Why financial freedom is so worth the effort to get there
Financial responsibility might not sound like fun, but it's the key to financial freedom – just think what that would mean to you.
You might want to travel… Pay off your mortgage so you’re living debt-free… Take care of your family and give your children the best possible start in life… Retire early so you can spend more time doing things you love… And who wouldn’t want the security of knowing they’re ready to cope with emergency costs that crop up from time to time?
All of that can grow out of living within your means, making saving a priority, and avoiding “bad” debt – that’s borrowing for things that reduce in value. In other words, being financially responsible now, could lead to the life of your dreams.
Here are just a few of the good things you could look forward to if you commit to making good financial decisions right now.
Making your house a home
Saving regularly is an important aspect of financial responsibility. Once you make it a habit to save as much as you can, you’ll be on track to enhancing or owning your home.
Once you have a deposit and apply for a loan (reno on the horizon?), financial institutions will use your credit history to decide how much they’re prepared to lend. Once again, good habits will work in your favour – here’s how to maintain an excellent credit score.
- Stick to just one credit card and clear the balance every month
- Keep applications for credit to a minimum
- Pay your bills and make any repayments on time.
It’s also a good idea to check your credit score regularly to ensure there are no errors.
Have fun without going into debt
Every budget, however tight, should include money that’s yours to enjoy in any way you please – without feeling guilty.
At first, when you’re living a no-frills life to pay off debts or save a home-loan deposit, your ‘fun’ allowance might just about cover your favourite magazine. Then, as you become more financially secure, you can gradually increase the amount you pay yourself until you’re free to indulge in travel, a boat, the latest technology, charitable donations – anything that makes you happy.
Take care of the family
In Australia, the average cost of raising a child to the age of 17 is just under $300,000 – and that’s not taking any loss of income into account. It’s also based on essentials rather than options such as sports and hobbies, pocket money and gifts, not to mention university or college fees.
When you’re financially secure you can give your children a great start in life. You’ll also be leading by example as you teach them the meaning of financial responsibility – how following a budget and saving is the way to achieve a financially secure future.
One of the best things you can do for your health is be financially secure – and not only so you can afford the best treatment.
Struggling to make ends meet can leave people feeling anxious. And, if the situation goes on for a long time, the constant stress can start to affect their physical health, too.
The good news is that, wherever you are now, you can decide to be financially responsible. Draw up a budget, start saving – and look forward to the fun and peace of mind that comes with financial security.