Welcome to 2018! It's time we talk about our finances. We live in a busy world, where you have to work hard to earn some money. Despite that, there are some important things that may be needed, but because of low finances it may be difficult to attain. The issue of finance affects everyone, even the rich. There are also some habits that may hurt financially. Let's consider some of these.
Immoderate Debt
It is not wrong to borrow money, but before borrowing one has to really think if it is really needed.
A wise man once said,
A borrower is a slave to to the lender.When you borrow funds, you are actually enslaving yourself.
With this in mind, one has to think carefully before borrowing funds. In my neighbourhood, many have become hypertensive because of debts they owe. They worry about how to pay back. Imagine a scenario where someone borrows money with the mind to pay back in a month's time, then when it is time to pay back, his situation then gets worse. It is better not no borrow, if there are other means you could work with.
Diversification In Sources Of Income
Personally, I feel it is wrong to rely in just one source of income, especially when you are working for someone. Your employer may come one day and say he has financial challenges of his own and let you off. There's an English proverb that says "One should not put all his eggs in one basket." Having just one source of income can be compared to riding a unicycle with one tyre, it is unstable. When you get a bicycle (having two tyres) it is more stable. A tricycle (with three tyres) is even best and more stable when compared to the rest. And then a vehicle is better than the other three, because it is more stable. A tyre is like a source of income, with many sources of income an individual is also more stable.
Balancing Earnings And Spending
Only an unwise person would spend more than he earns. Maintaining a balance between earnings and spendings is really important. If there is no balance, you might end up spending money even before it comes. No one wants to get broke because of poor decisions, so we have to consider many factors before spending.
One way to balance earnings and spendings is setting financial goals. If you save or invest funds for future use this would cause improvements in your financial life. In the crypto world this is knowing as HODLing, you HODL no matter how low the value of the coins might be right now, because of future thoughts.
Image credit for first photo: Zenythlife
Thanks for reading :)
