Personal Development through Good Personal Finance Decisions

It takes just one economic downturn to make us realize the value of money and how important it is that we develop good personal financial sense. Not all of us were taught the significance of saving for a rainy day when we were growing up, and even if we were, all those words of wisdom were left by the wayside when credit cards and the freedom to spend came along. However, when the going gets tough, it’s the tough who get going and figure out ways to improve their finances and prevent going into debt. When you start to make good personal finance decisions, you automatically develop your personality and become a more responsible and mature person.

  • When you begin to use credit cards wisely – you automatically pay your bills, in full and on time. This way, you not only avoid going into debt by having to pay exorbitant amounts of interest, you also earn more interest on the amount you retain in your checking or savings account when you use your credit card instead of using cash. So the good personal finance decision of using your credit card wisely makes you a better money manager and improves the quality of your life because you’re not stressed out about unpaid bills or increasing interest amounts.
  • When you begin to put aside some money every month – you start to put some thought into every expense before you shell out your hard earned money. You cut down on frivolous and impulsive purchases because you’re saving up for an emergency or a special purchase. This shows responsibility and maturity in the way you live your life; you prove that you exercise control over your spending habits rather than letting your impulses and instincts control you.
  • When you pay off your debts systematically – you don’t have to worry about your home being foreclosed or your credit history going down the drain. You learn the value of building equity in your home and keeping your credit ratings good so that you’re always eligible for financial assistance when you need it to fund large purchases.
  • When you make wise investments – you’re not only saving for your future and that of your family, you’re also being prudent and not choosing high risk investments that could cause you to lose all that you have if the market falls or if your luck runs out. The best investments are those that generate moderate returns with the lowest risk, and when you make the decision to choose such investments, you demonstrate that you’re capable of making wise choices personally and financially.

Making good personal finance decisions over a period of time will bring stability to your life and allow you to live peacefully and without financial stress.