Behavior and Techniques of Financially Responsible People
Introduction
It has become important for people to learn the basic tenets of financial responsibility for surviving the fast-paced and turbulent nature of life. Indeed, money is essential for providing material solutions to particular problems, yet the difficulty in earning and growing it has daunted many. Those fortunate enough to have the means to earn money must learn and acquire the characteristics that make people financially responsible. Learning how to allocate finances effectively enables independence from financial problems and practicality in terms of using money. Herein are some behavior and techniques people must know in order to become financially responsible.
Behavior for Financial Responsibility
Before knowing the techniques for fostering financial responsibility, it is highly important to be aware of the manifestations of people who are responsible in managing their finances.
Behavior 1: Regular Checking of Finances
People who are well conscious of how much they spend tend to pay significant amounts of attention to monitoring their finances. Those people always keep in mind the golden rule of spending within their means, so they make sure that they still have enough finances to back up their spending decisions through checking their accounts regularly (Hunt).
Behavior 2: Constant Contribution to Savings
Financial soundness starts through saving habits, and thus people who are financially responsible always make it a point to add to their savings whenever revenue enters. In that way, they could train themselves to set aside money for other important and long-term purposes. Indeed, no one has the slightest idea on what the future might behold. Financially responsible people are well aware of that, thus they tend to deposit any amount of money that they can (Hunt).
Behavior 3: Contentment, Not Entitlement
Financial responsibility entails that people should not feel entitled to their earnings, to the extent that they may spend lavishly on particular items. In that case, they limit their spending prospects accordingly. They do not conform to any pressure brought by their neighbors or peers on the kind of things they spend on, particularly expensive clothing and jewelries. Instead, they learn to be contented, amidst the temptation of buying things which, while unnecessarily, could increase their degrees of impression to a higher level, subject to the preferences of the people (Hunt).
Techniques for Financial Responsibility
Becoming financial responsibility requires particular techniques that require constant practice. Here are seven most commonly cited techniques that enable one to become responsible in handling finances.
Regulate Credit Card Use
Credit cards exist for a particular purpose – to avoid the necessity of bringing cash in particular spending situations. Usually, credit card usage is justified in emergencies in which cash may not be readily available. Credit card payments require users to render payment at the end of the billing period or as otherwise specified, given the notion that money must be available later for payment. Thus, it is essential for credit card users to use credit cards only in necessary situations. The allure of promotional offers, points systems and convenient payment schemes might urge users to use credit cards more, but it is best to avoid unnecessary usage in order to steer clear from unwanted instances that may lead to unforeseen financial perils, such as in emergencies (Investopedia).
Build an Emergency Fund
Unforeseen events tend to be financially demanding; hence, it is important for people to allocate money for their emergency budget in case there are particular situations that might get out of hand. Emergency funds enable people to stay away from other emergency payment options in the form of loans and credit, which could become financially burdening due to interest rates and other circumstances that might disrupt people from earning the money they need for payment. Anyone could start building emergency funds with any amount, provided there is a regular allocation for it (Investopedia; Exantus 2).
Save Up For Retirement
Allocating money for savings does not fulfill only short-term interests. Rather, it also serves as a way of preparing for long-term prospects, such as retirement. For people to enjoy their retirement lives in the future, it is important for them to set money aside for retirement funds while they are still young and energetic enough for working. It is also important to pay for social services loans and other mandatory government requirements that would enable retired people to have a life worry-free in terms of finances (Investopedia; Exantus 3).
Set Your Budget Straight
Income-earning people reserve the right to decide on their own finances. Thus, they must couple their decisions with a checking mechanism that would remind them of spending within their means. Setting budgets in place enable people to become financially responsible because they could monitor their expenditures for review, to remind them which items they should prevent spending on alongside identifying the essential ones. A convenient way of keeping track of budgets is to write them down on a journal. Through that, people could get to organize their expenditures in written form – one that could enable them to have an easy reference in times of doubt (Investopedia; Exantus 1).
Set High Standards of Spending Discipline
These days, it is easy to spend money with a lot of tools and temptations at hand. The appeal of commercial presentations, product innovations and nifty conveniences coupled with easy modes of payment such as the use of cards or express loans may seem to compose the perfect scenario for a spending wonderland, but such will definitely not be the case if those fall under irresponsible use. Thus, it is essential for people to keep high standards of discipline in terms of spending so that they could avoid unwanted financial perils in the end (Investopedia; Exantus 1).
Conclusion
It is highly important to acquire the value of financial responsibility to survive everyday challenges that could prove turbulent to every moneymaker. Being wise in terms of handling finances is not only a guarantee for financial security, but is also a step upwards to being financially well off. Knowing how to become responsible in finances entails having to become aware of the behavior and techniques of financially responsible people, all of which have foundations on the premises of wise spending, living within given means and instilling discipline.
Works Cited
Exantus, Ash. "7 Ways To Become A Financially Responsible Young Adult." MadameNoire. Moguldom Media Group, 21 Mar. 2011. Web. 20 Feb. 2013.
Hunt, Mary. "Seven Habits of Financially Responsible People." Creators.com. Creators Syndicate, 2011. Web. 20 Feb. 2013.
"The Basics of Financial Responsibility." Investopedia. Investopedia US, A Division of ValueClick, Inc., 24 Jan. 2010. Web. 20 Feb. 2013.
