There are far too many people that are living above their means racking up debt month after month. This debt could be on credit cards which may take years to pay off depending on the interest rate. You can ruin a lot of aspect of life like owning a home if you are financially irresponsible over a long period of time. Living within your means might only take a few lifestyle tweaks rather than a complete overhaul. Keep this in mind as many people think they have to live like medieval peasants in order to save money. The following are tips to start living in a healthy way financially as well as the consequences if you never learn your lesson.
Stop Eating Out So Much
Entertainment and eating out is a huge expense when compared to eating food that you prepared at home. Buying food in bulk can also be a great way to save money as well as frequently hunting for sales. People that go shopping daily are far less likely to waste as they will cook and eat nearly everything they buy per day. This is not an option for all families as there are hectic schedules that might prevent this.
Get A Home Or Apartment That Fits Your Needs
Far too many times people rent out a great apartment then have no money to save at the end of the month to go out and have fun. The same can be said about people that use their max budget when purchasing a home. Get a home that you need rather than fulfilling wants like having a pool which is just an additional monthly cost for maintenance and it increases the water bill. Growing into a home is nice but for those struggling financially this should not be a main priority.
Negative Aspects Of Living A Financially Unhealthy Life
Trouble Getting A Loan For A Car or Mortgage
The one aspect about decimating your credit with late payments and bills that have gone to collection that really impacts someone is lowering a credit score. This will make it hard to find a loan with a reasonable interest rates as lenders use credit score to rate the likelihood of being paid back in a timely manner. Owning a home is a goal of nearly anyone and your financial habits now could be impacting this in the future.
High Levels Of Stress
Individuals that have stress due to financial troubles can lash out at others and ruin relationships. Financial problems or mismanagement of money is often cited as a reason for couples getting a divorce. If you always have your problems in the back of your mind it will be difficult to be truly happy. You deserve to live a life where you do not have to stress about every single bill monthly.
Lose Your Home
Searching “how many missed payments before foreclosure” can be a daunting feeling. Losing your current home due to debts and not being able to afford the mortgage can be devastating. Most lending companies are willing to work with you if you have paid on time in the past such as extending the grace period on certain months. Before foreclosure begins selling the home might be the best choice so you get the money back that you put into the home.
However, if you are active military or a veteran, debt collectors must verify your military status before going to any courts or moving forward with the collections. The way they find this information is a database called the DMDC or, Defence Manpower Data Center. Learn more about how they use the DMDC search here.
Live within your means so you can really enjoy it by living without stresses that poor finances create. Take the time to look at your finances to see if you are really making the best decisions.