Commonly Asked Questions about Finances- Part 1

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Freedom Hub
Commonly Asked Questions about Finances- Part 1

Money is a very important tool in our lives. Every normal person takes notice of it and is taking it seriously. The subject of money raises curiosity in many people. That is why this series is about commonly asked questions about finances.

In this episode we shall focus on two of the commonly asked questions. Firstly, we shall have some scriptures about the issue of finances. Then the questions shall follow.

Text: 1 Timothy 6:9-10

1Ti 6:9  People who want to be rich fall into all sorts of temptations and traps. They are caught by foolish and harmful desires that drag them down and destroy them. 

1Ti 6:10  The love of money causes all kinds of trouble. Some people want money so much that they have given up their faith and caused themselves a lot of pain.  

1. How Bad Is It If I Don't Pay Off My Credit Card Every Month?

Not paying off your credit card every month can lead to high-interest fees and can put you at risk of getting into debt. Additionally, it can negatively affect your credit score, making it more difficult to get approved for a loan in the future. This is because when you don't pay off your credit cards every month, you are essentially taking out a loan from the credit card company and accruing interest on that balance. This can quickly add up and lead to debt. Additionally, when you carry a balance on your credit cards, it indicates that you are not good at managing your finances, which can make lenders less likely to approve you for a loan in the future. For example, if you applied for a car loan and you had a balance on a credit card, the lender would be less likely to approve you for a loan because it would indicate that you are not responsible with your finances.


2. What Does a Realistic Budget Look Like? 

A realistic budget should include all of your necessary expenses such as rent, utilities, food, and transportation, as well as other expenses like entertainment and saving for the future. It should also account for any variable expenses, such as medical bills or car repairs, that you may encounter. Finally, it should be realistic and achievable. Setting a budget that is too strict will only lead to frustration and can even be counterproductive. It should be just challenging enough that you have to be mindful of how you're spending your money, but not so strict that you can't enjoy life or save for the future. The process of setting a budget is like taking a journey. You need to have a destination in mind, have a map of what you need to get there, and leave room for stops along the way. You don't want to rush through the journey or take too many detours, but also make sure that you're taking the time to enjoy the scenery and make the most of the trip. 

I hope the responses to the above two questions are adding some knowledge to your life. Indeed the issue of credit cards should be well noted. Use them properly. Finally, a realistic budget is very important in your life.

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