Bring Some Love to Your Financial Situation by Managing Your Finances Properly

By Ryan Laspina
Senior Specialist, Red Flags and External Reviews

Valentine’s Day has just passed and love may be in the air for many of you. However, can you say that you currently love your financial situation?

A lot of people, especially young college students or recent graduates, may be struggling financially right now. There may be college expenses, student loans and other expenses that affect your finances.

Tips for Improving Your Financial Situation

Like the people you love, finances need care and attention, too. Here are a few tips:

• If you struggle with college expenses or student loans, take solace in the fact that these expenses are worth it. It costs a lot of money to earn a degree, but your education is a worthwhile investment in your future career.
• Be vigilant about your spending habits. Keep track of where your money goes. If you fall into a doomsday situation where you believe your finances cannot get any worse, you could make poor purchases that will damage your credit. Debt always grows worse from emotional spending and bad financial decisions.
• Look at the positives and appreciate where you’re saving money. While you may have high student loan debt, perhaps you do not have a large monthly car payment or, better still, your car is paid off. Maybe your rent is lower than the average person’s or you do not have any credit card debt. Remember to appreciate what you do have.
• Remember that your long-term loan will be over someday. Even if you are on a 10-year repayment plan for your student loans, there is an end date in sight. Keep chipping away at your debt, month by month. You will reach that final payment date perhaps sooner than you ever thought possible.
• You control your debt; your debt does not control you. Sure, you may have to make some early sacrifices, but only you determine how far into debt you go. There are necessary costs to attend school and to live. But once you understand the difference between needs and wants, you will start controlling your debt so your debt won’t control you.

February is a month for love. While it is great to have someone to share your love, it is equally important to love yourself and pay attention to your financial situation.