Shift Your Perspective

Some people believe that money can buy you happiness, while other people believe that it is merely a tool to lead you to happiness. Some people think that they need to be filthy rich in order to be called wealthy and successful, but others believe they just need to manage properly whatever money they have now while working their way towards financial independence. Which camp do you belong to?

Here’s the thing about perspective, they result to habit. Habits result to lifestyle. If you have an unhealthy view towards money and finances, it’s also likely you don’t have a great financial lifestyle.

Take debt for instance. Some people believe it is normal to go into debt for basically everything. When you charge your credit card with purchases, you are automatically going into debt. You are going into debt over that $100 hotel buffet, those shiny pair of heels costing $200 and the velvety couch you just purchased. And oh, don’t forget that carton of milk and new toothbrush you put on credit.

While debt may have become normalized, you don’t have to belong to the majority. In fact, you can be picky about what you go into debt for and gain better financial rewards in the long run. For instance, going into debt for taking loans with poor credit because you had to get healthcare and medication means you can come back to the workforce as a healthy human being. You can also begin earning your paycheck once again. You can also go into debt using loans with poor credit to help finance a new home or a college education. These are believed to be great investments that will increase your net worth and expand your earning potentials in the long run.

However, you don’t want to use loans with poor credit for the trivial things. You may like your morning Starbucks run, but if you’re using loans with poor credit to buy your fancy coffee, then this coffee will cost you more than it should. That is because interest rates are attached to loans with poor credit, and unfortunately these rates are higher than traditional loans in the market. Purchasing something with loans with poor credit means that item is automatically charged with the interest too.

Making Your Loans with Poor Credit Count

You need to make your loans with poor credit if you want to get the most from them. Don’t use loans with poor credit for meaningless expenses like a fancy coffee, but spend them on your basic needs and urgent bills instead. It’s always better to have your electric bill covered and not risk the disconnection than ensuring you have the top-dollar latte in the morning. You can always brew your own coffee at home and that would cost you way lesser.

Changing the Way You Look at Money

Now consider looking at money in a different way. Think of it as a tool that will help secure your future, pay for your kid’s college education and afford experiences like travel. Yes, money can bring you happiness in this sense, but money is not the one responsible why you are happy, rather how you treat money.

Learn to respect money and use it to your advantage. Think twice before spending money and determine if that expense will bring you happiness not just today, but in the long run. do the same when you’re considering saving, investing and borrowing money.