Personal Finance is about Long Term Financial Stability

Posted on 11. Oct, 2012 by in Your Wealthy Life

Financial stability

There is a good chance that this is going to come out wrong, but I’m going to go ahead and say it anyway, I have never been in a situation where I didn’t have enough money.

Before you click away thinking that I’m talking up my financial position, or just flat out lying, I’d better clarify a few things.  When I say that I’ve always had enough, what I mean is that I’ve always paid my bills on time, paid my credit card in full before interest kicked in and managed to feed myself and now my family with a little money remaining to fund a small ‘sanity’ allowance.

One of the main reasons I started this blog was because I saw so many people around me that were unable to balance their income and expenditure. On the surface it looked great, they all had lots of nice things, went out all the time and did what they liked. I couldn’t work it out, based on what I knew it wasn’t just hard to keep up with these people financially, it was impossible.

Beneath the surface however, these people were in debt up to their eyeballs. They never have enough to pay all of their bills, they compromised in other areas (like healthy eating) to save money and had credit cards that they never pay off completely, the interest charged was an accepted part of the lifestyle they had created.

Relying on high interest, no hassle loans and buying things on higher purchase don’t even factor into consideration when I’m looking for ways to have the things that I want, but for many these are just another way to sink deeper into unhealthy debt.

I’m sure that the people I know aren’t the only ones that live like this.

So what am I doing that is so different? Not much really, I still have many of the same desires as most people, but unlike many I temper it by looking at my budget before I splurge. Ultimately the difference in overall lifestyle is minimal, it might mean a few less meals out and more at home, having one family car instead of two, taking lunch to work instead of buying it and putting excess money towards savings or investments instead of thoughtlessly spending it.

There have been a few times where I’ve thought that I was missing out, but instead of thinking that I can’t do that, I though how can I do it and made allowances for random incidental spending in my budget. There are always ways to do the things you truly want to do, you just need to decide what that is and disregard the things that don’t matter.

Financial stability is not just important to your future, it is important to what you do and how you feel now. Find ways to do the things you want without adding financial hardship and it will feel all the sweeter when you remember it later.

What can you do to balance your finances and ensure your have stability now and into the future?

Image by Digitalnative 

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3 Responses to “Personal Finance is about Long Term Financial Stability”

  1. I understand you completely – I have never been in that position either. My parents always taught me to budget for a rainy day, and I have; I think having a solid financial education puts people on the right path for making smart money decisions, and not getting themselves into situations that could put them in trouble financially.

    • Money Cactus

      15. Oct, 2012

      I think we might be in the minority Elizabeth, but I’d love to influence even the smallest amount of change in someone that needs it if I can.