Basics of financial responsibility

The post Basics of financial responsibility appeared first on Oak Laurel.

When we hear an adult asking someone to be responsible, it is mostly about finances. To understand how to be financially responsible is very easy, you have to learn how to spend less than your earnings.

To live within your means and out of debts seems to be difficult in the current era. Why? Because of these credit cards and discount offers we call amazing. And have you ever wonder why you buy more than you want while shopping at the superstore? Well, the product placement is done in such a way that you end up buying things that were not on your list.

Now, enough with what happens, and let us begin with what should happen. Here are some basics of financial responsibilities you should know about.


First and foremost, get rid of that credit card you have imposed yourself with. Using a credit card is fun; when you just keep on paying without actually getting any money out but if you do not be careful, you may end up in some serious problem that you do not want yourself in.

For people who do not like to carry around cash than go for a debit card instead of a credit card. Most people build up piles of debts just to relax for a while which exactly the opposite of financial responsibility.


If you are someone who reads finance related article a lot, then you must have heard of this B word often. People often tell me how much they hate doing the budget, but I always ask them to wait and see what it is doing to their financial life and if being honest; the pain you bear with the budget planning is all worth it.

To form a budget it is important to know where your income is coming and where is it going. But if you are someone who just hates to do it than try using an app like MINT to make your life easy. Following are the ten ways to stay healthy on a budget.

  1. Involve your family
  2. Emergency fund for emergencies only. What people do mostly is save up for an emergency and use that amount on something that may be listed as luxury or midnight craving for pizza.
  3. List down the items you wish to shop whenever you are out, whether it is grocery shopping or you are out to buy some dresses.
  4. Benefit yourself with technology as much as you can by installing applications that will help you stick to your plan.
  5. Treat yourself every month. Try to assign yourself some allowance to keep you motivated for keeping you motivated.
  6. Make your money invisible
  7. Update more and renew less. Try to keep things updated at your house, if you find something wrong with your car or an appliance or see the paint peeling off, get your hands dirty with it that very instant and make things right rather than changing it entirely.
  8. Home cook meal is the best option for you if you are looking for being more responsible financially. Your cost reduces to 50% when you start cooking at home.
  9. Bad habits may cost you more than you think. If you are a smoker or drinks a little too much then know that you are damaging yourself financially and your health is at risk too, and that will cost you hospital bills too.
  10. Hunt for the discounts whenever you can.


When you plan out a budget, develop an emergency fund too. It will help you in dark times and if not that then you may end up helping a friend or a family member.

Just make sure to keep this amount at a safe distance but that too in your reach. What happens sometimes is that people use their emergency fund on things that do not matter than regret afterward because a midnight craving cannot be counted as an emergency.


Author Bio: Sarah Smith has been a personal finance author for the last five years. She is also an independent and very passionate finance and investment advisor. She regularly posts at


The post Basics of financial responsibility appeared first on Oak Laurel.

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