Managing Your Money

I have learned a very significant lesson about finances. Debt is always going to be in your life at some point or another. People stress over it but it's truly nothing that you can do about it. all the debt and collection agencies can do is wait until you can pay them. It may affect your "FICO SCORE" or "CREDIT SCORE" but you can improve it as soon as you start paying them again and on time. It's not worth the heart attack or stroke or even your health, period. Material things can always be replaced but a life can't. You really can make the most of your finances by limiting spending to things that you basically need like food, household items etc. Buy in small quantities and as you need them. Put a little on the side, if you can for a rainy day; it is good for emergencies like to pay for medicine or co-payments. For people who have never shopped second hand or thrift, this may be a good time to start. I am a thrift shopper and I find really great items, some never been touched at great low prices. You may choose to shop at a resale boutique for name brand second hand items that are in excellent condition, but it's a little more expensive. You can still find name brand items at a local thrift store. Don't purchase big ticketed items that you can't afford or can't fit into your budget like a car or house. This kind of debt can really send you over the edge because you really want to own your own home; everybody does but it may not be the best option if you don't have at least a 30% down payment, at least $3000 for unexpected repairs and money to have your home appraised. Having that kind of down payment builds immediate equity in case you should get behind on your mortgage. Buying a car that you can't afford is a little bit different because you can make a deal with the dealership to sell or buy back your car only if you are not behind on your payments. So, debt can really be avoided if you just make wise decisions on whether or not you can afford it.