Financial problems occurred not because of your income that is less than or smaller but more because of your ability to manage finances. In essence, financial problems occur when greater expenditure than income that you get. So, is not measured by big or small salary you get.
So if you feel you are being troubled financial condition and in need of repair, you can cheat 7 solution below.
1. Checks Financial Condition
With the financial condition, you will know what financial problems you really are. Is the financial problems you face because of too much spending unnecessary or because of debt.
If you know the cause then you can finish it in a proper way. If too much consumption, you automatically have to reduce consumption and if because of debt then you stop owe and pay it as soon as possible so that the flowers do not increase your financial trouble you.
2. Compose Budget
If you already know the financial problems, the next step to solve your financial problems is to develop a personal budget.
You can start by making a record of income and expenditure. If there are other expenses outside the list, choose based on the priority scale. Do not force to buy today because it will increase spending.
In essence, this list is made is to determine your financial ability to meet the needs and prevent you from wasteful. You can create this list for a month, three months, six months or a year.
3. Pay off Debt
Just a reminder, we recommend that you do not mortgage debt exceeds 30 percent of your income. If more than that, it is feared you will find it hard to pay off your debts.
Well, if you have debts exceeding these portions then immediately pay off, especially debt alias nasty high-interest debt. For example, credit card debt you have interest in above 50 percent in a year to pay it off then immediately to avoid further financial burden on you.
4. Choose the Right Investment
If you have paid off the debt, try to make an investment. This method is more advantageous than you wear it for shopping.
After all, if you invest in the right products, the yield that you get will add to the coffers of money to you, is not it? To find the right type of investment product, you can ask the experts and investment should be done in the long term, for example over five years for the yield you get higher.
5. Select Insurance
You should set up since the self-protection products, both life insurance and health insurance that is pure without being mixed with the investment because the benefits be maximized and the premium you pay will be more efficient.
Having an insurance product will greatly assist you in keeping expenses when you are ill because the cost of treatment is now passable to drain the bag, especially if to be hospitalized.
6. Have the Reserve Fund
The reserve funds are also very important for dealing with unforeseen risks, such as termination of employment or accident. We recommend that you have a reserve fund of about six times the salary you to survive when layoffs override until you get a new job.
Set aside at least 5 percent of your income for savings after suffering reduced tax–. May also when you get a raise then save half of the value of the salary increase as a reserve fund.
7. Change Bad Habits
If your financial situation has not improved and healthier after doing some rescue efforts then you need to change your bad habits in using the money.