Friday, April 16, 2010

Financial Survival: Personal Guide

Money does not make you happy! This is the saying we knew from a long time. Many of the people around the globe consider it right and others wrong, each depending on his personal point of view about life. However, that does not mean it is not important and no one stupid or smart enough to argue about it, importance, and of course, it is a waste of time to talk about that.

An economic principle about income represents the source of the income with owning elements of production, which is three: Work, capital, and land. In addition, of course, the most common and prevalence is the work. The human effort no matter what is it. That means your income being determined according on two factors the price of it (for your work that is wage) and the hours you spend on it. In general, the prices of most jobs (wages) are limited and the working time that is available legally and naturally is limited too!

That forces us all to manage and distribute our money (income) to a certain number of products and services (cannot be exceeded) rationally and economically, anyways, the case is what to do? How can we manage the income? Let us say how to control how to control the expenses? These questions are just some thoughts of the whole case. They can drive us to many similar questions describe the globe concerns just in few words.

However, this article will contain some tips and ways to do and follow that may help, it will not bring money from scratch! Or, making you rich! It will just help you to have a better, healthy financial status.

Don't Use Credit Cards!

Most of the people around the world use the credit card for purchasing. In general, it is not a problem, but it becomes a problem if it is the only way to purchase and satisfy their needs. Credit cards usually makes the product lees valued, I mean you cannot evaluate the value of the product that is because the purchase is easier with credit card. In another hand the credit card is actually, a loan is given to through a different way, which makes the money less valued too!

For a simple reason when the cost is low and the supply is a lot then the price, value, and importance are very low. Usually those who use the credit card for every purchase they do begin to lose their priorities for buying and of course, addiction to buy, at this point the problem gets critical and needs a cure as soon as possible. However, credit cards are important in the daily life as long as it is being used properly otherwise money, a lot of money will be wasted.

Use Cash!

Yes! Always use cash. This method will help you to count and value your money much better in order to prevent yourself from purchasing useless and less important things. Because when you have your money in hand you feel it, you control it, you know the exact amount of money you have which means the exact limit of resources that you can spend on products and services. Simple word, you have full control and access to your money. One more thing that is very powerful, when using cash use it in big numbers. Don’t you ever keep pennies in your pocket. Because keeping your money in big numbers will make buying is much difficult for you. The reason of that is you can feel the money by facing a lot of money not couple of bux. Which makes the money (amount you have) much important for you. The other advantage is stop spending on small useless stuff that cost pennies because you do not have it you have big numbers only.

Make Priorities:

This step is really important and powerful because its about each one of us in personal. No one can control it or change but the person himself. Another thing, at this step each one has to build his own wish list according to his needs, which is very powerful when used well and rationally. Why? Simple, you are creating your own wish list, which means buying list depending on what you want and care. The point is dot keep money in your pocket if there is no need for it in future or today. As well, do not spend money on what is less important. Do not buy randomly, buy on plan! At the end, keep in mind that you have to take consideration of what you buy and when. All of that based on your budget in order not to break your financial status. For more tips, check this link.

Loses Before Gains:

What is the normal question will you ask when buying something? For sure, what do I gain from it? That is normal and right but you have to ask yourself another question as well. What do I lose from buying it? Usually most of us do not care about the dark side of the product or service before buying that is normal in general but before actions! In addition, looking at the flaws or loses of the product or service makes your decision quite right. Moreover, avoids you regret in future. Do not forget that is money is not always available some dark times may come. One last thing to make this point clear, do not let the bright light blind your eyes from the black dots!

Stuff You Should Never Buy!

There are things have no gain from it, cost a lot of money and it can be used for once. Worst of all some of them are harmful to the human body. Usually that may affect you in the future and of course cost you more money.



Ham meat

Fancy trademarks

Fast food


These things as I think are the most effective items that should be abstained from using. However the point is always avoid things that may affect you, even if in future, or used for once or cost a lot for its name.

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