ROHNERT PARK, Calif., May 31, 2018 /PRNewswire/ -- Financial health is all about balancing wants and needs. Deciding whether a purchase is a want or a need can help mitigate unnecessary spending. Rent, bills, and food are needs. That new smart phone might be a want if the current phone still works or is still being paid off. Student loans and other debt required to be paid off are needs. Being able to differentiate between needs and wants can help individuals with tight finances keep their spending under control. Ameritech Financial, a document preparation company that assists borrowers with federal repayment plan applications, reminds borrowers to cover their needs first, then turn their spending eye to savings goals and wants.
"Student loan borrowers might believe they need higher income to be financially healthy, but that isn't necessarily true," said Tom Knickerbocker, Executive Vice President of Ameritech Financial. "A high income might be nice, but lower incomes can achieve lasting financial happiness."
Retail therapy might make individuals believe that buying things they want will lead to happiness. However, a recent article described hedonomics, or the study of happiness in relation to money and stuff, and suggested that frivolous spending only provided short-term happiness. Instead, the authors recommend spending on needs with an eye for quality. The article also pointed out that income levels are not directly proportional to happiness levels, meaning those with a low income can still be happy.
While student loans can cause financial stress that can get in the way of that happiness, even those with a low income have access to federal programs that may help. Borrowers with federal student loans who struggle with high payments or low income, or who have large families and associated expenses, may benefit from federal income-driven repayment plans (IDRs). Such plans base payments on income and family size and can end in forgiveness after 20 to 25 years of enrollment. Any reduction in payment can decrease financial stress and allow borrowers to focus on their needs.
"At Ameritech Financial, we help borrowers understand IDRs in the context of their financial situation," said Knickerbocker. "And while we can't directly influence our clients' happiness, we hope they feel less financial stress with our help in preparing IDR application and recertification paperwork."
About Ameritech Financial
Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of consumers with financial analysis and student loan document preparation to apply for federal student loan repayment programs offered through the Department of Education.
Each Ameritech Financial telephone representative has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).
Ameritech Financial prides itself on its exceptional Customer Service.
To learn more about Ameritech Financial, please contact:
5789 State Farm Drive #265
Rohnert Park, CA 94928
Spending for Wants Versus Needs
SOURCE Ameritech Financial