Isn’t it true that no sooner we earn money than expenses crop up? Recall when household repairs were needed at the same time you earned your 13th month pay. Or how about the time when a medical bill presented itself just as someone was about to pay his long outstanding debt to you?
The seeming simultaneous occurrence of earnings and expenses is actually not a coincidence. What we fail to see is that expenses are scheduled to happen whether we earn money or not. It is just that income especially for an employee is spaced every 15 days such that its arrival is much celebrated (spacing may be wider for some businessmen). The celebration is just cut short when money is scarce or when people are living payday to payday. Living on the fringes of financial preparedness leads to financial hypertension.
Medically speaking, a person is said to be hypertensive if either the systolic or diastolic measurement of his blood pressure is high. Systolic measures how hard a person’s blood pumps against his arteries. Diastolic measures how hard a person’s blood pumps against his arteries in between heart beats or when his heart is at rest.
In personal finance, the systolic is measured by how hard a person pumps his spending against his budget. The diastolic is measured by the rate of inflation that hits a person’s wealth even if the person is resting from spending. And just like with blood pressure, a person is considered financially hypertensive if just either his financial systolic or diastolic is high.
To avoid financial hypertension, live a healthier financial lifestyle and religiously take anti-hypertension maintenance medicines.
Living a healthier financial life is the prescription that will cure the current ailment of living on the edge. It will involve inculcating the discipline to save and avoid the occasions and places of spending. The financial anti-hypertension maintenance medicines will come in the form of minimizing downside risk through getting life insurance and investing periodically as early as possible to provide a multiplier effect to savings (and more than beat inflation).
But don’t forget that like medical doctors, financial doctors have to do some preliminary tests and analyses before the appropriate prescription is given. What may be good for one person may be hazardous to another.
By the way, there is a direct correlation between being financially and medically hypertensive. And hypertension can lead to heart attacks without warning. Take care of your heart. Live thewww lifestyle: wellness, wellbeing and wealth.
(Originally written by Efren Ll. Cruz, RFP at http://www.savingstips.com.ph)
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