Personal Finance Apprentice

There is no healthy budget without constant vigilance

There is no healthy budget without constant vigilance

There is no healthy budget without constant vigilance

It’s been said that genius is one percent inspiration and ninety-nine percent perspiration. And when it comes to personal finance, it’s roughly the same.

Keeping our finances healthy requires constant discipline. And today, we have guest blogger Daniel to talk more about that effort.

Debt is all around us. It can swallow whole companies, state budgets, and human dreams. Yet, without it, many great individual and collective achievements would be impossible. Don’t let all the pressure and difficulties coming from the financial system get the better of you.  The longer you wait, the fewer options you have at your disposal. Meet the challenges head-on, even if you are in over your head.

Two sides of the coin

Ordinary people weren’t educated on how to apply for a loan or negotiate with the bank. Nobody taught us to set our budget and save money. That’s why so many struggle to understand the financial market and how does the debt work. They don’t know their own rights, so no wonder it all ends in financial ruin.

But borrowing money is not all that bad. In fact, there are good reasons to do it and there are some bad ones. Taking a loan makes sense if you are investing and expecting a return. If you are going to spend it on a new car or clothes, think twice. Don’t fall for the glamour and luxuries just because you can afford them at the moment.

Deal with it

Many people just don’t like dealing with banks. They have a feeling they will end up with the short end of the stick. Make sure to form a solid relationship with the bank instead, and find out how much they charge for their services. Pay attention to the minimum balance that the bank sets for customers.

Many people make the mistake of not going through all the terms and conditions of the bank’s services. Be vigilant, because interest rates and standard rates are subject to change. If you are not satisfied, it’s not like you are stuck with one bank for life. Check the free complaints procedure or switch banks and find the one that better suits your needs.

Points of interest

Don’t start celebrating yet, because a healthy personal budget requires some additional measures. So, create a list of all your savings, liabilities and spending. This will open your eyes and give you an idea where to make adjustments. Limit the spending first. Use the extra money to pay off debt as soon as possible because interest rates can push your debt even higher.

Furthermore, try to maximize your income. Change your ways and show some discipline. Focus on your career, find a way to earn money online, or sell your clothes and stuff on eBay. Set your budget and see how much you can spare to pay off the debts. Remember that once you set clear goals, dealing with the debt is much easier.

Charging extra

If you are borrowing some money, do it based on some wise planning, not future hopes or present whims. Deal with banks as you deal with retailers when you buy your must have items. You are the customer who wants a product and you want a good one, never forget that. To resolve your financial difficulties, take time to educate yourself. When it comes to the financial area, it’s important to know the facts and figures. If you are really confused designate a member of your household to be the “finance manager”.  But don’t wait to be cornered by your debts. Eradicating them is a top priority which will help you take charge of your life again. And there is no time like the present to pull that off.

After almost a decade spent working at various assistant positions, Daniel believes he has accumulated enough experience and knowledge to start his own small business partnering with close friends. His family had it’s fair share of paying off credit cards and of the anxiety that comes with it.  When not researching about business matters, he likes to read contemporary fantasy novels. You can follow Daniel on Facebook

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