Financial Management

Most of time we acquire money from either financial institutions or friends inform of loans with the intention of returning the same or an equivalent, but quite often we fail to honour the promise and we land into trouble. We try coming up with many excuses but to no avail.

Remember excuses were left for the lazy and quite often they are not allowed in a banking institution as loans don’t understand the language of excuses. So long as you are lazy you will never lack an excuse.

Some reasons may be genuine but not all and it’s good to note that not all banking institutions will buy your idea especially when it comes to loan default.

The lender might not buy the excuse especially if the lender is a bank not a not a relative. At times we think of the next course of action/ alternative add this may involve further borrowing to cover up the existing loans.

There are some factors that if considered before accessing a loan one can evade the many problems that come along with loans.

Technology; technology is good, but to some extent, it may mess us up without our conscience and we might end up landing into loans. For instance, if you are in an ATM machine, it welcomes you and makes all your work easier in terms of transacting but when the reverse is true, it cannot allow you to use the machine as it keeps reminding you that you have insufficient funds to enjoy the service.

At times we end up taking lump sum amounts of money inform of loans but if we had put some measures in place, then we could have automatically reduced the loan to a manageable one.

The fact that one can frequently withdraw and deposit money conveniently from a bank account is an advantage to many but also a great threat to some. The reason why so many people are flocking into the banking hall in the name of loans is because of poor money management.

Money meant for and investment is withdrawn at the comfort of one’s home for leisure, and the following day an individual is left wondering where the money went. The next course of action will be to get back to the same bank for loans.

Payslip: the fact that one has a valid payslip one becomes a target market to any financial institution for loans accessibility. With the third rule applying one can access any amount of loan and the period can even be spread further to cater for the need.

This is a great advantage to the financial institution as the interest rate is calculated per annum. We should learn to utilize other opportunities that come our way in order to have extra sources of income so as not to over rely and over-commit the payslip. In the name of loans

Lack of proper planning: Failing to plan is planning to fail. The fact that we have so many things to spend on, does not mean that things should be done in a haphazardly way. Money should be allocated in every area be it drinking, friends, leisure, relatives, transport name them, they should appear on the budget to avoid falling a loan victim in a bank.

Instant gratification: When one has a limited vision he thinks short term and he has no worthwhile goals. This person lacks focus as he is ever looking for shortcuts wanting to achieve riches in a day. Such people are driven by greed and this leads to frustration. Remember that Rome was not built in a day as patience, perseverance and persistent are the way to a successful life.