Good Debt: Is It A Myth Or Does It Exist?

 

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Let's be honest, we all associate 'debt' with negative connotations. If you ever hear someone talk about this topic, it's rarely in a positive light. Debt is bad - this is a statement most of us will agree with without a second thought. 

However, what if it's not true? Navigate the various online financial resources, and you'll find whispering of good debt. What is this mythical creature? Is there truly such a thing as good debt? The brief answer is yes, good debt certainly exists. While owing money is never ideal, there are instances where it can be seen as a good thing. 

This throws up a new question; how do you know if a debt is good or bad? Here are a few points that help you work out the difference:

Are you in debt to the government?

Some debts are government debts, meaning you owe money to the people running our country. As noted by DTSS U.S. Complete Freedom, the government can impose charges and sanctions that put you in debt. Tax is a great example; many people are in tax debts due to excessively high charges and penalty fees from the government. Generally speaking, government debt is bad debt because you gain nothing from it. You pay a lot of money, but you see no direct impact on your life. 

Are you subjected to massive interest rates and fees?

Debt tends to be bad when you're charged huge interest rates and lots of additional fees. This is a problem because it basically means you're paying more than you owe. You've borrowed money, and it may have helped you out, but you're paying it back and then some. It leads you to a slippery financial situation as you might not have enough money to cover all of these extra charges. Things are made worse when these fees and charges are hidden and come as a surprise. Good debt will usually be easy for you to manage as you're on a payment schedule with honest interest rates that you can plan for. 

What do you get as a result of the debt?

Lastly, think about what you gain from the debt. I mentioned this when talking about government debts - what will you get out of the situation? In some cases, the benefits of borrowing money far outweigh the downsides of being in debt. The best example of this is borrowing money to buy a house. You will be in debt for years, but you gain something hugely valuable. You have a house that you can live in, meaning you no longer have to pay rent. This house is your property, so you can fix it up, add value to it, then sell it for a profit. Essentially, you've gained a financial asset from the transaction, so a mortgage leads to good debt. You could also argue that student loans are good debt as they help you develop your education and gain qualifications to achieve better jobs. 

Ultimately, good debt is not a myth! It does exist; it's just a matter of figuring out what debts are good and which ones are bad. Good debt is nothing to fear and can actually help you in the long run. 

Tips To Help Save Money When Buying A Property

 Buying a property is a great way to invest in your future and the sooner you do it, the better you can reap its benefits. However, this can easily be a process where you can lose a lot of money and it’s worth knowing the tips and tricks to ensure you can save where possible. Here are some tips to help save money when buying a property.

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Plan Ahead

Make sure you’re always planning ahead. That’s the best advice for anything in life because a lot of what we do in life will have some financial cost to it. Your own property is an opportunity to invest in yourself and to hopefully end up with a nice chunk of assets that you could downsize to and to enjoy the profits you’ve made from it. It’s important, therefore, to do a lot of planning and to ensure you have everything you need for your property purchase. Research is a good idea to help get an understanding of what to expect when buying a property, especially for the first time. It’s also good to have the right amount of money saved so that when it does come to buying a property, you have everything you need to cover both the sale, the legal fees, and the cost of moving.

Use Free Mortgage Calculators

Getting a mortgage is probably the most important part and so when it comes to looking for one, it’s good to do some shopping around. You should make use of the free resources that are online and that you can also get through the help of a mortgage broker. There’s plenty of free mortgage calculators online that can help you figure out what is needed to afford certain priced properties so that you know what to look out for. The MortgageCalculator.Org is a good place to start off your search!

Don’t Overstretch Yourself Financially

Financially, it’s important not to overstretch your budget of what you can afford when buying a property. If you’re buying a home that’s way too high in terms of repayments or the amount of time it takes to pay it off, you could be making a mistake in the investment and that might put you in a position where you need to rethink your situation. That’s not what you want when you’re in a home you love but can’t afford.

Take Your Time

The house buying process is one that you can want to be over as soon as you’ve found the property and you’re racing to the finish line. However, no matter how much you’re pressured to make a decision quickly, it’s important to take your time. Try to be patient with yourself so that you don’t end up making any rash decisions or mistakes that you end up regretting.

When it comes to buying a property, it’s important to help save money where you can and hopefully, these tips will ensure you save as much as you can. That way, you can spend it on your household instead.

5 Tips to Help Protect Your Hearing

 Looking after your hearing can be something many people overlook. It is a given fact that our hearing is taken for granted, and it is one of the main areas that can be neglected when it comes to taking care of your body.

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Hearing loss can happen to anyone and affect us all. There are many different hearing loss levels, and at times, the loss is so small you may not notice for a long time, if at all. However, making sure to get regular hearing tests is vital to help us understand our hearing condition and prolong it. No one wants to think they have done irreparable damage to their ears, but having regular ear health checks can help you avoid this or catch any issues quickly. Did you know you can request a hearing check when you have your regular medical check-up?

5 Tips for Reducing Damage to Your Hearing

Earplugs

When in the vicinity of higher decibel sounds, make sure to wear earplugs or noise defenders. Noises over 80 decibels can damage your hearing even if you aren't exposed to it for very long. If you are going somewhere where you know the noise levels will be loud or exceed safe hearing levels; then it may be worth investing in custom earplugs to help limit any potential damage to your hearing.

Avoid Using Anything In Your Ear

We've all been there before and had the urge to pop something in our ears to remove excess ear wax, remove water, or scratch an itch. However, putting foreign objects into your ear canal can cause damage that could affect your hearing.

Ears are self-cleaning organs and, as such, will remove any foreign objects and excess ear wax naturally without our intervention. Using items such as cotton tips or pointed tools to dig around inside your ear is always advised against limiting unnecessary damage.

Reduce Noise Levels

Consider turning down the volume on your TV or your music just a few decibels. Consistent exposure to loud noises over time will mean your hearing won't be as good as it once was. Avoid frequent visits to venues where the music is louder constantly and spend time with no noise around you when at home to help your ears recover from particularly loud events. 

Know The Warning Signs

Buzzing, ringing, pain, or immediate loss of hearing are all signs your ears have experienced trauma, and as such, you should always be aware of the damage these warning signs could be alerting you to.

If you experience any of the above symptoms consistently, you need to get your hearing checked for any damage as soon as possible.

Ensuring you are considerate when it comes to reducing damage to your hearing will pay dividends in the long term by helping you maintain your hearing for longer. Just a few small changes to your habits can help you in the future.

Finance Tips to Help You Improve Your Life as Much as Possible

 It is important that you take steps to do as much as possible to look after your money and get a better handle on your financial security. This is one of the best things that you need to make sure you get right moving forward, and there is a lot to consider here so it’s vital to make sure you have financial tips in place. 2020 is the perfect time to look after your cash, and this is why you need some tips.

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There are a lot of things that play a part in helping with this, and it is important to try to make sure you do as much as you can to improve your life with the right kind of money management. That’s why you have to use these awesome ideas to make the most of this right now, and to take things to the next level in terms of your financial situation. Make sure you focus on this as much as you can, and there are a lot of things that play a role in this right now. 

Your Money Mindset: Changing It Forever

 

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If you have been doing your best to avoid debt but always find yourself falling into the trap of credit card bills and not understanding where your money goes, it's all about how your mindset is towards finances. But what is your money mindset and how can you understand it, and also change your money mindset?

What Is Your Money Mindset?

It is your set of beliefs or attitudes towards money. It will be the driving factor behind how you spend and save money. A healthy money mindset can be as simple as understanding the freedom to spend but also knowing when you have to avoid a purchase. Ultimately, it shapes the way you feel about debt. This is one of the fundamental tenets behind programs like the Debt to Success System, where many financial organizations thrive on individuals' lack of knowledge. And this is where our attitudes towards money can be traced. If we view it as a never-ending commodity, this is why we get into debt.

How Can You Understand Your Money Mindset?

They say that if you can fake it till you make it, this will cause you to succeed. A study was conducted of over 10,000 millionaires and 97% of them believed they could become millionaires and that they could control it. This is what mindset is! Because what you believe will drive your behavior. So if you start to incorporate a better financial mindset rather than viewing money as the millstone around your neck it can open you up in so many other areas of your life. But in order to shift your mindset, you have to put certain things in place.

How Can You Change Your Money Mindset?

There are significant approaches to changing your mindset when it comes to money. It's not just about the here and now. But you've got to think about how your attitude to money was formed. Think about when you were growing up and what your parents did with their money that you thought was sensible and what you thought you would do differently. You can also think about your retirement and what you want it to look like. When you start to dream about certain things you want in life this will help you to make those dreams of reality. But this means you have to put the stops in place. It isn't just about visualizing it but it's about figuring out what it takes to get to that point. When you have a dream of what you would like to purchase it's got to be tangible enough to motivate you. When you start to figure out what you want in life, you will then start to change your behavior and incorporate things into your life to make it a reality.

As a parent, we want to find ways to feel free from debt. And for all of the techniques out there, the most empowering one is changing your mindset. Once you learn how to have control over this, you will feel the difference in every area of your life, not just in terms of your finances.