Top Secrets of Overcoming Miserliness

Family finances

Miserliness is a miserable state of mind in which an individual may refuse to spend for the most essential needs of his life. Or he may wait for Christmas and festive discounts to buy his T-shirts and inner-wear. He neither attends parties nor hosts them.

He may prefer a cycle rather than taking his car or a metro-rail while traveling to the office. The last meal he had in a restaurant might be on his wedding day 10 years ago. You can go on listing many such aspects of being miserly. If you have three or more such symptoms, it is time to examine your behavior and make changes.

What Makes Misers

Most of the misers of your previous generation or before became so due to circumstances. They might have gone through the periods of economic recession. They might have struggled from hard conditions to become prosperous. They still carry the conditioned mind that forces them to save.

Fear of financial insecurity is built so deep into their psyche, that it becomes almost impossible to remove it. In fact, they might have lived with it for the most part of their lives. They might have filled the minds of their children and grandchildren with similar psychic ideas. Generations can become miserly and live like vagabonds in spite of having plenty of money with them.

How to Overcome Miserliness

 You may be miserly die to mental conditioning. It may not be so easy to overcome it. But it is not impossible.

Come to Reality: Spending on your needs and the needs of your family is not being spendthrift. Make a list of essential things for your home and family. You have to eat nutritious and tasty foods to enjoy your life and stay healthy. You will need electrical and electronic appliances for running your household easily. You will need a car or a motorcycle to travel to your workplace.

The other things your family may expect could be an annual family vacation, eating out on weekends, going to a movie, or visiting your friends and dear ones whenever you get a holiday.

List family Essentials: Make a list of such essential things with your spouse. Let her prepare the list of her needs and let your children make their own. Be prepared for the shock. Then you can filter only those things which are extremely essential.  Now life may seem to be easier and better.

Enjoy the Essentials:  Once you buy the essentials and get comfortable, it is possible to look at life from a different perspective. We do agree that material possessions alone may not bring happiness to life. But they can ease the burden of living your life only for the purpose of survival and sustenance.

Spend for Family: Once you start spending for the happiness of your family, life becomes more meaningful. You will start realizing the goals of your life better than before.

Earn More: Soon you will think of earning more rather than trying to be miserly and miserable. You can experience better earning opportunities knocking on your door like never before.

How Your Credit History Affects Your Borrowing Options

Credit ScoreUnless you have enough cash on hand to purchase a home or car outright without financing, you may find yourself in a situation that requires you to borrow money from a lender. Your credit history becomes the most important aspect of your life in this situation, but that’s not the only time it’s important. For example, even if you do have the cash to make any purchase you want without any financing requirements, you might not be able to secure a job, an apartment, or even a rental car if your credit history is not good enough.

What Your Credit History Says About You

Your credit history is a long list of the way you use money when you borrow it from someone else. For example, if you had an online installment loan with a lender you did not pay back, it shows up on your credit history. It tells other lenders that you are not a reliable borrower. Lenders want to see that you can and will repay them if they choose to lend you money. If they see regular late payments, missed payments, or defaulted loans on your credit report, they’re not going to give you the money you need to buy a car, a house, or even a credit card.

How to Fix Your Credit

If your credit is damaged, it’s not the end of the world. It’s not ideal, but you can repair your credit by focusing your time and putting effort into it to make it easier on you. The first thing you should do when you’re working to repair your credit is to check your credit report. You should know where your problems are, and you should know if there are any mistakes listed on your credit report. If there are mistakes on your report, dispute them. Write a letter to the credit bureau explaining what is wrong with your report. If you have proof that something is incorrect, provide it to the credit bureau.

The bureau will ask the creditor to fix the problem. If the creditor does not respond within 30 days, the issue is removed from your credit report. If the creditor does respond, it’s either to fix the problem or to say that they feel they are right in reporting what they reported.

The next step is to make all your payments on time, pay down your debts, and make sure you do not utilize more than 30 percent of your available credit. Do not close credit cards if you pay them off. This lowers your available credit limit, which causes your credit utilization to rise.

How Bad Credit Affects Borrowing

When your credit is bad, you simply will not get a loan from any lender. If your credit is bad but not awful, you might be able to get a loan from a lender, but you’ll pay a much higher interest rate. This means the loan is more expensive to repay. You can always find a cosigner to help keep your rate low and to guarantee you get a loan, but many people are hesitant to cosign a loan for someone who has a rocky credit history.

If you have the cash to make large purchases, you might not need to borrow money for things. However, you must take care of your credit score. It’s the most important number in your life in terms of your finances and your financial future. Pay your bills on time, don’t incur too much debt, and be careful with your credit report.