This new year attain financial salvation and never look back!
There’s no one in this world, who is clean of wrong deeds and mistakes.
No one can confidently say “I am perfect”!
Some mistakes are huge, and some are small. But debt is one of those mistakes, that carry some grave consequences. There’s no running from debts. Once you take out credit, it is your sole responsibility to repay it back.
In this post we will be having a friendly chit chat about the financial mistakes we all do, the realization of those mistakes and how to attain financial salvation in this new year 2018.
What is financial salvation in the first place?
It is not just a fancy name, this financial salvation.
This phrase came into use after our country was hit by financial crisis in the first decade of 21st century.
Big organizations and banks ran into huge debts, as price of property and assets started to deflate abruptly.
The whole economy of USA was shaken to such an extent, that one example might just be enough to understand it. The global financial service firm Lehman Brothers declared bankruptcy during this time of financial crisis.
That’s exactly when the need for financial salvation was felt very badly in our country’s economy.
But today, this financial salvation phrase has landed into personal finances, and people are actually wanting to reorganize their monetary standing and recuperate from their broken up financial situation.
To attain financial salvation you must realize your mistakes:
That’s the first step toward your salvation. The realization.
Review your past mistakes and understand them minutely.
I can help you with a little bit of analysis. See what compelled you to take up those debts in the past years. Was it emergency medical expenses or emergency or uncalled for? Then to be practical it was not your direct fault.
But if those debts are a result of unnecessary or luxury expenses then those are your mistakes. You could have hold the rail and moderated those expenses.
So the moral is to get a thorough knowledge of your past expenses and understand where things went wrong!
Now comes mending the habits:
Salvation is deliverance from your sins!
The only way to do so is by evolving into a good and modified self from your past rough and imperfect self!
With financial sins, here are the few habits we must incur so as not to commit the same costly mistakes again in the future:
- The modern day trouble credit cards:
This is probably the biggest and common problem we all consumers face today.
This world currently runs on credit cards. It is convenient and compact.
But these cards carry very high interest rates, In which we can easily get trapped. People have complained that sometimes they end up paying nearly thrice the amount of actual debt they have.
So your aim should be to minimize the use of credit cards as much as possible.
Sometimes it is good to be back to basics. So start making purchases again with liquid or hard cash!
At Least you won’t have to pay more than the real amount.
- Expensive decisions need more planning:
If this year you plan to purchase a new car, a new house or say for example real estate property, then you must evaluate every single aspect of the use of the property.
Only settle for such expenses, if you think you might profit from such properties.
You are past that stage of experimenting with money, and that’s why you need financial salvation.
So always look for profit in every expensive decision you plan. Be that profit a financial or a moral one!
- Increase savings like never before and diversify it:
Unexpected expenses can hit anyone, anytime.
Medical expenses tops the list here.
The only way to cope up with such expenses is to have enough savings as backups.
Also if you look at the brighter side, savings grow on interests with time.
So with proper savings you will have the peace of mind and financial security.
Now you must also diversify your savings accounts. If one account is drained or ditched in times of financial emergency, then you have other accounts or certificate of deposits to help you give support.
- Steer away from drugs and haphazard lifestyle:
Was it due to addictions and being a junkie, you went financially wrecked in the past years?
Then it’s high time to get clear of those things
If dopes are clouding your life, then seek medical help first, and close the friend circle connected to such substances for good.
First heal your body, then your finances.
Now the last touch would be to clear your existing debts
With unsecured and consumer debts, like credit cards, payday loans, etc, your first option should be debt settlement.
If that doesn’t work then try out debt consolidation.
If nothing works out well, like say for for example, your debt amounts are too much to tackle, then probably you should consider bankruptcy.
Now the thing with bankruptcy is, it can actually help you attain the financial; salvation that we are talking about till now.
With chapter 13 bankruptcy, you get to keep your assets, and a few of your low priority debts might get canceled out. With the remaining debts, you will be given 3 to 5 years reorganization time, to repay them.
With chapter 7 bankruptcy, your debts will be washed away in one blow, but most of your assets will be liquidated to repay your creditors and lenders.
But whatever you do, it’s completely your call.
Life is hard mate, but so are you. This year it’s time to seek salvation, and be immaculate again!