Sunday, April 21, 2013

Personal Finance - Tips and Support

In this article we will discuss personal finance and how people manage their money. Personal finance is something that many people still do not feel educated enough about or able to understand. This can cause many problems when people find themselves unable to manage their finances and unaware of just what help is available.

While most people over the years have relied on social help i.e benefits or pensions, this isn't something which can be relied upon as much today or even in future. This has been the case since the recession began and the cut backs took effect.

It is important when working out your budget each month that the person paid first is you followed by priority creditors (mortgage, secured loans etc). There would be no point in giving creditors the money you need to live and then having to go further into debt just to survive.

This is an important factor when working out your budget and it must be done. If payments are not made to priority creditors, then you could find it harder to get out of debt in the longer run.

It is important to make sure that you are protected against any changes which could cause debts to arise. This may be as a result of sickness which could reduce income or a family incident which could mean an increase in expenditure. One way which people can secure themselves against these factors is by having a savings account. By putting money way each month when times are good it can reduce the impact when you are struggling.

While there are fewer jobs than before due to the recession it may be worthwhile looking for a second job if you are struggling financially. This could offer the extra money needed to solve any money worries you have and may be a short term solution.

While most jobs are not able to pay enough to balance out the cost of living due to the recession, it could still help you put a little extra money in your pocket each month. The income from one job may not be enough to pay for the rising cost of food, gas, electricity etc which is why it is important to consider other options for income. This could be mean a second job which is part-time or even finding out if you are entitled to other benefits. The more options you have financially the better you may be prepared for the future.

Those who have money aside at the moment may have enough to start considering an investment into the property market. With house prices at rock bottom prices, if you have available income you can get a good deal if you are purchasing a house. This could be seen as an asset for the future or even just as extra income through rent. Another good source can be online as new innovative business options are arising all the time. It is advised though that caution is taken when looking online for extra income as people have found themselves the victims of scams.

Why Personal Finance Mastery is an Essential Life Skill That Everyone Needs to Master

Personal finance mastery is something that you must master. I'm not just talking about having a good pension or stock portfolio, I'm talking about much more basic money mastery. Find out more in this article.

The Day Job

Think about your job. You work every day for someone else and take home an average amount of money every month. You wish you could earn more money but you can only do that by moving job.

Even if you move job, you still wish you could earn more money even then! But you are pretty much powerless to do anything about it.

You Are Being Exploited

Think about it. Your company is owned by shareholders or directors or even a single owner. Whatever the structure, somebody is at the stop.

They don't employ you out of the goodness of their heart. They do it because they can make more money out of you than they pay you to do the work.

Otherwise they simply wouldn't employ you!

You are basically being exploited and paid less than your true worth!

Redress The Balance

Your aim in life should be to get on the other side. To become the producer and employ others to do your work. You don't need to be rich to do this. You want to aim to become your own boss, control your own work and take all the profits home yourself instead of distributing them to others.

This way, other people can't rip you off and leave you with the crumbs at the end.

Internet Marketing - A Salvation

15 years ago if you wanted to start your own business then you had to invest a lot of money. Pretty much the cheapest thing going was direct marketing where you post leaflets to people.

In today's world of the internet, you can easily set up a website and start making money from day 1. These are not scams or illegitimate earnings - this is about you having a website and essentially helping people out. You don't even need to spend a dime!

I know this because I started doing this and making money and now I work full-time!

Analyzing Your Personal Finance

As you are reading this article, you may already know the majority of people who overspend. The best way to prevent this bad habit (overspending) is to analyze what you spend. It is as simple as that.

The first step you need to do is see where you spend. Even if you are a high-income earner, your big salary will still get flushed down the toilet quickly if you do not track your finance. Know where your cash is flowing.

Should you keep notes of your spending? If you the following is true for you, then you have to.

- You know you are not saving much money to achieve monetary goals (if you have any)

- You have the intuition that your bad habit of spending is spiraling out of order. Suddenly all your income seems to disappear to unknown locations.

- A major event in life is about to happen. This major event can be marriage, quitting your day job to start your own business, having an offspring and retirement.

You may not need a spending analysis if you are a thrifty person. You already have the good habit of saving at the first place. No analysis is necessary at this point.

However, bear in mind that you do not need to keep track of everything till documenting takes up much of your time. In this case, tracking becomes meticulous. Instead, do the spending analysis in a way it reminds you of where your money goes to. This is a smarter and better way to analyze your finance.