There is nothing wrong with being a spender. The important thing to remember is to exercise control. Credit cards are so easy to get these days, even if you have a poor credit score. You can charge it now and pay later. Will you gain your financial independence by doing this? The problem with doing this is sometimes you do not always have the money to pay the bill in full. That is when debt starts to arrive.
Paying everything in cash presents is a less harmful solution, but even there you have to be careful. Do you have any money saved for a rainy day? It is a question that is asked a lot, but not many people have the response they would like to have.
Implementing a savings plan is an important part of your financial goals if you can afford to do so. Check out what you should consider:
Independence
Most of us want to have some kind of independence in our lives. Financial independence should be a part of that goal. You are not financially independent if you are currently in debt. You are financially independent if you have everything paid in full and do not owe anything to anyone.
You do not have to be rich to be financially independent. You just might need to cut back on some spending. You could also make a larger deduction on your savings with your income records.
Food
Do you charge everything to the card when you do food shopping? You are not financially independent then. Every time you charge something when you have not paid everything else in full, you are adding more debt to your card. You could be making big bucks when it comes to your take-home income, but you are still in debt.
The best thing to do is save up for something ahead of time. That is the right way to use your savings. Say, for example, you have to spend $300 on car repairs within the next few months. Saving that $300 will make your lives easier instead of charging something you cannot afford. It sounds simple, but it does work.
Debt
Do you have some old debt you are trying to clear out? Figure out how much you need. Take the next few weeks or months to save the necessary money. You can pay your debt down in no time.
Take this as a lesson moving forward. The last thing you want is to repeat the same mistake over and over.
Extras
You may not need anything right now, but what about down the road? There could be a large expenditure you did not plan on. That is why having something saved is a great idea. It does not need to be a major one. An unplanned expense of $50 can cost you.
Lost A Job?
You could lose your job. Nothing lasts forever? What do you have saved for a rainy day? You might need some extra cash to tide you over until you find a new job. Planning is the best way to stay financially independent.
This is not for legal or financial advice. Please consult a legal or financial advisor for your specific situation.
