Why You Should Treat Your Finances Like A Relationship
While that title might sound ridiculous, when you think about it, it’s actually some pretty darned good advice.
Your relationship with money, unless you have a trust fund or invested in Apple in the ‘80s, then your association with your money is always going to be at least rather fragile; you always want to know its okay and even at times where it is! You like how it looks; even more how it feels and deep down, you just love it – tell me how that isn’t like a relationship? Now that you know this, there are a few ways you can take behaviors and actions that you would normally use in a relationship, to improve your finances.
Treat it Right and Look After It
If there is one thing you want to do for a partner, it’s to look after them and make sure they are as comfortable as possible – or at least you should be anyway. This is no different when it comes to your finances. We’re talking budgeting here. Having a budget and knowing your limitations is vital when it comes to maintaining a healthy financial state.
If you know exactly what is coming in, and know exactly what is going out, then you have a much lesser chance of running into any financial difficulties. Having a monthly (or even weekly) plan for your money is going to help anyone endeavoring to keep a steady financial equilibrium in their lives. Yeah, it might be a bit depressing, earmarking all this money that you can’t spend, but believe me, budgeting is the best way for you to move forward and train yourself in frugality and basic financial sense.
Know it Inside and Out
A lot of relationships fall apart because one half never paid true enough attention to the other – they never picked up on the little things and a lot of the time, the little things are the most important things. The same goes for money – it’s full of little things like small print and what seems like countless, sometimes interchangeable terminology.
You need to know your finances down to the last detail. If this means sitting with one of the 12 pages of small print you receive when taking out a new account or some sort of credit, then so be it: it has to be done. Particularly when it comes to credit, you need to know exactly what you’re paying and why. You need to know what charges you could face if you miss a payment and above all, you need to know how these could affect you. The world of money is full of jargon, and it’s important to keep on top of what everything actually means. For example, what is the difference between secured loans and unsecured loans? Knowing these kinds of things can help you out in the future.
Don’t Take It For Granted
One of the most useful pieces of advice for significant others, money…anything really. While it could touch upon the last two points, not taking your partner for granted is part of any healthy relationship, because you never know when things can change. Unforeseen events, change in circumstances, accidents; these can all happen in a blink of an eye and with it, change.
Your money is no different, things can change; things WILL change, so you always need to be prepared. While having a budget will keep you in good stead, you will always need to have that little bit tucked away for a rainy day. While putting away even more money that you can spend on fun things will again be done with a hint of resentment, it really will help you out in life.
Know Where to Draw the Line
It can’t be denied that seeing to your partner’s needs and wants, entertaining them and pleasing them is important for anyone, but it’s also important to make sure that things do not get out of hand. Spoil them? They might have expectations higher than you can cope with. Let them get away with too many things? You might not be able to control them.
Money is the same, especially when making sure things do not get out of hand. If you are like nearly any other normal, modern day person and have some sort of credit or debt, it is pivotal that you keep things under control. This will come under part of your budget, and while things like rent, utilities etc are important you must make sure that your debt is being cleared away at a effective rate and timescale. If these get out of hand, then you will be in for some trouble.
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