Some people will put off making that credit card payment or delay savings for retirement. These little mistakes can add up to big headaches and even bigger regrets later on in life. The following are four reasons why you should be financially responsible.
1. Good financial decisions can lead to a happier relationship
Money is often cited as the number one reason for divorce. Financial issues can lead to arguments and fights that can cause a major strain in any relationship. Usually, these problems are caused by falling behind on bills and not having enough money to keep up with other monthly obligations. By working together, a couple can set up a budget and avoid financial pitfalls. A little planning can go a long way.
2. Raise a child who understands finances
Children will eventually have to work and begin to manage their own financial lives. Unfortunately, this type of education is not normally taught in high school. Therefore, kids will often learn about finances from their parents. As a parent, if you are financially irresponsible, your child will pick up your bad habits. That can lead an adult child having a hard time adjusting to financial responsibilities. By setting a good example for a child, you can raise him to become financially responsible as an adult.
3. Good financial habits can lead to a happy retirement
Most people do not have enough to retire and they are forced to work well into their 70s and sometimes their 80s. The number one reason why most people can not retire is not that they did not have sufficient income, it is because they did not save for retirement while they were young. By saving at least 10% if your income, and placing it in a low-cost index fund, you can be well on your way to funding a stable and happy retirement.
4. Good financial decisions can lower stress
Ask most people what stresses them out the most and you’ll most likely get “money” as the number one answer. Stress is often cited as one of the causes of high blood pressure which can lead to a stroke or a heart attack. Making smart financial decisions, such as paying off credit card debts and avoiding outlandish purchases, can not only help your finances, it can help you keep your stress levels in check.
Being financially responsible can not only help your bank account, it can help your kids, your relationship, and your own body. Have a plan for your money each month and stay ahead of bills and credit card payments. With a little financial responsibility, you can enjoy a long and happy life.