Thursday, February 6, 2014

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

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