Easy ways to improve personal economic situation

The economic meltdown make people suffer. They need more money to buy the entire necessity. Every people struggle to get out from the bad financial situation. They work more hard in order to multiply the income and they believe it will help them. Here are some ways to improve your economic situation:

1. Work
Over 95% people makes money from work. Only few people who do not need work to make money. They may have so much asset and inherit.
2. Spend less than you can earn
It is the rule of thumb of finance. We are forbid to spend more than the income. You must borrow your money when the spending higher than income. This is bad habbit and it could make you bankrupt soon or later.
Do not placate your want. Just fulfill your essential need such as food, cloth, transportation and else.
3. Budgeting
Allocate your income to pay the essential needs. If you have so much excess money, you can save more money. The saving must be important for future. You can use it when you retire or when you do not work again. The excess money can be allocated to investment too. Do not spend the excess for fun only.
4. Seek out other income
If you have high income, you may fulfill your need easily. However, the company fire the employee due the economic downturn. The employee supposedly find other ways to make money. They can start business. It does not need large fund to start the business. You should have hard wish to materialize it. 
5. Avoid credit card
Prefer cash than credit card to buy anything. You may not get discount by using cash;however, you do not have to pay the interest or the administration of credit card. In Korea, the credit card make so much people bankrupt. The Korea almost fall under the credit card crisis. Fortunately, the Korean government was sprightly to anticipate the crisis.
Some people are tempted with credit card. They unwisely use the credit card to spend anything that they want.
6. Pay off debt
Before proceeding with any purchases, you are better to pay off the debt. You may postpone to purchase DVD, gadget, clothes, shoes, bag, and others. You can postpone to have the items but you cannot postpone to pay off the debt. Your debt will increase fast and you might not pay off it. The creditor may seize your house or car that you use as guarantee.
Read Also:
Money Management Easy
five advice to become millionaire

Benefit of learning budget

What for we learn the budget? It takes much time. We may spend money to learn the budget by asking the private teacher or financial planner. Perhaps, we also buy book to learn about budget. Though, you will find some obstacles, you will find that learning budget can give you some benefit.

1. You can understand and recognize what your spending is? We often unrealized to spend our money for food because we enjoy food. With learning budget, you can analyze where your money go out.

2. Know the goal of the budget
Some people just said that they want to be wealth. They want have house, car, and pet but they do not know what kind house, car and pet. You can set the specific goal either short term goal or long term goal. The short term goal is a small goal that you can reach in less one year. For example, we want to buy a refrigerator that cost $ 600. We can collect $50 every month. 
3. You can manage the money well
The budget activity is to allocate the money for some spending. You can elegantly share your paycheck or income to entire of spending. Your salary will be enough for one month. Some people cannot pay off the spending even they get hundreds of thousands dollar a month.

4. You can make budget spreadsheet
To record entire of the spending, you need spreadsheet. The spreadsheet can make your work easier. We just type the spending and the amount of dollar. We do not have to make the table manually. For next month, we just copy and paste the file. Surely, you might adjust some spending or income items when you need it.

5. You can teach other people about budget
The best ways to learn is to teach someone. You can teach about the budget after learning the budget. Teach your spouse first, he or she will understand the budget. He or she will understand why you stick on budget. You can also teach someone to make money.

6. You will not forget your money
A husband order the wife to pay the electric bills. She forget to do what the husband order. She forgot to pay the bill for a month. Fortunately the electric company does not cut the electric supply. She use the money for buying cloth. If she has budget, she will never forget to buy the electric bill.
Read Also :
The truth about debt consolidation
How financial goal impact your financial planning

The Key of Financial Savvy

People try to reach the financial savvy. They buy so much asset to makes more money. They can make dozen of thousand easily in a month. While the others are difficult to make money. The crisis make the asset value decrease but the liability rise. 

Asset is something that you have. This is the most important of financial savvy key. Solomon is the most rich man in the world.He has so much gold in his deposit box that has so much key. The number of asset that you have equals with the wealth.
With the asset, you can make money. For example, You can hire the store to the retail shop or cafe. The tenant will pay you monthly or yearly, depending on the contract. The asset is the requirement for borrowing the money. The bank or financial institution will ask your asset as the guarantee. They can seize your asset whenever you cannot pay off the debt.

Liability is the something that you have to pay. You may have mortgage loan because you want to buy house in credit. You may settle your debt for twenty years later. It is hard when you should pay the house cash unless you inherit so much money from your parent or you win the prizes.
The credit card that you use to buy anything is a liability. You should pay the bill at the end of the month with interest and administration fee.
Most people have liability include the rich man. They owe the money to multiply the asset. Some businessman must have liability either short term liability or long term liability.

The Expenses is also the key of financial savvy. When your expenses are higher than the income, you will bankrupt soon. Reduce the expenses as you can by deleting the unnecessary items. You should reduce the gasoline expenses or transportation cost. Use the public transportation for it that cost just $100. The cost could be either higher or lower, depending on the distance.
You should live below your mean which means you should not be extravagant. Use the simple product rather than luxurious product. You do not have to use the brand product that price is higher than the generic product.
Alternatively, you can seek out to boost your income such as side jobs, teaching, blogging, selling online, and so on. Blogging does not take much time to do it. Use your time after work hours for writing once article a day. You may generate $1000 per month.
Read also:
Investment in Collectibles
How to create strict budget

9 Benefit of Budgeting of your money

To manage your money well, you should have a budget. However, some people are not interested with it. They are lazy to create a budget though there are so much benefit in budgeting the money. Here are the benefit of budgeting money.
1. Organize your money well
Though an employee get $120,000 per year, he cannot saves any peny. He used to spend entire money. Sometimes, he borrow the money from the parent. The employee cannot manage the money well.
2. Help us to save
The budget encourage us to save. No matter how much money that you can make, you should still save your money. Earmark 10% of the salary for your saving. You are better to save your money in front which means you save the money once you receive the money.
3. Focus on the goal
The aimf of create goal is to reach the goal. For example, you wan to buy Nintendo in one year. In the budget, there is a post that dedicated for Nintendo.
4. Aware your money
A man who does not create jobs may be confused when the money almost spending out. He do not know where he has spent the money. He become curios that someone near him has stolen the money. He ask the wife, or child about the money.
5. Free from debt
The Budget help you to settle the debt. The budget may not increase your income to pay the debt but it can help you to manage your money so you can pay off the debt immediately. Most budget that people create is to prioritize to settle the debt than spending money.
6. Protect you from stress
By budgeting your money, you know where your money spend. Therefore, you should not stress with the loss of money. You must spend it at some spending items.
7. Early warning
The budget is an alarm that remind your finance is running out.
8. Determine take the debt
Should we take the debt? You can take the debt if you feel you can pay it. Check the budget. Is there excess cash that you can use to pay the installment?
To me, I prefer not to borrow from other people. I just want to save for buying something or starting a business.
9. Communication with people near you
You can tell to children who ask something big that you have limited cash. Your kid may be understand your situation.
Read Also:
Four Financial goal mistakes
What should be included in Financial planning

How to Set Goal to make money

As the crisis lurk, people try to make more money. They want to reach wealth. The afraid that the crisis can fail their goal. To setting the goal, you can make these things:

1. Think of yourself
How much money that you have today. You can also write down the asset that you have today. The asset is a fuel to make your money. For example: We can hire out the house to the tenant and receive the rent fee every month or evey year.
2. Think of the goal
What is your goal? Do you want to have a house? Compute how much money that you need for the house. Let say the house price is $250,000. You should consider the interest rates too.
Do you think you can reach the goal? Or, Is the goal attainable? It means you can reach the goal.
3. Plan the action to make money.
where you will get the money? Do you find side jobs? Working to other place after work hours. It can generates hundred dollars. Teach the tutorial to make $70 to $ 100 per hours. If you have some experience in jobs, you will be not difficult to do that.
Seek ot the ways to make money. You can start opening business. Write the business plan before starting the business.
4. Saving and investing
To reach the long term goal, you may not able to reach in one or three year. You should save first the money so your money can be gathered so much. Save a hundred dollars a month. You will get more than thousands dollars in dozen years.
Then, invest the money to profitable investment. The investment can grow up your money in long term. Your money might be doubled or tripled. Invest your money at Dividend Reinvestment Plan or DRIP and do not withdrawn until the time that you have set. Example, you hope the DRIP return can finance your kid education for next 17 years.
5. Life expectancy
In developed country such as United States, Europe, and Japan, the life expectancy is higher than underdeveloped country. This should be consider for setting your goal. The higher life expectancy means the more money you should make. When you become older, you should have money because you do not work anymore. You might depend on your saving or your investment. It will be better when you own the business that can finance you when you become old.

How to protect your family by protecting your income

 to protect your family by protecting your income
All family should have income to fund the daily necessity. The child may need college fee that is very expensive moreover the the child want to enter the medical school. A medical school course fee is higher than other major study such as technician, economic, culture, and others.
Unfortunately, we also face with uncertainty future.
Our saving could running out at the time we should use it for the kid college. We have to plan the course for kid; however, the economic crisis occurs. Our investment may decline due the market index fall to the valley.
Therefore, we have to protect our income to protect our family. We can also do like this:
1. Stream your income from various income
Most people feel safe with one income source only. They think $ 300,000 per year is enough for their life and retirement. You can start the business before late. Do not wait until you retire. Sacrifice your time and money to build it. After years, you might get benefit from the business. You just receive the money while you still work for the company.
Side jobs may be a good idea to increase your income. When you got fired, you can do more side jobs. Be a trader. You can sell the cloth, bag, shoes, or anything else. A man with selling skill will never starve unless he lives at far place.
2. For the future, you will need not only retirement fund but also investment. The retire man may help you to life simple; however, you may need so much money.
Invest your money at the stock company. Research any prospective stock that can generate high return. It is not difficult to find it. Most brokers know the better stock. You should also invest your money at various stock and do not invest at one stock only. Create a protfolio that contain different stocks. When a stock down, the other may increase. The portfolio can reduce the market risk.
Do not put your money at stock only because there are some others investment such as bond, ETF, and mutual fund. Those investment has different characteristics.
3. Life insurance will not protect your life. The life is God business we cannot change the God will. The insurance helps the people that has been leave by someone. They can get some money from the insurance company. The child can continue the education. They still have house and they do not need to sell if for their live.
Read Also :
How to cope family member
How to budget to saving

Understanding debt ratio : Knowing the debt that can harm you

To apply a new credit, you need to tell the debt to income ratio to the creditor. They will check on how much your debt now. They want to make sure that you will pay off the debt on right time. They want to donate their money to the debtor who are not able to pay the debt.
Some people people whose has so much debt often propose the credit to the bank or mortgage loan. They want to pay the spending for daily necessity. They have no money anymore to buy the bread, oat, meat, milk, egg or fish. For this kind people, the bank will not lend the money.
The debt to income ratio is also an indicator of the financial health. When you have so much debt, you must be not health. You should cure it by paying off the debt soon. Surely, you are forbid to use debt for paying other debt. You should find money to pay your debt.
To calculate the debt to income ratio, you need to list the debt first. Most people have mortgage loan that they should pay it every month. Let say your mortgage loan is $800 per month. Perhaps, your car in garage is a lease car from car lease company. You have to pay $ 600 per month. You also have debt to pay the motorcycle $50 per month. Compute of the debt that sums $1450.
You can check the income that you stream. Most people receive routinely paycheck from the boss. Let say, you got $ 1500 per month from your boss. Beside paycheck, your boss often give bonus to you $ 300 in average. You also have some business. Let say you got $1000 per month. Compute all of your income $1500 paycheck, $300; bonus, and $1000, business; results $2800.
To get the debt ratio to income, you should divide the debt to income. The result is $1450 / $2800 or almost 50%. This ratio is very high. I am pretty sure the people cannot pay off the debt so the financial institution will not give the debt again to him.
The maximum debt to income ratio is 35% which mean over 35% is very bad. To fix the debt to income ratio, you should increase the income. Find sides jobs to add your income. You can also develop your business to stream more income. You can also decrease your debt too.