how to overcome financial problems

To control for personal and family resources can be a particular challenge. Credit or debt could seem the easiest solution to overcome the financial problems quickly. You can use debt as an asset, but if not careful can lead to painful consequences.

For some others, they are always trying to find a larger revenue to tackle financial problems. Financial experts say that in order to overcome financial problems relating to the awareness of the source of money and spending and a willingness to make informed decisions. Therefore, the solution to solve the financial problem is to create a budget.

Prepare the Budget

Creating a budget is not difficult to learn. One is a list of revenues and expenses list. Then keep your expenses exceed income, as the saying goes pegs instead of the pole. By creating a budget will make your life more enjoyable and rewarding experience. What can you include in the budget?

Revenue

The first you need to make is a list of income. Generally that will go to this list are salary, interest from savings accounts, deposit rates, and so on. Record only the regular income that you would get each month.

Avoid entering an uncertain income or non-routine within your budget. Some income is uncertain include overtime, bonuses, prizes, commissions, even though THR. The financial consultants warn that a plan based on uncertain sources of income can make your debt. However, if you occasionally have uncertain income, such as overtime pay or bonuses, then you can choose to use such money to treat yourself and your family, travel, or a donation.

Expenditure

Compile a list of expenditures is not as easy as making a list of income. It could be that you are trying to record every expenditure to see the financial waste that occurs. However, you should make a list of monthly expenses if you know your spending habits. Some important things that must exist in the list of expenses such as basic necessities. This includes food, housing, and clothing.

Do not forget to include the periodic routine expenses such as expenditure per three-monthly, per annual mid, annual and other periodic expenses. Examples for the payment of home insurance, car tax, or income tax. However, to put it in the monthly list, you need to divide that amount by the appropriate number of months.

Then for any expenditure, you made the weighting or priority. If you find you are spending amounts greater than or equal to income, then you can eliminate or delay some of the expenses you have listed. It would be very helpful if you divide every expenditure by weighting as an absolute necessity, the need in question, or just a luxury that would like to have. This method will be helpful, if at any time your income is reduced due to the changing situation. You can quickly get rid of some who still doubt the need or a luxury only.

Savings

However, the most important one in the list of expenses that is savings. Although many people may not think of saving as an expense, it is wise if you are part of your monthly income budgeted for emergencies or special purpose. At least, you should set aside 5 percent of your income has been taxed to save money. If not, you have to make tough measures. Get rid of credit utilization, rearrange your lifestyle, and consider your basic needs. Strive to put savings in your monthly budget.

Your success in carrying out your budget largely depends on how realistic the budget. The idea is that the list reflects your personality and your choices but still realistic. If you create a budget too small and is unable to meet their household needs within a month, then certainly all that you've compiled will not run.

Debt

Many people think that the loan could be a solution in the form of debt finance. However, uncontrolled debt can derail your efforts to live according to your income.

Certain types of debt can be an asset. For example, long-term debt to purchase assets such as homes continue to increase in value can be beneficial. In contrast, credit card debt used to finance day-to-day life can be disastrous. Hold fast to the principle not to pay even a dollar of interest expense or credit card. It is a credit card can simplify your life, but always be careful when using it.

If you have a credit card, pay off your credit card bills promptly before any interest. Financial experts recommend to pay off credit card debts even if it means you have to sacrifice your savings. Try to think logically, that does not make sense to get into debt with high interest rates while maintaining low interest savings. This is tantamount to waste. Be wary of the burden of credit card interest charges!

Keeping it Safe Financial Condition

Create a budget and get out of debt you need to do it seriously. Once you get out of debt credit card or other short-term debt which is not an investment, then you can start trying some of the following practical steps:

Reserves Money

Always provide financial reserves at least as much as six months of income. This reserve could be a savings or other investments easily cashed if needed immediately. If the situation changes, for example, you get fired, then you will have sufficient funds for at least six months while you apply for new jobs. Conversely, if you get a raise, tabunglah half of the salary increase.

Large debt

If you want to owe to the investment, then try to carefully calculate the amount of the mortgage. Installment debt should not exceed 30 percent of the salary man. If you are a spouse who works full, simply count the mortgage debt of the husband's income alone. Then enter into the budget that you have made to evaluate whether it was reasonable for the debt or credit.

You can significantly reduce borrowing costs by paying a higher down payment. But you should be saving for that far in advance to include it in your family budget. Low initial cost burden could mean a lower credit costs.

Family Communication

Other success factors in running a financial planning is good communication between family members.

Develop and implement the budget may be the only tool that can help you to cope with financial problems. Avoid debt, and if you already have credit card debt, paying off immediately. You always set aside funds for savings and investment. Thus, you can overcome your financial problems.

Lots of people who have problems of lack of money. Though their income is pretty significant. Bete, is still lacking?

Most people to overcome this is by working harder. And the latest news, the HARD WORK DOES NOT SOLVE THE PROBLEM you! Hard work okay, but it is advisable to add one more, that WORKING SMART!

Continue, whether the Work Smart Financial problems can be resolved? Yet!

You need to learn a Financially Smart. This reply is not found in schools in general. Such that, many people who think that "it is difficult for the rich", "venture capital needs," and so forth.

What Is Financial Intelligence?

Financial intelligence is the solution of your financial problems.

Financial intelligence to solve all your financial problems and other issues. Too bad if the Finance Kecerdasa not sufficiently developed to solve financial problems, the problem will still exist.

Problems do not go, it is often times worse and cause other problems. For example, someone planning a retirement fund. If they fail to solve it, it would be a terrible problem with the berumurnya them and the more money which they need for life and health care costs.

Would prefer did not like it, money affects the lifestyle and the quality and comfort in life.

There are three ways of handling financial issues:

1. Poor way to overcome financial problems.

They assume, that they are the victims money. They feel the only who have money problems. They assume, that if they have a lot of money, their problem will be solved. Their attitude toward money will reply to the problem. The attitude of those who create their own financial problems. Their inability, or avoid actions will only prolong the list of their financial problems. And the problem will be even greater as a mountain. Instead of getting rich, they are actually getting poorer.

2. Middle Class way to overcome financial problems.

While the poor become victims of money, the middle class is the Prisoner Exchange. The fix is ​​very unique. Rather than address the financial problems, they spend money for more schooling in order to find a secure job. Bereka experienced. They make enough money and have the job market is relatively safe. However, dilubuk the most in their hearts, they know that they are stuck in financial problem and they lack the financial kecerasan to escape from the prison of their office. They appreciate more job security than financial challenges. Rather than being entrepreneurs, they are actually working for the Entrepreneur. Instead of investing, they even gave money to the management of financial experts. Instead of improving financial intelligence, they hid themselves menyibukan office.

3. Rich way to overcome financial problems.

In the process, they are not working alone. They work as team work in addressing the financial problems faced reply. Have experts who are able to solve financial problems. And they become more financially savvy and equipped to solve the financial problems which arise in the future. The rich do not stop, they are learning. By learning, they get richer. It is this which have no other ..

Taken from various sourced.