Handling Money and Financial Stability (Essay Sample)

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Reflective Paper: Handling money and Financial Stability
My Relationship with Money
The results of “What’s Your Money Personality?” quiz have correctly tried to describe my relationship with money. I am always cautious with how I spend money and what I spend it on. It is not that I am stingy or mean, but I do strive to live within my budget to avoid life stress. I am always on the lookout to grab any opportunity that would help me save some little amount of money monthly. For instance, I always compare the prices of groceries among different stores before purchasing in the store that offers the best bargain.
Preparing a shopping list is also a rule of thumb I observe when going out shopping. Having a purchase list ensures that I avoid the temptations of impulse buying and purchasing what is essential. I also have over the years to learn to live without the extras. It was, however, not easy in the beginning because I love good things in life, like keeping updated with fashion. I have learned to embrace a simple and frugal lifestyle. I realized that I was spending a lot of money unnecessarily on purchasing clothes. I aim to save as much as I can when I am still young and invest in a business that will guarantee my future financial freedom.
My Financial Situation in the Past
Being too generous to a friend whenever they ask for money to sort emergencies was holding me back financially in the past. I often felt guilty for not helping friends whenever they ask for financial help. I usually strive to at least take a soft loan from work or relatives to assist friends in solving out issues related to financial emergencies. I later came to realize that those I helped were taking my kindness for weakness. They would come with unfulfilled promises of paying the amount of money I offered at a later date. Most of those I helped out of good heart never paid back the amount they owed. I sometimes ended up servicing soft loans that I never used in the first place. I realized that that the urge to help out whenever friends approached with their emergencies was because I always had a lot of cash at hand in the house. I decided to open a fixed deposit account with a local bank. The bank account helped as the banks always sent me a reminder message of the amount of money I am expected to deposit every month. Therefore, I always with money that could only take me through the month instead of having excess cash in hand.
Another thing that had been holding m back financially in the past was mindless spending. I was not living on a budget, and it was thus impossible to keep track of items to give priority when making a purchase. For instance, I was always available to go on a night out with friends for drinks and dates. The miscellaneous purchases were wrecking my budget and found myself borrowing to sustain my lifestyle. I was being paid an average salary like any other person in my career, yet I was always broke. Although I have not given up dining out altogether, I have created a meal plan and limited dining outings only on weekends and special occasions.
Lessons Learned
Some of the things I learned in class include handling money. Maintaining a high degree of financial discipline enables one to achieve set monetary goals.