The lessons learned to become financially responsible usually begin at an early age, taught by parents to their children in the hope that one day the information will be useful to enable a better life with a bright future. For many people however, to become financially responsible takes years of trial and error in the area of handling money with a number of bumps in the road. Excessive debt, misuse of available credit and just plain foolish purchases are obstacles that need to be avoided in order to someday become financially responsible. In it’s most basic view, to become financially responsible means that an individual meets their financial commitments in a timely fashion by enacting a lifestyle and attitude that fosters and economic balance between earnings and expenditures.
An individual that is attempting to become financially responsible must take a long, hard look at how they live and what items available money is spent on. It is wise for every person to realize the difference between disposable income and monies that are earmarked for the necessities of life, and to keep the two types of funds separate from one another. Debts such as rent, food, utilities and health care should always take priority and should be paid promptly and in full upon receiving bills. To become financially responsible requires the creation of a personal budget that is to be strictly adhered without deviation, and the budget should allow a moderate amount of income to be set aside in the form of savings for emergency situations.
To become financially responsible means that an individual must learn to live within their means and stay inside of the boundaries of the financial plan they have created for themselves. There is an old saying that is an excellent motto to adopt and live by to enable financial responsibility – “It’s a pay as you go world, if you can’t pay, then you don’t go”. This simple view of personal finances is a wonderful way to avoid the concept of enjoying the present by mortgaging the future. Purchases should always be made with cash except for big-ticket items such as a home or car, and offers of credit cards should be shunned by a wise consumer to become financially responsible.
Lastly, to become financially responsible requires a constant awareness of personal money issues at all times. By maintaining a firm grasp on financial matters it is a much simpler task to avoid the pitfalls of accumulating personal debt, and a much smoother road to become financially responsible.