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personal finance
financial outlay
irrational fears
spending money
financial security
bits and pieces
credit cards
An Essential Necessity In Personal Finance
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An Essential Necessity In Personal Finance

The securing (as much as is possible) of one’s financial security is simple; minimise (as far as is possible) the insecurity of one’s finances. But how does one do this? You would think it would be simple, and it is; but it is remarkably uncommon.

First of all, it is good to identify what might count as insecurities surrounding finances; that is those everday bits and pieces that might result in us going bust.

Amongst these are the ability to spend money one does not actually have e.g. Credit Cards, Loans, Delayed payments etc. These ought not to be taken out unless necessary.

As a general principle these are not necessary unless the necessities of life would not be able to be acquired without them. Again, as a general principle, Credit Cards, Loans, Delayed payments etc are not required for the necessities of life except where they are necessary.

So our first action is to assess the necessity of any Credit Cards, Loans, Delayed payments etc we might have.

Then we can look at the spending money one does not actually need to spend; such as under-used or not-used subscriptions and memberships, or standing orders/direct debits for products which rarely if ever justify the payments – e.g. insurances, warranties and the like.

Whilst insurances and warranties can be wise, there is a balance to be struck between automatic payments for no discernible monthly return; leading to overall financial outlay for what might be irrational fears and concerns - the old just in case scenario.

So our next action is to assess the necessity of having subscriptions, memberships, standing orders/direct debits etc

Then what? – Well, we can work from the simplest principle of all – If outgoings are more than incomings then either outgoings have to be curtailed, incomings have to be increased, or a permutation of both has to put in place.

This is not earth-shattering, financial advice; yet ask yourself this question:

Are all my Credit Cards, Loans, Delayed payments, subscriptions, memberships, standing orders/direct debits etc necessary; and are my incomings equal to, or greater than my outgoings?

If we were all to inventory our current financial status it would be interesting to see just how much insecurity is recordable. As was mentioned on opening; the securing (as much as is possible) of one’s financial security is simple; however that simplicity is not necessarily matched by common status. Therefore assessing necessity is perhaps more necessary than we might think.

It might be essential!

Street Talk

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