Some say that money is the root of all evil or that you do not need money to be happy. This post is not to reinforce or go against this message but merely to shed some light on the importance of financial security. Money is a tool, and with the declining state of the world’s economy, people require this tool now more than ever. Money doesn’t only pay essential bills and support families in the present. When you have financial literacy, you learn how to leverage it in savings and investments to provide security for years to come. Hence you end up working less while enjoying more of it in the future. However, money can also be a pitfall for those who use it compulsively, buying and spending more than what they can afford, for example, buying expensive luxury items, paying for nights out on credit cards and taking out unnecessary loans. These could quickly become a liability in debt.
There are various ways to leverage an income which you can research. The idea of working hard and playing harder in the context of finance is quickly becoming redundant. This is apparent with people promoting awareness of minimalism and ways to spend money consciously. It is essential to know your financial health whether you are in a relationship, living with family or alone. When you take the time to assess your earnings and spending, you can make a financial plan that works for you and will benefit your future. If your financial status is chaotic, you will continue to fall into traps. And some companies take advantage of people who are already in financial traps.
Having financial security allows you peace of mind, which could positively impact your mental health. Losing sleep over money woes and being anxious about whether you can pay your bills on time is unhealthy and could lead you into haste decision making that will further cause a detriment to your mental health. If your financial health is poor, organisations and services are available to provide support and advice. You have to muster the courage to find them and ask for help. Having financial security is imperative, especially when you have goals such as buying a property, saving for your family or even if you want to treat yourself to a vacation.
So take some time to look at your finances, create a plan that works for you and stick to it. Life comes with many sacrifices, but you won’t regret them when you reap the benefits in the future.
Until next time.