How to avoid personal finance crisis

The uncertainty global economic is increasing. The Greek debt crisis has influenced the world economic. Some Europe country also suffer debt crisis such as Portugal, Italy, and others. The crisis may affect your personal finance especially the investors who invest the outside. They will loss:

1. Pay your debt immediately and do not propose another debt
Set aside your salary to the debt expenses. If you have more money, you should settle the debt immediately. Do not ever let the debt hang your neck.
The mortgage has caused some people poor because they cannot pay it. The credit card can cause the financial crisis. Some Korean people in financial crisis due to credit card. We have to better throw the credit card now.
2. Not dependent on your boss, your parent, you brother and your sister
In economic tight when the company may fire you, you should find other jobs to fulfill your basic need. You must be able to predict whether the company wants to bankrupt. If they late or do not pay your salary for month, you should be ready to find other company or other office.
Some people feel comfort with the parent. They think the rich parent will support him or her forever. That people must be unwise. If the parent needs more money, they should payback the money soon.
3. More save
It is difficult to save more when the good and service price multiply. However, you should save more to anticipate the crisis. Saving money does not mean we save the money at bank or certified deposit. This investment is not profitable today. Saving at bank may guarantee your money but it cannot protect the value of money.
That is why, people save their money at gold or silver. The gold and silver price is skyrocketing at last year. I am also worry that people will hunt the gold so the price will be unreliable.
4. Emergency fund
The emergency fund can help you to finance your living cost in short time or six month. It depends on the amount of emergency fund. This fund helps some unemployment while they cannot generate salary. The unemployment must need transportation cost to apply new jobs. They also need paper and envelope for applying a position in the office. 
5. Find some free
There are some coupons in internet or newspaper. Use the coupon to cut your spending. You may just get a gallon of milk, a slice of pizza, a con of ice cream but it can save few dollars.
6. Change your lifestyle
The economic is tight, you have to change your lifestyle now. The generic product is better than the brand product now for you.
Read Also:
Protect you from High inflation
Pros and Cons Budgeting Your Money
The Benefit Of Owning the stock

Disadvantages of budget

Most financial advisers suggest us to create a budget that help us to control the spending. People can set how much spending for next month. They will spend any product and services that they have write before in the budget. Some people are success to decrease their spending with budget. They can save excess budget to piggy bank and then invest it at capital market.
However, the budget has also some weakness that we should know:
1. Budget is not flexible
Each people has different financial behavior. Some people cannot guess the next month spending. They just write the last month spending but they do not consider other things. Next month, they just buy what they have written on budget while they need to buy something else. It is not good to delay the spending while you need the things immediately.

2. Waste the time
For some people who does not have finance knowledge, they may confuse to build a budget. They may forget to record all of last month spending. As consequently, they always improve the budget every month and it waste time. Next month, the spending may also change so it must be changed again.
You should record what you have spend and what you have got every night. at the end of the month, you should  compute all of it and compare the budget. If your spend more than budget, you have to decrease the spending or increase the income.
If we have missed to record the spending in a day, the record will be fail. We must start to create the budget again and it takes time. 
3. Safe lifestyle decrease your lifestyle
Certainly, your lifestyle will decrease due its budget. We have thrift our spending and delete some "unnecessary" spending such as vacation, clubbing, and others. For some people change the lifestyle is rather difficult. They have to spend "unnecessary" things for their business. They may loss the client or business when they change the lifestyle.
4. Mismanaged life
Some budget creator is not able to allocate the most important things in their life. They spend the money to daily necessity only. They forget that they have to save for future. They may allocate the money to investment or saving.

5. incomplete planning
The budget is not complete and it is short sighted. The budget does not consider the future due it use the previous spending data.

6. Budgeting needs money
Some people ask financial planner to create the budget. As consequently, you have to pay the planner expensively.The financial planner is the expert who can create a good budget for you.