Unlock The Door To Financial Freedom

Adult life will often take people by surprise. Most don’t expect to be thrown into a world of bills, debts, and other money problems. But, the world of finance is a cruel one. And, it doesn’t treat anyone kindly. This makes it extremely important to be prepared for unexpected issues and have the knowledge to set them right. Once you achieve this goal, you will reach a new level of financial freedom that you’ve yet to experience. To help you out, this post will be going through several areas of finance that every adult should consider. And, some ways that can be used to improve your current situation.

Unlock The Door To Financial Freedom - bank vault door image

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  • Savings

The path to financial freedom starts by spending as little money as possible. Most people will get through a large chunk of their pay within the first few days of getting it. When you have money in the bank, it can be easy to feel like you don’t have to be careful. This will often lead to impulse buying, which isn’t good for anyone. So, when you first start budgeting; it’s important only to spend the money that you absolutely have to. If this means missing out on some luxuries for a while; that’s alright. You can use these items as motivation to get you through the saving. Thinking about what you miss will make it easier to drive yourself to success. The money that you save from this should be put away safely, though.

The money that you save won’t be much use while it’s sat in your account. And, you might find it hard to save without a goal to reach. It’s best to try and save enough money to cover at least three months of living. This will give you more than enough money to resolve most issues before they impact your life. And, this gives you a reasonable goal to reach. This money should be kept in an account that is designed to make a large amount of interest. Most banks will offer small savings accounts, which allow you to have access to your money instantly. These are perfect for most.

  • Debt

Some people will find that their issues are more than just a lack of money. A lot of people have debt to deal with. But, this sort of issue can be very hard to deal with. Thankfully, if you’ve followed the first step to save and put your money away; you’re already on track to start paying off your debt. If you can; you should aim to save alongside repayments. This will mean that you’re making progress in both areas. And, will help you to reach your goals faster, too. A lot of companies that offer loans will also offer you the chance to rework your repayments; if they’re too hard to make. This gives you the chance to get some help with your loan.

Throughout this stage, you have to be very attentive. It’s easy for money to disappear without a trace when you’re not watching it carefully. Money gets spent; then, you will forget about it. And, soon enough, this could make it impossible to pay back your loans. There are loads of tools that can be used to help you to monitor your money. Systems like Quickbooks give you a great chance to get control of your money. And, they’re not expensive to use. Along with this, it’s important to learn when is best to take a loan. A lot of people find themselves in a bad situation with debt because they have to get a loan in an emergency situation.

But, this nearly never has to be the case. If you monitor your money all the time; it will be hard for future issues to slip through the net. You will have a good idea of when you will need the money. Using this sort of practice will help you to predict how much money you will need long into the future. Instead of having to rely on getting money quickly and paying high-rates multiple times; you could get a larger loan to cover everything. Or, if you can see that your current debts are getting to a low enough level; you could consolidate them all into a bigger loan. Having your debts in one big loan will usually mean that you’re paying a lot less interest back. You will only ever have to pay money to one place. And, you will have the chance to spread the loan over a longer and more reasonable period. These are all great benefits to those in debt.

  • Income/Outgoings

There are other considerations that have to be made; when you’re working on your money. A lot of people don’t earn as much as they should for the work that they do. Thankfully, this is easy to check, too. Most countries will have resources available to help you find the average rate of pay for your position. If you’re paid less; you could talk to your employer about a raise. This might not work, though. In this case, it could be worth having a look at some similar jobs. You may find that you can get a very similar job in the area, with higher pay. This could make life much easier for you when it comes to sorting out your money.

To further help with your financial situation, you could also look into some other ways to make some money. Most people have skills or interests that can be translated into income. For example, you might really enjoy playing musical instruments and have the right skill level to teach them. In most places, you don’t need any specific licenses to sell this sort of trade. So, you’d be able to do it freely and easily. When looking for chances like this, it’s best to do loads of research. Most people will ignore most of the options in front of them. But, to get the best chance at making money; you have to take advantage of everything you can.

Sorting out your financial situation won’t be easy. But, likewise, living without enough money all the time will be very challenging. You have to consider which of these lives you’d prefer to lead. If you make a difference now; you’re much more likely to have a comfortable future. If you don’t, though; you’ll be happier now. But, life could get very hard later on.

Hug your kids at home, and belt them in the car

Hug your kids at home, and belt them in the car - young driver image

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That day we pass our driving test, get our license and the keys to our very own car is more than just a pass, more than just a rite of passage and a thing to do; it is a child’s first step to freedom. It allows them to explore the world a bit more, gain some independence and financial freedom, and it allows you – the parent – the chance to have a little more time for you.

However, as wonderful as cars are, they are also extremely lethal and demand respect and responsibility. After all, they are still one of the biggest killer’s in the world and can destroy more lives than just those involved in a crash.

What’s more, those between 15 and 25 are at the most risk. That is why it is so important you teach your children the importance of road safety and responsible driving from as early as possible. It is all too tempting to treat these machines as toys, but they aren’t and it is the parent’s responsibility to ensure this message is understood.

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Teenagers Feel Invincible

Teenagers tend to take more risks than anyone else, and that is because the area of the brain that is supposed to aid in good decision-making isn’t fully developed until the early to mid-twenties. That makes this quite a tricky topic to navigate because teenagers aren’t able to fully understand the potential dangers of driving. According to the experts at The Brown Firm who specialise in the law and automobile accidents, teenagers are also susceptible to seeking new sensations, which will see them test the boundaries and take risks. Of course, not all teenagers will exert the same level of risk-taking tendencies, but it is still imperative that parents are aware of these personality traits. As such, you should reinforce safety requirements such as seatbelts, mirrors, speed limits, drink driving and the use of cell phones at the wheel. All of these need to be taken seriously.

Inexperience Is An Issue

We all learn from experiences, it is the most beneficial means of learning; learning by doing. Driving is no different. An experienced driver learns how to handle a blowout, icy conditions, wet roads and more. An experienced driver knows what to look out for and can almost preempt an accident and thus do everything they can to avoid one. They have reflexive skills that come with time. Teenagers don’t, and this inexperience makes up a huge percentage of car crashes, which is why parents need to be proactive when it comes to helping their teens become more knowledgeable and experienced behind the wheel. Get them to put in their two pennies worth from the passenger seat when you drive around town. Get them to point out potential hazards and get an understanding of different traffic conditions. Then go out with them on long and short journeys where they are driving and see how they do, offer them guidance on certain things and how they could have better handles a certain situation. Give them confidence as well as an understanding of defensive driving skills and why they are so important in their well-being. A great rule to learn, and one that has certainly stuck in our heads since childhood, is that it’s better to be ten minutes late in this world than to be ten minutes early for the next.

Peer-Pressure Is A Killer

We have a duty, as parents, to teach kids how to handle peer pressure, because it can have a huge influence over our children, and that can be bad if your child is driving a car. There is a huge difference between cool and safe when it comes to youngsters and cars, and so kids may try to impress their friends with foolish behaviour. Luckily, recklessness seems to have calmed down since we were at school, and caring about things has gained a sort of kudos that wasn’t around a few years ago. But it is worth teaching your children the results of driving too fast and not wearing a seatbelt. This could be done by showing them statistics, or crash videos, or going to seminars where people talk about how a crash ruined their life. These may seem like drastic measures to take, but the safety of your child could demand that sort of approach. It is better to be safe than sorry after all.

Have Them Prove Themselves

Driving is privilege, not a right, and that is something you and your kids need to understand. S such, it could be worth emphasising this and explaining that your child needs to gain your trust and respect before they can enjoy the full freedom of life on the road.

 

It’s more about freedom than it is money

http://thefinancialfairytales.com Financial Freedom imageTrying to teach children and young people about financial matters can be tough. Everything seems such a long time in the future when you’re very young and, in many cases, the natural tendency in life is to desire material objects as status symbols – most notably when we’re young and impressionable.

There are many resources available to try and make financial matters more fun and interesting for children and young people – but most of these do tend to concentrate on the numbers, albeit often in very creative ways.

But one thing all young people very much can relate to is freedom. And real financial advice and sound management of one’s finances is really far more about freedom than it is about money itself.

Encouraging children from an early age to concentrate on life’s essentials and to eschew status symbols for their own sake can help give young people a solid grounding for their lives ahead. In other words; finances can be boring, but the freedom to be able to do almost as one pleases certainly isn’t – and this is something children and young people can very much relate to.

So if, for example, they think about life’s essentials (and Maslow’s hierarchy of needs is an excellent teaching tool in this regard) of home and income for the things in life we need rather than simply want – it’s a good starting point.

An excellent source of information on the wisdom of buying one’s home is available from HSBC. The study also shows just how disadvantaged those starting late in sorting out their finances will be in the future.

It was said 2000 years ago by the Roman philosopher Seneca that wealth is the slave of a wise man and the master of a fool. The quicker a young person can come to understand the true meaning of this philosophy – the happier they will tend to be in life. This is not about the pursuit of money, but the pursuit of freedom and the time we all need to really be who we are.

Encouraging children to seek out their true vocation in life, one which also provides a good or reasonable living, is one of the most important lessons we can teach our children. Then managing the income that living provides and living well with one’s means as we steadily build the requisite capital to give us choices in life is also vital.

A lot of what modern society throws at young people, though, is not like this at all. The power of the commercial world in convincing young people that they “should” have a great car, the latest scents, a certain lifestyle, the latest mobile devices and so on – is immense. And much of the advertising is aimed specifically at the innate weaknesses most young people have as they try to establish themselves in society with their peers. It goes right to the heart of human nature and is a malign influence.

It’s our job as parents is to fight back and demonstrate to our children that rejection of short-term materialism and the things beyond our financial reach is a great way to achieve the freedom to do the things we truly want to do in life.