Whether you like it, or not, each of us, must consider, a variety of personal financial considerations and try to make the wisest, possible decisions! What makes this, even, more challenging, is it takes far more effort, to plan, properly and effectively, than it is, to try to pretend, everything will work – out, without doing so! While it’s true, money doesn’t make you happy, many things in life, become easier, when you are more, financially secure, and prepared! With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 essential, personal financial considerations, and why, each matters, and, some strategies, to, perhaps, consider.
1. Debts: One of the obstacles, many undergo, is the accumulation of excessive amounts of debts, and, the ramifications of doing so. Many financial institutions send many credit card invitations, beginning, when people, are college – age. While, nearly everyone has some debts, it’s how much, and whether, an individual is prepared, emotionally, and financially, to hand these, which makes a big difference. Credit card debt often becomes somewhat debilitating, because, it is so easy, to simply, repay the minimum payment, and, when one does so, the accumulation of interest charges, often, creates an overwhelming burden!
2. Present planning: It takes a willingness and ability to balance, present/ current financial needs, and, planning, smartly for your future. At various stages of our lives, there are different needs. Some of these include: planning for a family; purchasing a home; retirement plans; pleasure and leisure (the so – called, bucket – list, etc). In present terms, life becomes far less stressful, when one avoids over – spending on a whim, and, balancing logic and emotion, in a head/ heart balance!
3. Short – term: In the near, or short – term, it’s wise to prepare for financial needs, and necessities! Some of these needs, depends on your present situation, and planning, accordingly!
4. Intermediate – term: Different people have differing opinions of what the intermediate – term, means. Most consider this, to be, a period from, about 5 to 10 years, from the present time. Again, it depends on your current age, and, situation. Will you be purchasing a home? Will your children be going to school? Will you be retiring, during that period? What other situations, do you expect to face? Will you put funds aside, in case of emergencies, etc? Always have a contingency plan!
5. Longer – term goals: Be certain to plan, in the present, short – term, intermediate – term, and into the longer – period! Long – term goals may include retirement planning, educational funds, a secure nest – egg, etc.
Be prepared! The better you plan, and face reality, responsibly, the less stressful, your life will be!