How do you handle your hard earned finances?
July 25, 2017 8:03pm CST
Last Saturday, our professor asked the reporter the reason why some school teachers are always in debt. The reporter answered that it was because school teachers just receive their salary once in a month. She further added that if the salary will be given every 15th and 30th, then the teachers will not have a problem in terms of budgeting their money. Our professor said that it was wrong. The main reason why some teachers get into so much debt is that because they do not know the proper way of handling money. She suggested to us that instead of spending money then saving the rest, we should have a different strategy. It should be saving first then spending. What is your opinion about this? How do you handle your hard earned finances?
9 people like this
• United States
26 Jul 17
I don't know about your country, but in the US it is because teachers DON'T MAKE ENOUGH! In my district, we are paid every 2 weeks. I have the money directly deposited into our account. My husband then uses it to pay bills, put into savings, etc. I have no idea. I don't do the bills. I could never survive in the area where I live on my own just on my salary and I've been teaching for 16 years. The price of living is too high and teacher pay just isn't enough.
27 Jul 17
The professor is right. It is not a matter of how much you earned but how you spend the money. I know a lot who are earning six figures a month but they are drowning in debt. I also know who earns minimum wage but they have savings.
26 Jul 17
@Platespinner I agree. Regarding with your fist statement, I have observed some people who are hesitant to get a credit card because it is prone on spending a lot of money, and they may fall into big debt easily because of it. In my own opinion, I think credit cards will not put someone into debt. It is the way someone handles his or her credit card. If the person who is a credit card holder just spend it based on his or her whims, and forgetting his or her obligations to pay afterwards, it will definitely bring trouble. I only spend money using my credit card if I know that I already have a cash in hand.
• Winston Salem, North Carolina
27 Jul 17
@annierose I have a credit card and use it sparingly, but it has been a source of unwise debt in the past. I've got to be careful about convincing myself that I really need this now rather than waiting until I have the money for it.
26 Jul 17
I have the same opinion. It should be saving first and then spending. It's very common or employees to spend their hard end money the moment they received it. IN fact some of them already go shopping before they received their salary. It's a pity when you look at their bank account and they have nothing. A few years back, we have invested our money on real estate. That is before I even become a licensed broker and decided to put up our own company. I thought it was a really good decision. At the moment, we still do it. We own three lots, other than the house and lot we live in. We just sold our condo unit at a very good profit. I regret not buying three units before.
• United Kingdom
I used to work as a teacher and got paid once a month. It was hard to budget with only being paid once a month. Saving should happen before spending because it is sensible to have an emergency fund. I have spent too much on flights. So I am going to borrowing some money from my emergency fund next week. Then I can pay the money back the following month. I have a new emergency fund as well. I will be only using the original emergency fund.
• East Tawas, Michigan
28 Jul 17
This professor is wise in her suggestion, to save instead of spending. Then, if something urgent comes up, like auto repairs, there is excess money tucked away, for this unexpected expense. Getting paid twice a month, would make matter much easier, to manage one's money properly.