Money Management and Attitudes Are Important

Everyone has their own ideas about money. The vast majority would like more of it of course. What is important is that everyone handles it responsibly but the indications are that in the USA that is not always the case. It is easy to blame the recession for the problems it caused but it cannot hide the fact that before it and after, right up to today the level of debt the average American is carrying is a matter of concern. Mortgage debt is excusable. It should be a positive way for a family to build up assets. Once again the recession has affected real estate values but they should grow again and are regarded as long term in the majority of cases. The real problem is the level of other debt with credit and store card debt often far too high for comfort.

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There are people who discipline themselves to save but others seemingly spend beyond their means using credit cards to subsidize their lifestyles; they are spending more than they earn in many cases and ignore the problems that they are gradually building up.

Differing Attitudes

Money is everything from a guarantee of survival to the means to enjoy material things, a nice automobile, fine home and world travel. Some accumulate money as an end in itself while others save for fear of being unable to meet bills in later life. There is no obvious reason why different people within a similar environment take a different approach to it. Those who are fairly complacent but in reality are living beyond their needs may be eternal optimists. As a matter of urgency they should sit down and think of the consequences of reaching a day when they can’t pay their bills.

There are many people whose attitude to money changes as other factors within their lives change. Quality of life is not just a matter of having money. Health and strong relationships are very important. Those lucky enough to be in good health and settled in life may be best able to avoid financial problems. Whether they are able to build up significant assets through life is another question but they should be generally free of problems and stress.

If one of those two elements, good health or a strong relationship breaks down things can change. Poor health increases the need for finance outside normal monthly expenditure of course. The breakdown of a relationship can certainly have financial consequences as well.

Some Pointers

Forgetting the recession for a moment, because that left many people helpless in the face of sudden economic changes, there are some basic rules that if followed should allow people to live a life without financial stress as long as they are prepared to work. Employment figures are back to pre-recession levels so work is generally available for those that want it. Once someone has regular income there are ways to get out of debt and gradually build a solid future.

There will always be temptation; credit cards certainly fall into that category. They should only be used for convenience, not to buy things that are otherwise unaffordable. The balance that can build up will receive a penal level of interest at the end of each month. Without taking positive action that debt will not go away. The best way to remove it is to take out a personal loan and pay it off in full. Those with regular income who appear able to make monthly instalment repayments for the full term of the loan at  www.realisticloans.com should be approved if they are realistic.

Down in Black & White

Those people who prepare a thorough budget will see the picture quite clearly when all the figures are in front of them. Expenditure must be below income and where too much money is going out to pay off debt, typically credit card debt, a personal loan may be the answer. So what are the rules? A budget, the self-discipline and determination to follow it and eradicating expensive debt are guidelines that represent an excellent start. As for individual’s attitude to money, it is a means to live a happy life as long as …