How to stay debt free

When we have so much debt, we must be worried. The phone ring often and we do not want lift the telephone up. It must be from the bank or credit company card that asks us to pay the debt down. 
That is why; we should be always debt free. Another reason to stay debt free is the cost of the debt is high. We should pay the principal and the interest that may increase in the future.
The first step toward stay debt free is to know your financial goals. Each people know what are the most important things for them. Write the goal that they can reach in short term, middle term and long term. The goal helps you to manage your money. You know very well where you spend money to some posts. On the other hand, if we have no financial goals, we spend he entire money fast. 
Second, you must build an emergency fund. Allocate six times your monthly spending that you can save at liquid investment. We can use the money when we need the money immediately. Some people use the money when they got fired. They do not have to owe money from other people or bank.
Three, do not owe other people’s money. The ultimate ways in staying debt free is not to owe other’s people money. Settle down soon your liability. The debt may increase your monthly spending. Without debt, you can save more and use the money for other purpose.
Sometimes people need debt to buy the big things such as house due our salary may be not enough to buy the house. The mortgage may help us to get the money however you should not use mortgage if you are not sure you can settle the mortgage. Some people buy mortgage but hey do not consider the money.  A person who want buy mortgage must be able to fulfill daily needs, paying bills, and other things.
Do not think you will settle the debt when you add the debt. Some people use credit card to buy mortgage. In my opinion, by using credit card you make a snow of debt that will crush you. You should increase your income before buy the mortgage. There are so much you can do o increase your income. You can do some side jobs or you can be a freelancer.

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

Protect you from high inflation

Some Asian country has high inflation. Inflation is a economic condition when the goods and service price increases. It makes the money weak. We must provide more money to buy the same things. For example, last year, you can buy a cup of coffee for $5. Today, It price is $ 5.5. The coffee price increases up to 10 percent.
Certainly, you have to provide addition cash flow. Most people prefer to cut "unnecessary" spending to keep the live. However we do not have to cut the spending if we can anticipate the inflation. Here are some steps that you can do to protect you from inflation.

1. Buy gold or other precious metal such as, silver, platinum, palladium, and else. Gold are believed as the most stable commodity in the world. No one can manipulate the gold price due it is rare and important. In this year, the gold price is skyrocketing.
We can sell the gold anytime especially gold bar. If you want to buy gold, you can use 5% to 20% of your portfolio.
2. Pay the debt off
As the consequence of inflation, the bank or other financial institution will increase the interest rate. The debtor must be hard to pay the debt off due to its interest rate.
Use cash rather than credit card. The credit card company also charge high interest to the holder. 
3. Cut some spending
This is the most ultimate to face with high inflation. You can use coupon to cut your spending meal or pampers.
Buy your meal, meat, and vegetable in bulky at grocery store. By buying at grocery, you can get discount. You do not have to the market often and it can thrift your money. Place those foods at your refrigerator for weeks. However, some food such as vegetable and fruit will be wilted in few days. Some vegetable also will be dried in a week.
4. Buys some defensive stock
The defensive stock still give you return no matter the economic condition. Shift some risky stock to defensive stock. Certainly, you should not put all money at the defensive stock only.
5. Buy actual product
I have ever bought a scooter for $ 260 in 1997 when the crisis beginning. After graduated from bachelor degree or 2003, I sold it for $360. I realized that I cannot get benefit from the scooter but I have protected my money from high inflation.