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.
12 Key DevOps Programming Languages to Still Popular in 2022
“DevOps is not a goal, but a never-ending process of continual improvement.” – Jez Humble Delivering the finest of services...
Festival Fashion Style Tips For 2022
Summer is well and truly here and with that comes the festival season! From the biggest stars performing on stage...
7 tips on how to organize a budget-friendly move
If you are planning a move any time soon, you might be worried about all the expenses that wait for...
Metal Roof Colors: How to Select the Best Color for a New Roof
Choosing the right type of material for your roof is enough of a hassle already that the question of choosing...
Simple Ways To Feel More Confident At The Gym
If you are new to the gym, or you haven’t been in a while, sometimes you might not feel completely...
Can You Use Residential Property for Commercial Use
Having extra income, constantly flowing in can make all the difference in the current economy. Getting creative with how you...
Running a Business? How to Minimize Supply Chain Issues
Supply chain issues have always been an issue for businesses but over the last few years, the effect and widespread...
How to Increase Your House Value Before Selling
Increasing home value is the first step to making your place more attractive for future buyers. Whether you are trying...
Why Calorie Control Is Still The Best Way To Diet
There are a great deal of different options when it comes to dieting, every day there seems to be a...
The Benefits Of Trade Credit Insurance For Your Business
Trade credit insurance provides cover for businesses who trade on a credit basis. If the people who owe money for...
5 Charming Restaurant Decor Ideas In 2022
Making your restaurant memorable and stand out is a feat worthy of praise. The sheer pressure of wanting to succeed...
Bank Won’t Fund Your Business? 4 Loan Alternatives To Get You Started
Businesses typically require some sort of collateral or proof of concept before funding their business venture. However, it is possible...
Planning A Stag Do
If you’re a Best Man then you’re in a unique position of responsibility, and before the day itself when you’ll...
What Triggers Eczema | Tips to Reduce Eczema Flare-Ups
Eczema is a skin condition that can induce redness, itchiness, and skin inflammation. Its root cause is not fully understood,...
Women’s Fashion Trends To Expect In 2022
A new year means new fashion trends. We cannot wait for what is in store in 2022. It seems that...
Tech7 years ago
Creating An e-Commerce Website
Tech7 years ago
Design Template Guidelines For Mobile Apps
Business6 years ago
The Key Types Of Brochure Printing Services
Business2 years ago
What Is AdsSupply? A Comprehensive Review
Travel10 years ago
Who Else Wants Also Nfl Hat
General7 years ago
Kobe Bryant With His Unique Nba Jerseys
Tech8 years ago
Why Small Businesses Can't Ignore Mobile Technology
Tech7 years ago
Climb Google Using These Checklists