Financial Problems

Dr. Purushothaman
March 8, 2013

Money is an essential factor for living in this world which dominates man’s world. Without money, nothing is practically possible. The basic needs to luxury material needs are fulfilled easily with the help of money. One cannot even imagine of a life without money. Problems relating to finance are hence included in the list of problems which man faces in day to day life.

Causes of Financial problems

Financial problems are mainly caused due to the lack of planning in life. Spending unnecessarily can later on lead to a lot of problems relating to finance. Usually, people do not care to save money when they have plenty to spend. A spendthrift never thinks of the future and tends to spend unnecessarily.

Financial problems are caused by:

• Lack of planning skills
• Unexpected medical emergency
• Unexpected damage of vehicles
• Unavoidable repairs in the house
• Lack of interest in future
• Spending money for less priority items
• Craze for shopping
• Unnecessary spending habits
• Excessive use of credit cards
• Spending to impress others

Dealing with financial problems

Once a person faces a financial problem, it would become difficult for the person to even sit a moment in peace. The fear of the next day always makes the person uneasy. Sleeplessness and low appetite affects the person so badly that each day seems like a challenge to be faced.
The best way to avoid financial problems is to think beforehand about the future, and what one will have to suffer if he/she spends unnecessarily today. But this is not possible always, as one does not think about future while spending money this day.
One must always be aware that money is something that is needed in times of emergency or to buy something which is needed the most. Spending unnecessarily on any new product can only result in loss of money. Once spent money is no longer with the person. So investing on any deposit schemes in the bank would be of great help in the future.
Planning on where to spend and where to save money must be always kept in mind. Lack of planning can cause a lot of problems in the future. Hence the planning skills must be improved when it comes to saving money for the future. This does not mean that one must become a miser in order to save money. Money is something which should become useful during times of need. So spending for the necessary needs cannot be controlled. Control what is unnecessary and with this technique, one can change life a lot.
Financial problems caused as a result of an unexpected expense caused due to a medical emergency can be really hard to bear. Illness and accidents cannot be predicted. When such situations occur, one really finds it difficult to adjust to the situations. Such a situation can be avoided if one has a health insurance, which also is a part of the financial planning. Planning beforehand can give relief to the affected person and one can handle things easily even when one is not well.
Financial problems caused due to unnecessary spending habits can only be avoided by stopping that very behavior. Thinking about the future will stop one from being spendthrift. Financial problems can make a person feel sick and tired of the world and everything seems to be coming to an end to these people.
One must first understand that one needs to change the lifestyle gradually, if ever one needs to come out of the debt. Be ready to make sacrifices and alter life completely. Keep off from things that are capable of pulling one towards debt. Put a stop to all the tendencies that makes one spend more. Living a life to please or impress others is not what a person has to live. One’s life has to be lived in one’s own way. Plan and cut short expenses to live a free life.

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