Debt is a bondage that weighs down the mind and sometimes affects genuine relationships. Therefore, it is very important to make sure that your financial goal aligns with your life goals. You are aware that the best way to manage your money is to stay out of debt and have a strategy in place before the expenses or temptations arise.
Proverbs 22 verse 7: “The rich rules over the poor, and the borrower is a servant to the lender”
Don’t be enslaved by debt, financial education and proper planning is the key to a healthy financial life.
Suggestions that can give you financial freedom includes but not limited to:
1. Work hard, live simply and save wisely
2. Value family togetherness by discussing money with your significant other and your kids
3. Be honest, fair , and generous in all financial dealings
4. Avoid borrowing, especially for consumable or fast depreciating items
5. Do not use credit cards unless you have the money to it off each month
6. Pay your bills promptly
Some Reasons Why People get into Debt
1. Reduced or loss of major source of income and expenses remain basically the same
2. Unexpected price increase for basic necessities such as utilities, insurance food etc.
3. Medical expenses
4. Lack of self-discipline and contentment
5. Impulse purchases
6. Not living within our means
7. Covetousness: This is one of the major causes of indebtedness. You become covetous when we eagerly desire things which belong to other people, even when you do not have the power economically to purchase such things. It is common knowledge that wrong desires produce wrong actions.
8. Poor money management: Mismanagement of your income will create a gap and you might constantly be in need of money which will lead to borrowing regularly to close the gap. Proper planning and money management will prevent unnecessary spending and guide you to keep your spending within budget.
9. Banking on a windfall: Charging your credit card or spending money for special projects or purchases in hopes of a special gift or another source of income that you are “hoping” will be coming soon.
10. Saving too little or not at all
11. Financial illiteracy: Build a relationship with your money and understand the burden of debt. Learn more about your personal finance.
Feel free to email me at margmortgages@gmail.com or call 780 901 8060 with your personal finance questions. And subscribe to my blog for future updates.
