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Why is money so big an issue? Why is it often so difficult to manage, resulting in so many problems?
Managing our money should not be the highest priority in our lives, but it appears to drive our decision making, our actions, often affecting our precious relationships.
Money is a tool that, depending on how we use it, can bring much joy to our lives or it can bring destruction. When we have the financial resources we can bring amazing things to the community around us.
What is your relationship with money? It is a powerful tool or a seductive force?
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Regardless of your financial position, there are some principles that you can apply.
Get your debt under control. I was recently meeting with an intelligent man who was arguing the value of debt, privately and government debt. His argument was that debt allowed you to make purchases, which would allow the enjoyment of life now, and repayments over time while enjoying the item. There is however, the problem of managing debt. The more debt, the more interest payments, the more pressure when the economy turns bad.
We need to give and give generously as part of our debt management strategy.
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Everyone seems to have some debt. From car and house loans to credit cards. The difficulty is that debt can spiral out of control very quickly. Nothing makes managing your money more difficult than debt.
Debt makes us the servant of the lender. Debt means, we owe someone, and because of this they have some control over us. This is not a healthy place to be in, so there is some urgency in getting ourselves out of debt.
There are several responses to debt. Firstly, be careful when and where you use credit cards. Plastic is the easiest way into debt, and does not have the same feeling as handing over cash.
You need to have an understanding of how much debt you have and develop a plan for managing (reducing) the debt. Without a plan, the debt will continue to multiply. This plan includes recording what and where you spend money. This will allow you to track your expenditure, and plan a way out, by working on expenses you can cut.
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Financial advice is available to allow plans to be managed, and to provide advice with dealing with creditors. While it is better to not get into a financial mess, there is no shame in asking for help.
Another response to debt involves saving every cent. I would propose that we need to give and give generously as part of our debt management strategy. My wife and I see being generous as investing in people. While the returns from people may not be financial, they are positive.
We need to have an attitude of saving for the future. Saving and investing now allows us to grow wealthy slowly, while allowing us to live the life we want after work.
By taking control over our finances, keeping a balance between saving and spending, we can enjoy life, without creating a financial mess. It takes self-control to stick to a budget, however, it will allow long term benefits, with short term blessings.
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Photo Credit: Getty Images
TECHNOLOGY CAN HELP—WHY NOT USE IT?
My wife found a great software to money management- Geltbox money – its Simple to use, quick and intuitive.
automatic download from any website (banks,credit cards), high level of security (Your financial data is securely stored and encrypted only in your personal computer.