The 5% Rule: Money Management at Its Oldest and Finest

Money ManagementThe reasons people fall into debt are repeated time and again in financial articles and other relevant material. Simply put, it comes down to mismanagement of money and thinking that credit is actual money. More than that, it speaks volumes about how many people cannot handle financial responsibilities they voluntarily got for themselves. The only thing left to do is help them get out of debt and with the many options available today, one can manage their finances down to the smallest detail.

But, does it really have to be like that? In hindsight, the five dollars that a person saved by getting coffee from the office kitchen instead will make little difference. Yes, every amount counts in saving to pay for debt, but it does not have to be as excruciatingly intricate as this. Furthermore, people turn to ‘experts’ for insight, but sometimes all these people do is complicate things further.

When it comes down to it, actually putting money aside is still the best way to manage finances. Of course, paying debt will require the most money one can make. This is where Rapid Loans and other quick lenders come in: they provide money that will act as a bridge between life in debt and life without it.

Accepting the Consequences

Debt is a calling card for a change in lifestyle. No one in their right mind would acquire more money to retain a way of living than pay off debt, which is what is so baffling about this study. The point is to get out of this situation as quickly as possible and compromise plays a big part in it. The only consolation is that this is temporary.

The 5%

To use a loan to pay debt is viable. To rely on the loan for everything would be a waste. The way is to set aside 5% of one’s salary as savings. It may seem to be challenging at the beginning, but the secret is in the consistency. To be familiar with a lifestyle of having less is one of the most effective ways of dealing with debt efficiently.

If it takes more than this, it is because a person owes way more than they are capable of handling. Debt is already complex enough before people even get to dealing with it. Keep it simple and straight, and there will not be any further complications.