All over the world millions of people face financial troubles every year. The main cause of financial trouble is not lack of income, but tendency of over expenditure. It is important to have a clear idea of your income and your ability to spend because that helps you stay debt free. Too much use of credit cards to purchase expensive items and missing the credit card payment dates can lead to bankruptcy. In fact, there are thousands of people that apply for debt relief programs every year to stay out of legal trouble. In order to lead a debt free life, it is important to plan personal finance. In this article, I will focus on two things-personal finance and debt management or debt relief.
What is Personal Finance?
Personal finance is nothing but applying the principles of finance to take the money related decisions in a person’s life. It focuses on the ways a person or a family earns, spends and saves money. Personal finance planning also considers the future life events and impending financial risks that may appear with time. Successful financial planning is a dynamic process as you have to change your strategy time to time when income (salary hike) or expenditure (birth of a child) increases. Personal finance planning may include depositing money in savings account, retirement plans, investing money in stock market, income tax management and credit card expense management.
Financial planning is a major part of personal finance and it has 5 steps.
Evaluation: You can assess your financial condition by checking the income statements, property evaluation and money received due to inheritance.
Set the goals: Once you know exactly how much money you have, it becomes easier to set the goals to meet your monetary requirements. For example, if you have $10000 in bank and know that you will need $5000 to send your daughter in college 10 years later, you can start looking for ways to save money so that your bank deposit does not get reduced.
Set a plan: Financial planning is all about achieving the goals. For example, your goal is to accumulate $5000 for your daughter’s college fees and in order to achieve that goal you can create a plan. For instance, you can decide to reduce luxury expenses and find ways to boost monthly income.
Execute the plan: If you have decided to save $100 every month or invest $500 in stock exchange every year, then you must stick to the plan. It is easier to plan something and a completely different challenge to make your plan a success.
Monitor and adjust: You have to monitor your plan and make necessary tweaks to ensure financial security in future. For example, if next year a new life insurance scheme launches that promises to offer better ROI than your current stock market return, then you need to invest more money in life insurance.
What is Debt Relief?
Debt relief can also be called debt management. If you have spent too much and credit card companies are calling you constantly as you owe them money, then a debt relief program can save you from embarrassment. The debt relief service provider will negotiate with your creditors and try to give you maximum advantage. You will pay a fixed amount to the debt relief service provider every month and they will distribute the money among all the creditors.
How Personal Finance can Save Me from Debt?
One of the basic things that personal finance teaches you is that you should not spend more than you can earn. It stops you from frequent use of credit cards and helps you understand the difference between needs and wants. Personal finance planning also enables you to pay your bills on time. As a result, chances of overdue credit card payments reduce significantly.
Utilize the suggestions mentioned above and you will be able to lead a debt free life. However, if you are already in debt related trouble, then visit nationaldebtrelief.com to find a good debt relief plan for you.
Tips On Preventing Accidents In The Workplace and Keep Your Employees Safe
Preventing accidents in the workplace is both the moral and ethical responsibility of every employer. Knowing that there’s a safety...
4 Surprising Ways SaaS Can Be A Game Changer For Small Business
The World Wide Web will never run out of tips and strategies on how to grow your business. These days,...
Understanding SaaS, PaaS, IaaS Prior to Selecting One For Your Business
Summary: Cloud Computing is rising at a faster pace, and it’s crucially important for organizations to move to the Cloud...
5 Tips to Avoid Federal Tax Penalty For Taxpayers
When you are undergoing a tax issue, then it is vital to have knowledge of what are you up against...
Hygienic Cleaning Tips Before Moving Into A New Home
Buying a new home during a pandemic is not only a financial challenge but a sanitary concern. Namely, before you...
Spy App For Android A Tool For Keeping Workplace
Dealing with routine matters has been a lot easier and stress-free thanks to modern technology. Want to order food, use...
How to Create A Backyard Zen Oasis
The lifestyle of the modern era usually depletes one’s energy by the time they get home from work. Whether or...
Mistakes You Need to Avoid When Preparing Your CV
Writing a CV can be hard. You have to somehow condense all your experience into 1 or 2 A4 pages....
Home Decor Trends For 2021: What You Can Expect
This year, the Covid pandemic has had a huge impact on many different industries and sectors and one which has...
5 Ways to Protect Your Teeth This Christmas
Christmas is just around the corner and the preparations are well underway for the festive day, even if it is...
How to Create A Referral Marketing Program In 6 Easy Steps
You may have heard of the benefits of a referral program. Besides helping you attract more traffic to your website,...
5 Important Web Design Considerations to Make For Better SEO
Ever since the birth of search engines, practices in optimising websites for better search rankings have changed considerably. Where it...
4 Reasons For Your Teeth Becoming Sensitive
Having sensitive teeth can be a common issue for many, but it can also be a sign that you have...
How To Keep Your Business Clean & Sanitised
If your business offers any kind of public-facing services, then you will likely be thinking a lot more about the...
The Impact Of Covid-19 on Commercial Property
The lives of people all over the world have been completely altered as a result of Covid-19, with businesses struggling...
- Tech6 years ago
Creating An e-Commerce Website
- Tech6 years ago
Design Template Guidelines For Mobile Apps
- Business5 years ago
The Key Types Of Brochure Printing Services
- Travel9 years ago
Who Else Wants Also Nfl Hat
- General6 years ago
Kobe Bryant With His Unique Nba Jerseys
- Tech7 years ago
Why Small Businesses Can't Ignore Mobile Technology
- Tech6 years ago
Climb Google Using These Checklists
- Health7 years ago
Health Supplements For Sports Activities Nutrition