The Money Mask
Financial management is a crucial skill that everyone should posses, for it is necessary for everyone to get by, be it whether they are rich or poor. My main focus for this article about financial management is a "Money Mask" that many people choose to put on.
What Is A Money Mask?
In my opinion, a money mask is a false impression of one's financial state in which one feels that one can get by safely and comfortably based on their current financial state as they have a good income and need not worry too much about spending and debts. What I mean when I say someone puts on a money mask is that they do not see the truth of their financial state or the need to save money and spend their money less sparingly.
For example, a person who draws a reasonably high salary but debt ridden with credit card debts, but yet chooses to spend on unnecessary things such as branded goods, and believe that they can still get by paying the credit card minimum payments and continue living a comfortable life, when the fact is that the credit card debts could well overrun his/her finances one day and it also causes him/her to part with a huge sum of money every month when it is not needed. Hence this person has put on a money mask, where he/she has masked up the truth of his/her financial state to himself/herself, and is unable to see through the credit card debts that lie mask of his/her good salary.
Is Putting On A Money Mask Dangerous? Why?
The answer is yes. So many people nowadays who earn an at least decent salary feel that they are earning quite well and want to lead comfortable lives enjoying many of life's pleasantries such as fine dining, high class houses and cars. Most of these people end up spending more than they can pay, and build up piles of credit card debts. Even after that, they feel that they can still continue excessive spending while paying off card minimums and continue to live comfortably. Unfortunately so many of these people soon find themselves unable to cope with their debts or find that it has become a huge obstacle in their lives, whether it is by the ever increasing debt amounts or a situation where they need money such as medical treatment or even loss of job.
These people had put on a Money Mask and felt that they could avoid being in the red so long as they could pay off the minimums for their debts since they earn a good income every month, but they do not realise that the huge sums of monthly payments adds on a burden to their finances, that they have no money to spare when needed and also the fact that if they lost their job their finances would just collapse and leave them to bankruptcy. If they had managed to see through their good incomes and found the increasing amount of debts and sought to resolve them one by one, they will find that not only are those overbearing debts depletable but also that without so much monthly payments they can have slightly better lives every time the debt increases.
How To Better Manage Your Finances And Prevent Being Money Masked?
- Its probably the oldest trick in the book, being thrifty. If you command a good income and are thrifty, chances are you will not really rake up much debt and you can easily make ends meet and still have savings for emergencies.
- Always be aware of your financial state. Even if you have a great income, but if you have a lot of debts that income won't be so great anymore. Make an effort to clear the debts and you will find that you have more money for yourself thereafter.
- Treat bills like plague. Everytime a bill comes in, settle it as soon as possible, don't splurge and let the bills pile up, spend on non-basic necessities only after knowing that you are cleared for the month.
- Another great trick is to save money. Too many people spend what they earn only to find they don't have any savings for emergencies or when they are out of job. It is good to have savings for such situations, no matter how well off you may be now, it is best to not think that you can just spend freely, save for those rainy days.
- Clear debts when possible. Just won the lottery or got a big bonus? Don't spend it all on the stuff you want, try to rid yourself of as many debts as possible first, after all, the lessened monthly payments will be way more rewarding over a period of time compared to a one off excessive spending followed by financial problems.
- Do not own too many credit cards or even debit cards. The best cure is always prevention, other than a credit card for when it is really needed, have no other cards if you are financially stable is good as it prevents you from being tempted to spend more than you have to pay it back later, because the interest is not worth it and gives you less money for yourself every month. It is best to have less cards, after all, you don't really feel the pinch when spending if you are signing on a receipt or money is deducted from your bank account compared to when paying cold hard cash, which helps control spending temptations.
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