The top money management skills that can instil sheer financial confidence within individuals include budgeting, healthy credit score maintenance, and long-term investing. Apart from these, using mobile applications to consistently track daily cash flow is also considered a great skill to master.
Money Management Skills for People With Disabilities
The Indian Ministry of Social Justice and Empowerment stresses on ensuring that no individuals with cognitive challenges experience discrimination in any specific area of public life. Therefore financial concepts should also be conveyed to all with equal zeal to ensure they can make well-informed financial decisions.
Additionally, financial wellness objectives can be fulfilled much more easily when an individual has clarity about how to build wealth in the long term. Keeping that aim in mind, we have discussed certain skills that are well-proven to achieve successful money management for individuals with disabilities worldwide.
What Do We Mean by Money Management?
Money management is a collective effort comprising numerous elements like banking, budgeting, investing, tracking necessary expenses, etc. It is a managerial process that helps you to assess your financial standpoint by conveying the best return on investment for whatever amount is invested in earning money.
In simple terms, money management techniques are designed to cut off impulse buying decisions. Individuals and firms justifiably follow different principles to control costs associated with items that do not add significant value to their assets or long-term investments.
What Skills Can Simplify Money Management for Adults With Disabilities?
Understand the Various Forms of MoneyIt is important to acknowledge all forms of possessions in terms of a monetary equivalent and use them wisely. If you are new to money handling, chances are high that you are largely dependent on cash as it is highly liquid. However, it is also necessary to use unconventional cash substitutes like gift cards, cheques, money orders, electronic deposits, etc., as this habit immensely cuts down unnecessary expenses. Also, they do not come with any additional costs, and at the same time, provide perks like cashback and vendor-specific offers.
Set a Defined Budget for Both Saving and SpendingBudgeting helps to reflect the specific areas where you can probably curb your expenses. In clearer terms, a budget helps you to understand your needs and wants more precisely. Also, a monthly budget is decisive in ensuring peace of mind. When you see your expenses and savings going as per plan, you feel more content and can take up new ventures more confidently.
Cautiously Handle Debts
Proper settlement of loans on time is a crucial factor for money management for individuals with disabilities. Your credit report decides how easily your future loan requests are going to get sanctioned. Also, when you try renting a home, the landlord will check the credit history.
Many events may get hampered if you remain too reliant on credit facilities and ultimately fail to pay back the lender on time. It can even potentially crush your finances if you continue to incur interest and penalties due to payment delays. Thus, financial advisors recommend taking loans only to support big-ticket purchases and selecting the optimal tenure to keep other aspects of your annual budget secure.
Look for Additional Income Streams
Part-time ventures or side hustles that can be comfortably managed in addition to the main source of revenue will ease the load for you. Even if you are currently unable to find any opportunity, you can contribute towards a stable financial standpoint by adjusting the budget.
Also, there are other ways to compensate for a limited income, like grabbing barter or exchange deals. In India, bartering is an old custom where we can get utility items in exchange for unwanted stuff like old clothes, furniture, etc. Today, you can buy even big-ticket items like electronic appliances and motor vehicles in exchange for a significantly reduced cost. Such arrangements can add to your money management goals and make life easier.
Strive to Learn More About Money ManagementThe financial world experiences new things now and then. Therefore you need to stay in touch with updated money management provisions. You can achieve this by joining community organisations through social media. Also, many free online courses teach you to handle your finances effectively. As these are critical subjects, having an open conversation with others on how they implement various tips to spend as per budget will keep you motivated in your wealth-building journey.
How to Deliver Lessons Regarding Money Management for People With Disabilities?
Using WorkbooksYou may take the help of workbooks that present exercises targeted towards igniting one's problem-solving abilities. These books facilitate easy communication and put forward common scenarios in daily life. Individuals who have difficulty in executing various cognitive functions can take help from personnel working in rehabilitation centres to solve these problems and earn the life skills required for sustenance.
Providing a Practical ExperienceA great way to help someone learn money handling is actually letting them spend some money in real as per a set budget. Later, you can review their performance and discuss what changes could have been made to control the expenses. Such activities can be easily executed during holidays when the person will find more time and space to communicate their thoughts to the shopkeeper.
Taking Help of ApplicationsApplications have been designed especially for users who struggle to manage their finances daily. A trusted family member or caregiver can explain the app’s performance and give live demonstrations. It will help individuals to take well-informed decisions in a real-world setting.
Getting the Person Well Acquainted With Crucial Sight WordsYou must explain the meanings of certain keywords like "budget", "total expenses", "cash only", "discounts", "ATM", etc., to people with disabilities. Even the workbooks, as mentioned above, share quick notes about these terms. Knowing these will solve nearly half of the problems they face in real-world money management.
Tips to Achieve Financial Independence for Adults with Disabilities
To ensure a life where they will require no external support in terms of monetary well-being, differently-abled individuals must follow the following tips:
- Gain Proper Education: Though some discriminatory people will always be roaming around, giving off negative experiences, they should not get the better of you. Disabled people can seek proper education in schools, colleges, and institutions with special provisions for them.
- Get a Job: Human Rights Commission and many organisations working towards empowering the disabled population make sure everyone gets a job as per their set of skills. Also, quotas are available for various job positions, so staying aware of such news is important. Employment will generate peace of mind and create a beautiful sense of independence and prosperity. With the aid of money earned, one can go for necessary surgery and fix their disability problems if possible and even get back to a more superior course of life.
- Learn About Tax Saving Options: Long-term investment options like NPS and PPF will help individuals save a considerable portion of their annual income from falling under the taxable bracket. Therefore they can secure the future by saving at least 5-10% of their monthly income by opting for these safer investments. The rest of their money can be distributed in other aggressive investment instruments and for daily expenses.
Money management for individuals with disabilities almost covers all the general notions that must be followed to create a financially secure future. In addition, just a few extra steps must be taken by the health supervisors or family members entrusted with their overall responsibility. The first step should be to instil confidence among these individuals. Then they have to practise whatever is being taught and eventually make improvements in the process.
FAQs on Money Management Skills for People with Disabilities:
To develop a positive financial mindset, revisiting the plans you previously jotted down with your goals is crucial. Then it is important to follow a solution-oriented approach. Instead of feeling stressed regarding factors that are out of control, take action in areas that can improve your financial well-being. For example, getting existing loans repaid earlier will help you focus solely on your upcoming objectives.
Under no circumstances should you spend more than you earn. Following this simple hack can help you build wealth in the long term. Not only will it ensure sound financial health, but it will also reduce your mental stress.
To overcome poor money handling, you must first identify the root causes. This means that you must be able to find out areas of impulse purchases. A good strategy to reduce these poor habits is to make sure you deal in cash instead of digital money.
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