We often hear that time solves everything, when in reality time often aggravates everything. Failure to tackle problems at the right time and at the right time may prove to cost you dearly. In fact, all serious financial problems started out as small problems. If attacked at the time they would be solved by the root …
What is the Cause of Financial Difficulties?
Are the financial difficulties you are experiencing structural or punctual? That is, is the source of the problem identifiable by a timely situation, or can it not perceive what it is doing wrong? Any of the situations are serious and need urgent response, but when the problems are structural it is important to start by making a thorough diagnosis to your financial life: what is the total of the income (all)? What is the total cost (all)? The difference between income and expenses will give you your net worth. With this exercise of calculating your net situation will be mirrored where the imbalance is and thus start to define ways of acting to correct the deviation.
What Expenses Are Adjusted to the Family Budget?
It is caricature, but people’s needs are indexed to the level of their income. There are those who say that certain expenses are essences to live, when next to it may be someone who has not even thought about the possibility of having this expense. We increase the lifestyle and it is very difficult to make an adjustment down. For example, how many people put in the essential expenses about € 40 in telecommunications (seemingly very economical promotional packages) when there are so many people out of this country who live their day-to-day lives with DTT and a telephone in which they do not gasp more than € 5.00 / month?
We must ask ourselves how we were able to live comfortably on a smaller household budget and now it seems impossible?
Increased income is an opportunity to caution the future. It is not necessarily an obligation to increase the lifestyle and to take certain expenditures as necessary for the new condition of life. If we had reacted in this way, the Portuguese would certainly not have so much personal credit with benefits so unbearable for their family budget .
How Will You Improve Your Personal Finance?
The ostrich attitude, of bury the head in the sand, does not allow to cure any financial disease. Unfortunately many people take time to take on their financial problems, even when the symptoms are already more than evident.
The Typical Symptoms of Financial Problems in Your Personal Finance are:
- Inability to pay on time and hours essential expenses such as contracts for water, electricity or gas.
- Frequent use of fractional purchases through credit card .
- You need to use your account overdraft on a monthly basis.
- Debts to Finance and Social Security – Delays in the payment of taxes or Social Security are often cause for very painful liens for citizens.
- Bank debt – Failure to pay, or even delays in installments, implies default interest and commissions that further increase the cost of the loan. The more time you let pass, the more difficult is the regularization of fouls.
What is the remedy?
The symptoms described above evidence that there is a disease in your personal finances that has to be treated. To correct it is necessary to go to the origin of the problem and to remove it from your life. There are financial advisory institutions that may be the key to treatment.
To take better advantage of the intervention of these consultants try to do your part, namely:
- Have a daily household budget;
- Eliminate expenses that are not essential to life;
- Free yourself from what you do not need and even who knows how to do business with it;
- Acting in the treatment of your credits in a global way: consolidated credit can be a good solution;
- Study competition offers and negotiate better conditions on insurance and telecommunications contracts or ask for a discount;
- Check if it is worthwhile to join the electricity and gas operator in one.
Do not wait until tomorrow to resolve your financial problems. Whatever you can do today do it!