Financial well-being is more than numbers on a spreadsheet. It is about freedom, security, dignity, and the ability to live a life aligned with your values. In a world shaped by economic uncertainty and changing lifestyles, money management has become a critical life skill rather than just a technical discipline.

“My Way of Viewing” was created as a space to explore financial wisdom, practical money strategies, and ideas for living a life that is not trapped by debt but supported by thoughtful planning. Finance is one of the essential pillars of a balanced life, along with emotional, spiritual, and physical well-being.

I have always believed that learning from different perspectives helps us grow. Conversations with fellow thinkers and bloggers allow us to explore personal finance beyond formulas and into the realities of everyday life.

In this discussion with Good Nelly, we explore financial behaviour differences, smart money habits, debt management, emergency savings, and the meaning of financial empowerment, especially in a world shaped by the COVID-19 experience.

Nelly, do men, and women have a different approach to their finances and money management strategies?

Yes, I feel that usually men and women have different approaches to finances. Mostly, men like to take risks, whereas women are relatively more cautious and give importance to security. In most households, men take the initiative of managing finances. However, statistics say that the life expectancy of women is relatively longer than that of men. Therefore, women should take an active part in managing household finances.

Women are more cost-conscious. However, in general, women earn less than their male counterparts. So, even if they can save more, it’s less in amount. Several pieces of research reveal that women can save about 10% of their salary, whereas men can save about 8% of their income.

Talk to me about how to live like a rich person on a budget is one of the most amazing money management strategies?

There are several money management strategies. You don’t have to be a millionaire to enjoy the life of a rich person.

Here are a few money management strategies you can follow:

• Drive a second-hand high-end vehicle if you want to
• Take a note of the discount sale times and buy branded garments, or you can buy branded garments from outlet stores too
• Shop at the end of the day to get lucrative discounts; one shouldn’t compromise on eating healthy to live like a rich person
• Keep a note and travel before or after the peak season; the hotel rates are relatively lower that time
• Hire designer attire, instead of buying them, to attend parties

Above all, try to increase your net worth. Plan your finances such that you can have a better financial future.  

I have paid my monthly credit card balance since university. What are the dangers of making only the minimum payment and using the credit card as your checking account?

It is one of the primary reasons to fall into debt if you make minimum payments on your credit cards. When you make only the minimum payments, the interest gets accrued on the unpaid balance every month. So, outstanding balance increases. With time, it becomes difficult to repay outstanding balance and you have to look for a suitable debt elimination plan to repay dues. So, always try to pay back your dues at every billing cycle.

Avoid using your credit card like a checking account. When you use your credit card to take out money, you have to pay an extra charge, a cash advance fee. Why will you waste your hard-earned money like this?

Debt is a scary word. I always talk about good debt and bad debt, What is the difference?

Being in debt is not good. Even a good debt can become bad if you can’t manage it properly. However, there are some good debts like taking out a mortgage loan or a student loan. A mortgage loan helps you to buy a home, which in turn, helps you to increase your net worth. But, you should manage your home loan properly and pay it back on time. Likewise, a student loan helps you to earn a degree and secure a good job.

However, bad debt may be a payday loan or a credit card debt. When you can’t repay a payday loan on time, you have to pay quite a high interest on it. And, if you don’t clear your credit card balance at every billing cycle, you have to pay interest on it. Therefore, it is better to avoid such debts. But, credit cards help to build credit scores; only that you need to repay the balance at every billing cycle.

The COVID 19 crisis has taught us to save for a rainy day. I believe in saving at least three months. What is your opinion on this?

I always suggest having an emergency fund worth about 5-6 months of your living expenses for your rainy days. So, calculate how much you spend every month. Try to save about six times that figure into your emergency fund for your rainy days.

During this COVID-19 pandemic, many people are losing jobs. An emergency fund can come to a great help during these tough times.

And, be careful of not using your fund unless it’s a real emergency. And, when you use the fund, try to replenish it as fast as possible.

Help me understand what women empowerment means to you?

By women empowerment, I mean being self-sufficient and being able to make correct decisions without anyone’s help. By financial empowerment, I mean women should be able to manage their assets and money. They should be able to plan a budget through which they can save a decent amount of money every month. Single women should be able to make good decisions to grow their money to have a better financial future. And, as a couple, a woman should be able to make decisions for the financial well being of the family.

I am a big believer in having our emotional, spiritual, mental, and financial aspects of our life balanced. Please comment?

Yes, absolutely. I always believe in balancing life, balancing personal and professional life. We have to strike a balance between our emotional, spiritual, mental, and financial aspects of our life.

If we are emotionally not happy, we won’t be able to look after the happiness of our family members and concentrate on work. So, achieving emotional and mental stability is a must. Everyone needs to have ‘me’ time to attain emotional and mental stability. Spiritual stability can be achieved by helping others and forgiving others. One should live life according to certain principles set by himself/herself. Financial stability can be achieved by planning a realistic budget and following it. It can help to be financially secure and live life stress-free. In turn, it helps to achieve mental stability too.

There are times we need credit and financial counseling. Talk to me about the advantages of this?

When you can’t manage finances on your own, you should go for credit and financial counseling. A financial counselor can assess your financial situation and offer suggestions and tips by following which you can manage your financial life in a  better way. When you can’t manage your finances even after following the advice, a credit counselor can also offer a debt elimination plan in the form of a debt management program, through which you can repay debt with professional help.

When you go for counseling, you get to know where you’re doing wrong, which you might be overlooking. So, you can consult a good financial counselor when you want help to manage your finances.

A financial counselor can help you avoid debt or solve debt problems, offer budgeting tips, and advice for a better financial future.

Money can be used as a positive force in our lives.  Help me understand this statement?

Money is a positive force in our lives. When we can manage our money well, we can live life stress-free, which in turn, improves our physical and mental health. We can see money as a result of our hard work. We have to work hard to earn. Growing money denotes that we have better money management skills. When you respect money, you can make your life organized. By this, I mean you have to track your money regularly. Money also increases your self-esteem. When you can increase your net worth, you have the power to look after yourself and your family, not only now, but in the future too.

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