How financially responsible are you?

How financially responsible are you?

Making regular payments for your plastic cards (debit and credit) is not just enough. However, if you have the habit of staying up to date with these card payments, it is a great effort on your part to return someone else’s money once you have used it. However, financial responsibility is much more than just. What does it mean when people call you financially responsible? Let us find out.

  • How much do you spend?

The most essential part of handling your cash is that whether or not you are following a planned spending schedule every month. In other words, it means are you spending as per your plan or you are not being able to maintain that limit that you have set for yourself as far as expenses are concerned. In order to opt for planned spending, you can do the following-

  • Note down your income (cash inflow)

  • Write down the financial obligations that you have every month

  • Set aside the cash for each expense

  • And spend accordingly

  • It also means you are working out a budget every month

  • Being financially responsible also means you are maintaining the fine balance between cash inflow and expenses.

  • Prioritize expenses

  • Emergency fund

Have you kept aside some cash for the rainy day? Always make sure that you keep aside some cash every month so that you won’t regret that you had saved it for emergency.

  • Loans and managing debts

There are very few individuals that you will come across that has not availed a loan. And if you are in debt, work out ways that will bail you out of the situation. If at all you need loans, regardless of whether they are short term loans online or from brick and mortar stores, exercise caution. This is because if you are availing loans virtually, you need to be on guard that you are not taken for a ride. If required opt for debt consolidation and pay off your debt at once. And prior to signing the contract in the event you are applying for a loan, shop around for the best loan service provider. There are several such companies in the market and each one will try its best to retain clients and attract customers by offering the best rates of interest and terms and conditions. So, take your time and do your bit of homework prior to committing. Opt for the one that will suit your requirement the best.

  • Avoid vicious debt cycle

Last but not the least, even if you have availed a loan, make sure you repay the amount when you are supposed to. If you are good with your repayment plan, you can enjoy better incentives (as your credit history improves) in near future. Also, you can avoid falling into debt again and again and prevent yourself from availing loan from one loan servicer to pay off another.

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