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7 Reasons You’re Unhappy With Your Financial Situation

7 Reasons You’re Unhappy With Your Financial Situation

Christmas spending got you down? Don’t fret. Follow these tips to stop spending on the things that don’t matter and you’ll right your financial situation sooner than you can say ‘cash back’.

Spending On Things You Don’t Need

My girlfriend loves “luxury.” Before we started dating, she always used to take cabs, dry clean her clothes, and spend too much money at the bar. My parsimonious ways have helped her change those habits. Now we walk or take public transportation, dry clean only our finer clothing, and if we do decide to go to a bar, we try to have one drink (and rarely is it a top-shelf liquor).

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Spending on Many Poor-Quality Things Instead of The Good Stuff

The old saying ‘buy good, have good’ still rings true. I remind myself of this when clothes shopping, especially. It’s much better to dress in the European manner of owning a smaller, but more classic and expensive wardrobe than in the American tradition of having a closet full of clothes that were once fashionable and which we no longer enjoy wearing. The same goes for shoes—it may make you feel good to wear new clothes while they’re still new, but unless you love that shirt, it’s not worth buying.

Spending Too Much On Dining Out

I love to eat out too, but I try not to do it more than a couple of times a week. Cooking at home always saves money, especially if you’re cooking for more than one person at a time. If you are cooking only for yourself, try to cook twice as much and bring your leftovers to the office for lunch.

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Spending Instead of Saving

You need to save a little bit from every paycheck, whether you plan to spend it on a rainy day or a 401k. Too often we don’t diversify our savings, so that all of our money goes into the short-term (for savings between six months and two years) without focusing on the mid-term (three to five years) or the long-term (ten years plus). Different kinds of investments, such as savings accounts, mutual funds, and government bonds can help you spread your assets wisely.

Spending On What Doesn’t Mean Much To You

Consider what you love to spend money on most of all. Is it travel? Electronics? Giving gifts? Whatever it is, set aside money for it, and sacrifice your other expensive priorities. It may take a month or so to get used to, but once you start spending on what you want, instead of what you’re used to, it will make for more savings. Plus, these new habits will dissuade you from impulse buying and help you value what you are saving for when you finally do buy it.

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Spending Money When You Don’t Have It

If you really want to improve your financial situation, get rid of your credit card debt. Unless you’re charging to change your own life or fulfill a dream you’ve always had, do not spend more money than you make. And if you are going to charge large amounts in order to achieve something you’ve long desired, make sure you are prepared for the future lifestyle sacrifices this will require.

Spending Time Worrying About How Much Other People Spend

People have different agendas and different life plans. Maybe your friends are making more money than you are. But before jealousy rears its ugly head, consider that maybe they won’t make as much as you will in the future. We all have different paths in life, so don’t focus on what your friends have.

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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