Your complete guide to achieve financial freedom. Proven tips, tools and tactics for you to achieve financial freedom. Make money, save money and effectively manage your money.

Habits and How You Got There

Written by Dian Herdiana on 6:36 AM

The situations we find ourselves in and in particular where this involves financial difficulty are often caused by the habits that we have. Humans are habitual beings and most actions in our life are caused by the habits that we have adopted which are very often difficult to break.

None more so than habitual spending on the wrong things or the things that we don't need but feel we want.

This is going to take a bit of work on your part to have an honest look at the way that you spend money and see if there are any habits that are attached to your spending that caused you to get in your current financial strife.

This might be as simple as having the desire to have the latest fashion clothing at all times or to be seen in a brand new car.

It could be that you prefer to eat out all the time rather than cook your own meals at home because that is something that you've always done.

There could be any number of habits that are causing you to spend money were you shouldn't.

What is causing you to spend money when you should be saving?

What is causing you to go into debt and the stress that goes with it for the sake of having what everybody else has or what currently happens to be trendy?

You could just be in the habit of buying the wrong food every time you go shopping simply because you don't have a shopping list written in advance where you know exactly what you should be buying and sticking to that list rather than buying whatever takes your fancy.

Sit down with a pen and paper and write down the areas where you think habits are affecting your life and your decisions with the handling of your finances. Most people if they are honest will be able to come up with a reasonably long list of things that are affecting their decisions in life and once these are revealed you can go about changing them and thereby changing your whole lifestyle where you understand the importance of the balance that will bring about health, happiness and financial well-being.

Consolidating Your Debt

Written by Dian Herdiana on 6:33 AM

Consolidating your debt can help you to manage your debt more easily by helping to pay off many creditors at once with the use of another loan.

While this is generally only a transfer of debt from one place to another you can often get better interest rates on these new loans, particularly if you get it through your bank as a personal loan or by using your home as equity and that in itself can save you money.

By consolidating your debt at a lower interest rate you will be able to reduce your debt faster and in the process have the ability to pay off your high interest debts sooner.

It might also give you the capacity to grip superiority of saving money by beginning your loan repayments bygone and occasionally you can get discounts for well-paid debt on time.

Having one loan rather than a number of individual debts can make your budgeting a lot easier and can also reduce the number of debt collectors who could be calling at your door seeking payment of outstanding debts.

If you do decide to consolidate your debt then calculate precisely how much you need, to cover the various debts that you want to clear, and use the new loan to pay off that debt in a second if not you may be tempted to use the money elsewhere and in doing so make even more debt.

It might even be worthwhile having your new consolidated debt payable over a longer term to reduce your monthly payments and help you to focus on other more important or higher interest debts sooner.

The whole idea of debt consolidation is to improve your financial position and you should be looking at ways that you can do this. You must make sure that the interest payable on your new consolidated debt is fixed at a rate that you can budget for as it is too risky getting a variable interest rate loan where the rates could rise and leave you in a more difficult position than you would have been had you not consolidated.

If you are working with a credit counseling agency then discuss your intentions with them beforehand and get their expert advice on what the best solution for you will be.

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