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5 Simple Sensible Observations for Financial Health


Mark Twain once wrote "A man who carries a cat by the tail learns something he can learn in no other way".

People often say experience is the best teacher and as a result I learn from the experiences of other people, good and bad. It may also be sensible for people to also learn from my own experiences. Given this as it relates to financial success many people often refer to one of the richest men of the twenty first century for guidance as to how they are to navigate the world to achieve significant wealth. But as an average person my experience has show me financial health is just as good.


Here are five simple things life has taught me about financial health.

Delay loans as long as possible - Cash is King
Unless critical, delay loans as long as possible and save as aggressively as possible towards your goals. Paying for expensive goods in cash can save you tonnes of money over the long run. forget what financial experts say about the cost value of money over time. For example if a piece of furniture cost $100,000.00 if you have the cash and choice to buy similar or the same product elsewhere most likely than not you may get as much as a 25% discount on the product. Should you borrow or hire purchase the item depending on economic environment its not impossible to end up paying 100% more for the same good over a period of time. This argument applies to all types of goods.

Borrow the least amount possible
Unless an item appreciates at a faster rate than the rate of inflation and the required profit margin of a leaning institution its make little sense to borrow to finance a purchase in the hope that over the long run managing small payment equate to the same value. So where  you can limit the amount you borrow to finance a purchase especially for an item such as a vehicle do so. Your cash most likely won't get the interest required to consistently beat inflation and product value is unlikely to appreciate fast enough either to beat loan interest rates.

Aim for the smallest loan interest rate
There are circumstances where its inevitable that you will have to borrow and as a result its critical you aim to get the best deal. One way to find such deals is to speak with all possible lending institutions and get from them their rates. While this is possible its not always feasible. One interesting website I once came across for Jamaicans that compares loan options and interest rates is called RateBee. If you must aim for the lowest rate. A 2% difference in interest rate over the long run can be significant.

Aim to repay loans in the shortest possible time
The simplicity of this observation doesn't need too much elaboration. The sooner you are out of debt the better. The goal here is financial health and while shorter loans tend to attract higher interest rate the sooner you are free of a debt the less burdened you will feel once it is paid. Once it is paid that frees you to save or allows you to have added disposable income.

Work on a second income
One final observation to aiding with achieving financial health arise from an environment where the economy becomes challenging. Balancing personal income and expense can get tougher year after year given rising cost of living and a pay check that may not be rising as quickly. So what the solution? Be more productive. Consider finding a second job to increase income to give you that cash king advantage.

These are my indispensable experience for my financial health it can be yours too.

Translate publicity to prosperity.

Exchange Rate racing away.


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