Do You Pride in Knowing Everything about Financial Freedom?

For majority of young adults, the most common New Year resolution is to earn financial freedom. Unfortunately they fail to achieve what they set up as a goal on the New Year day. This is because; they have vague idea about what financial freedom is all about. For most of us, financial freedom means having enough of money that enables us to spend on whatever we want. While earning a lot of income and enjoying control over expenses are important financial objectives but those cannot be a true definition of financial freedom.

Financial Freedom

The exact definition of financial freedom is not a universal one as several ones from us have different takes on the subject matter. Here is what I think about ‘Financial Freedom’.

Winning Fear

It is a general and genuine fear of not having adequate amount of money to purchase groceries or pay bills. Going bankrupt is never fun and the same is true for those nearing the edge. Having a good flow of income, clearing debts or controlling expenses will do a lot for fear elimination. But what if you lose or are robbed while carrying money? Having financial security will instill freedom into you.

Surpassing Stress

Money is one of those elements causing stress leading to both physical and mental problems. Now do you think that overflow of money will keep money-related stress away? According to research, problem of depression is high in the richest countries of the world. Studies also claim that earning a $75,000 a year takes you to the point of happiness and beyond that, stress build up.

I want to offer psychoanalysis of the findings. If you have more, you will demand more. And then you will suddenly realize you don’t need all these but need something else. It will go on and on in a vicious circle which is very much depressing. Money cannot buy happiness and that proverb rings truer always!

Getting over Greed

Having plenty of money makes you greedy – isn’t that what you think? According to economics, people with low or middle income roof have a tendency to overspend when they start earning a handsome figure. But marginal propensity to consume is less in higher income group.

As far consumption is concerned, earning more will help you get over greediness because you have already enjoyed so much in your life. And you will amazingly discover yourself seeking opportunities for investment. However, you need to make efforts to overpower the greedy self hiding within and you can do so by contributing to social events, charitable activities and helping others who were not born with a silver spoon in their mouth.

Final Words

It is possible to enjoy freedom from greed, stress and fear at any point across your financial spectrum but then it also depends on your view about money and life. Now it is important to analyze your financial character. Are you in fear of going financially bankrupt? Are you feeling stressed out due to your pursuit of an improved financial condition? Do you find it hard to manage your desire for more that you currently cannot afford? Try to figure out the answers and you will come up with a customized definition of financial freedom.

How Do I Handle Debt Collectors?

First of all, the best way to protect yourself from being harassed or mistreated by debt collectors is to know and understand your rights as well as the statute of limitations. Just because you are over indebted does not mean, the collectors can push you around. To handle such collectors properly and effectively, you should be well aware of what they can and cannot do.

For one, collectors are only allowed to call at certain times of the day. Moreover, the collector should respect your privacy. They are not allowed to call you at work especially if your employer does not allow it. And they cannot inform anyone else about your debt situation.

In case, you receive continuous calls beyond the limits as set by law, you can file a complaint against them. This does not mean however that you are excused from dealing with the debt. It merely serves as a way for you to keep the debt collectors at bay.

how-do-i-handle-debt-collectors

You can also actually make a written request for them to stop calling you. Once the letter is sent, you should, the calls should stop. Furthermore, if a collector contacts you over the phone, he should not make false statements to simply force you to settle the debt. In addition, they should talk to you in a respectful manner and not in a way as if you have committed a crime. It is prohibited for them to use abusive words or make any threats of violence.

Second, after receiving a call from a collector, it is essential that you request for verification. Most of the time, the creditors will contact an agency to handle debt collection in their behalf. However, it is in your best interest to check if the agency indeed has the right to collect payment for your debt.

Third, you have to learn to negotiate. After settling the issue on whether the debt is accurate and the collection agency is rightfully assigned for collection, you should make an attempt to negotiate with the collectors. Start by offering a payment less than what you can actually afford, this shall give you room for adjustment in case the collector tries to deny your offer.

Keep in mind that timing is everything. If you are feeling like the collector is acting firm, unfazed by your attempts for negotiation, then perhaps you can try to make a deal at the time they are more likely to bite into your offer which is usually by the end of the month. After making a deal, make sure that you have everything properly documented. Secure the agreement in writing. Such is important even before you send any form of payment.

Do not act defensively when you receive a call from a collector. Remember, they are only doing their job. If everything goes well, then you can come up with a favorable arrangement. Otherwise, you may consider filing a complaint against the debt collectors that keep harassing you and acting beyond boundaries as set by law.

Buying vs Renting – What Makes a Better Choice?

There is a good number of Americans who dream of owning a house. But is it the right time to buy a home? Many are dragged into believing that buying is a good option than renting as the later is often believed to be akin to draining out thousands of dollars.

However, the problem is property value is floating into notoriously high level, spiking up with every passing day. It is getting really difficult – especially for the people with middle to low income ceiling – to buy a first home. And that explains why renting is still preferred to buying for a certain section of people.

Buying vs Renting

Housing Fees

Let us face the things straight! It is not that you always throw away your hard-earned money while paying rent. The same notion may also be true if you are making a buy. Every month when I pay a few thousand dollars to my landlord, it makes me think that I could have spent that much into my own apartment. But then when I take a look at the current property prices, I don’t have to force myself into believing that I’m throwing money but in a better way.

More Flexibility  

As a 20+ young guy, I’m yet to experience many things in my life. Though I love my current city a lot, I’m not adverse to the idea of relocating if right opportunity comes on my way. And it is needless to say that relocation comes with a lot of headache, especially if you own a house. Renting is more flexible an option and gives you a lot of convenience. Flexibility and convenience cannot be measured in money but the abstract feel means a lot to the adults and people like me who have just started out to earn their bread and butter.

No Unforeseen Expenses

Majority of those who want to own a house often forget a host of responsibilities and expenses that come with proprietorship. Cost of maintenance is most important of all, with others being expenses for insurance, closing, selling etc. And then you will find yourself always spending money on repairing or fixing things. Many roofing companies offer competitive pricing, it can still be expensive if you’re not prepared for it.”. You will also have to take care of ground maintenance and lawn work. But if you are paying rent, you don’t have to take all those into your head.

Price Location Wise

Buying can be a preferred option if compared with renting but that depends on where you will live. Location is what plays the key role here. There are several cities in America where property prices are insanely high and appreciate more quickly than what is experienced in other parts of the country. Given my current salary slab, it will take me years to make that much investment. But until then, I’m happy with my rented apartment and won’t mind spending money in someone else’s apartment.

Personal Choice

Last but not the least, it is up to one’s personal choice whether to buy or rent. Others’ view is not the sole thing when it comes to consideration because your choice must be based on your own needs. Preference, income, flexibility, lifestyle play a big role in deciding whether you should go for a buy or renting.

Save With Economic Gift Ideas

Human beings are social creatures and to stay in a society you have to follow certain norms. Being a social creature means staying in a group. Usually, humans do not like staying alone and to stay in a group you have to maintain good relationship with the other members. To foster relationships among society a number of occasions are celebrated.

These occasions are nothing but reasons for getting together and maintaining relationships. But that does not mean you will through away your money on gifts.

Economic Gift Ideas

But such occasions like weddings, birthdays, christening and so on are costly affairs for the hosts as well as for the invitees. As invitees you need to get gifts for the occasion and in general every family has to attend plenty of such occasions in a year. Just calculate the amount you spend on gifts each year then. There are ways to save money on gifts without compromising on the quality. All you need to do is spend a little time in place of money and you can have good and unique gifts that are economic too.

If the occasion is that of birthday or anniversary of a close friend or relative, you can bake a cake instead of spending a fortune in buying an expensive gift. Rest assured that a cake baked by you would be more precious to the receiver than anything you buy them. This way you not only save money but also impress the receiver by showing your love and care for them. If cooking is not your area of expertise, you can always go for some other self made gifts. Hand made gifts never fail to make any receiver happy since it is a fact that in this fast forward age, the best gift you can give anyone is time. A hand made gift goes to show that you have spent a lot of time in creating it.

If the occasion is an official one or of a distant acquaintance and you are not particularly eager to spend any time making a gift, still you can be economic and save money on gifts. All you have to do is plan ahead and research a little instead of just going to a shop just before going to the occasion and buying anything you can put your hands on. You usually end up spending more if you are in a hurry while gift shopping.

Giving and receiving gifts are not only societal norms that help us to maintain relationships, they also spread happiness. But like it is said, money cannot buy happiness and hence you do not need to spend huge amounts on gifts just to make your loved ones happy. Being economic in every aspect of life is a part of good personal financial planning and buying gifts is no exception.