personal finance, is to remain ignorant regarding how to handle your money and get your finances in order. Those who aren’t financially literate, find themselves in serious financial crisis often in their lives. Then, they claim that life has been unfair to them when in fact, they haven’t done anything to change the circumstances. Here we are going to go over some of the most basic financial tips that will help on our quest for financial freedom.

Debt should always be your priority when you’re in it. Make your payments and avoid the ostrich syndrome of burying your head in the sand pretending it will all go away. The longer you ignore debt, the more interest it incurs, the more late charges and eventually, it could be sold to a collection agency where more fees may also be added on. Soon, that small $100 debt may reach thousands and it’s easily prevented if you just take a few steps to correct it before it’s too late. This is especially important regarding your credit cards.

Pay off debts with higher interest rates first. Talk to your creditors and try to arrange a repayment plan that won’t affect your cost of living.

Never take out a payday loan except in dire emergency. Frequently, people will play with their credit line in order to maintain a lifestyle to keep up with the Jones’. The truth is, they can’t afford this and soon, they are regretting it. Live simply and life beneath your means. You’ll appreciate the extra sleep you get not having to worry about debt.

Pay your debts off and stay out of debt as the first step in managing your finances. Second, become financially free. We aren’t lecturing you regarding your savings, or lack thereof here. We are encouraging you to decide what your triggers are for emotional spending and avoid them.

For some, it’s shopping when stressed or upset. For others, double lattes are a must. Find those triggers and find ways to work around them and you’ll find ways to save your money.