Stop Being A Financial Burden For Your Family

As New Year’s resolutions still go, you may want to add a financial health point to your wishes for self-improvement this year. For a lot of people, the beginning of the year is the time to express their dreams and aspirations, from becoming a millionaire to travelling around the world. In reality, resolutions are extremely similar to a toddler’s Santa’s list. They are often full of impossible, unnecessary and self-focused items. Instead, it’s still time to make a difference this year with a selfless aspiration: Not being a financial burden for anybody. Don’t let your family pay for your mistakes anymore.

Payday shark loans that hurt the guarantor

It’s not uncommon at the beginning of the year to struggle to make ends meet, especially as a result of the traditional Christmas debt. You might need a short-term solution to manage the bills this month. Nevertheless, you need to stay avoid from payday loans, even though they may seem accessible and quick. Most payday loans require a guarantor who will have to make repayments if you can’t. With high-interest rates (over 1000%) and lack of security, these shark loans can tear a family apart and put your guarantor in troubles.

How much are you really worth?

While most people tend to believe that their worth in unquantifiable, financial institutions disagree. Your worth is estimated at the end of your life and will be measured in terms of funeral costs, capital assets and remaining debts. In other words, if you don’t want to leave your loved ones exposed to a financial nightmare, you need to take early dispositions, such as researching funerals on a budget and sorting out your debts. Don’t be that person who bankrupts the family with their lack of financial planning.

Ill-advised investment? Don’t take that chance

Did you know that most wealthy families lose their fortune within three generations? One of the main reasons for this misfortune – pun intended – is the pursuit of bad investment decisions. However, you need to be prepared to lose a lot of money if you don’t understand the financial subtleties of the market. In other words, if you don’t understand the business or the market, you shouldn’t invest. But even if you do, you need to stick to amounts that you can lose comfortably instead of betting your entire household income on the success of an unknown startup.

Sharing is not caring

If you’re prone to financial uncertainty, it’s important not to share the risk with your spouse. Joint bank accounts are the most common way to drag your partner into your debts. A poor rate score or the accumulation of unpaid creditors can impact on your spouse’s financial health. If you still need a joint account, you can choose to create an additional and isolated account in which you can both pay money for the weekly or monthly use. This will ensure that you keep daily financial activities separated and don’t put your partner at risk. Show you care and don’t take them down with you!

In the end, becoming debt-free is naturally an objective. But it’s essential that you remember that there is no need to let your financial hiccups affect your family.