Financial responsibility is about using the finance in a wise and responsible attitude. A responsible attitude towards finance is spending as well as saving with the aim to grow money beyond the expenditures. This is a habit of utilizing the money on way that is beneficial for both the individual and family interest. Unnecessary spending and paying less attention to the changing need of finance will caught people in great financial stress. Protect yourself before everything is out of control.
Those who go with the planned budget, allowing themselves to have a cushion for some emergency expenses too are always those who remain happy with their pocket. First thing about careful spending is analyzing basic needs and luxuries, basic need cannot be avoided but luxuries can be fulfilled depending upon the surplus funds available after meeting all basic needs. Sacrificing needs for fulfilling luxuries will left you with nothing but rising level of debt which will deteriorate your financial situation in the longer run.
Spend by keeping basic needs at priority and keeping a fund even in small proportion separate for saving and investing purpose.
Budgeting the monthly expenses, evaluating the income resources and then planning the spending as per priority are a sign of responsible financial behavior. Leave a sum equal to monthly expenses to a side and invest the remaining money in short term investments like bonds and share and cash it with profit whenever required. Reinvesting the amount earned as profit in buying some long term asset like property or building in case you have earned capital gain. Leaving the money in the drawer without the aim of multiplying it would be foolish ideas in this period of time when there are open choices of investment are available with more market diversity. You can have a diversified portfolio of investment at a time depending upon the amount of surplus income involved.
Financial responsibility also requires an alert and conscious mind while planning the investment in profit oriented activity. An ideal profit oriented activity is that which yield high return at low risk. Time duration for waiting for the return also is the ley concern. Many people have earning styles in shape of employment as well as part time business. Diversified income opportunity always keeps you in better position in case one activity is not generating positive results.
Retirement planning is part of financial responsibility in which you plan today what will you require when you will get retired from job after 20 years and which source of income will then be easy for you. Would you able to do 8 hours duty with one day off in a week? Certainly not, what you will require is a time with your friends and family rest and tension free mind. To have relax in future when you would not be able to go for work because of your age, is the only option if you know how to spend and save today. To have a peaceful future time spend your energy today for financial planning. There are varieties of financially responsible policies available like pension funds and insurance policy.