The last time we gave tips to handle finances, it was met with a lot of positive feedback from you guys. Today, we’re giving you more tips on how you can handle your money right! Financial independence from any sort of debt or support is one of the best feelings there is on this green earth. So we want to make sure that we provide information that you can utilize as soon as finish reading this article.
Track Your Spending
We’re serious about this one. You really need to keep actual track of where all your money goes. This means hoarding receipts until the end of the day where you can list them down properly. This also means you need to spend a bit of your day tallying everything that you have spent that day.
Doing this will enable you to see where the leaks in your income pipe are! The introspection that you can achieve when you track your finances is the foundation of even better financial habits. You should start keeping a finance journal. Or you can download an app to make things easier.
Do Regular Lifestyle Checks on Yourself
While this is not the most pleasant task to do, it is truly necessary. If you think that your personal biases might get in the way, enlist a tough love sort of friend or family member to help you out. Always remember that you are doing this because you want to be in a better financial standing. While you may not always like what you hear or own up to regarding your lifestyle, you have to suck it up.
When you realize that there is a huge chunk of your life that is completely wasteful, you can use that knowledge to empower better financial decisions.
Never Neglect Your Sinking Fund
The concept of the sinking fund is that it is the amount of money that you will tap into if you ever find yourself in between jobs. Normally, the sinking fund is around 3-6 months worth of your annual income. This should be neatly tucked away in a bank account that is strictly hands off. Most individuals, who successfully have sinking funds and never used them, now have a neat amount tucked away. The best part: it accrued interest while it was just sitting there!
There is more to life than counting pennies, yes. However, there is no shame in making sure that you have all your ducks in a row—financially speaking, anyway. There have been too many financial horror stories that have been shared online and through family gatherings. It is time to take a better and more active role in managing your finances and not fall into the mistakes that previous generations have made.
Which tips are you looking forward to applying in your personal finances?
Egypt is a country that is rich in its history. It is a place where archeological wonders have continued to capture the hearts and minds of many. Egypt is also a country that is in the grip of the worst states of national debt.
This is coming off the April 2017 CBE (Central Bank of Egypt) declaration that the state of the national debt was reaching “critical” points. At the tail end of 2016, it was estimated that Egypt’s debt was at around $67 billion. This is a completely different figure from the $49 billion that was recorded in the end of 2015.
There are people in Egypt’s government that have expressed their opinions regarding the sheer number of government employees that are unsustainable. So those who do work for the government actually fear for their jobs. The experts are all saying that for the chance to start making difficult but positive dents toward lowering the debt, Egypt needs to make the tough decision of increasing its income taxation of citizens and corporations. The continued problem is the fact that for the everyday citizen, this can quite literally push them toward further poverty.
Not All Bad News
Slowly but surely, Egypt is managing to whittle away at its debt to the Paris Club. Members of Egypt’s fiscal office have given reports that the influx of foreign currency into the economy is helping to boost the struggling financial situation as a whole. There are also some foreign investors that are taking advantage of the low costs of operation and moving their businesses to Egypt. While this may not seem all that great for now, the eventual return of investment by allowing foreign presence is sure to come due.
While times are still quite difficult, Egypt’s citizens and her government are still trying their best to make do with a dire situation. There was a projected 6% growth at the start of 2018. While it may not seem like much it is still growth. Any growth would be seeds that can eventually grow toward better economies and fiscal turnaround for Egypt.
The debt that Egypt faces, as bad as it sounds, only shows the trend of getting bigger and bigger. The policies that are being enacted to try to counteract the interest alone are not working. When the job market is not that great, it makes very little sense to squeeze more taxes on the citizens that do not even bring home that much. There is a conflict between the taxation of the lower and middle echelons of their society as opposed to what the higher brackets of society are being taxed.
Only time will tell what policies will actually end up alleviating the pressure of the massive interest that the national debt is accruing.
The technology we have today is some of the best we have ever seen in terms of financial standards. There is a lot of software now available to help users with how they can handle their debt properly. If you are not familiar with such software, they are computer programs that are primarily geared toward organizing and keeping track of finances. They also provide computations that would allow users to plot their way out of debt.
Here are some stellar examples of such software:
This particular software is really good in helping their users keep track of their money. Not only does this help toward plotting an effective debt reduction program, it also introduces users to a budget system. So in effect, it helps you get rid of debt and simultaneously helps you establish a budget that you can consult. There are several plans that it can suggest as to how you can successfully get rid of debt.
Another particular thing that helps this software standout is that it has the option to be password protected. When you are going to be listing down your finances and where your money goes, it is important that you are assured that this information will be kept safe and sound.
Yes, this tool that you probably already have on your computer has spreadsheets that can help you get rid of your debt. MS Excel is built to carry spreadsheet options. These are templates that you can fill in with your information and Excel can do the computations on your behalf.
If you do not have MS Excel on your system, you can try out Open Office’s version of excel. They will still have spreadsheets much like excel does. While these may require a bit of input from you as the information does need to be edited to reflect your accurate information, it can still help you out with getting your finances in order. When you cannot make heads or tails of your present finances, always make use of the spreadsheets as you guide.
Handling debt does not have to be archaic or difficult. It also should not be something that you handle on your own. We all live in a time where our technology is highly available so it would be silly to not utilize it toward getting your finances in order. There’s a lot of debt management software that you can choose from. Just take your time when you pick which software would be a good fit for your particular needs.
If you have used any sort of software, which one did you use?
In the recent year or so, the word ‘bitcoin’ was pretty much causing a buzz in all financial circles. Wholly digital yet managed to reach $2000 in its prices. So many of us asked: is bitcoin an investment risk worth taking?
What is “Bitcoin”?
Bitcoin is digital currency that was something that needed to be ‘mined’. In the early days of this currency, it was something that users had to ‘earn’ by answering a sort of algorithm or math problem that was given every X amount of hours. Now, bitcoin is something that is primarily bought—if you can afford it.
This digital currency has seen quite an explosion of interest. There have even been people who sold everything they ever owned and bought its worth in bitcoin. While some would call them silly for such a massive trust in a currency that is being blocked in several countries, others may call the smart for buying in while it is still possible.
What Makes a ‘Good’ Investment?
Before you consider buying into a certain type of investment, it is important to determine if it falls under certain positive categories. Consider asking yourself these questions:
- Is it viable for a long-term source of income?
- Is it realistically sustainable?
- Does it have suitable market value with proper exchange?
The biggest issue that most people have with bitcoin is the fact that it is entirely digital in its existence. It has no real world equivalent. The worth that it presently has changes every second that it is in the market, making it highly volatile. Most experts are expressing that bitcoin is a bubble market waiting to burst. When it does burst, those that are enjoying the incredible high it is on can expect massive losses.
Most people that are smart about their investment buy a bit and sell when they have already recouped their initial expenditure.
Whenever you are thinking of doing an investment, it would be important that you do your homework thoroughly. Never forget that every investment opportunity is a gamble of sorts. While history will determine what has been a wise or foolish gamble, this does not even give us the assurance of which instances will be the same. Sadly, no two investments are ever truly the same as time goes by. We believe that while bitcoin is something that you can invest in, it should not be your primary source of income.
Do you believe that bitcoin is an investment risk worth taking?
“I want to save money!” This is a sentence that many of us utter repeatedly in our lifetime. While everyone wants to save, many find it incredibly hard to do so. Today, let’s take a look at some easy and simple savings tricks you can try out.
Pay Bills in a Timely Manner
While you may think that this is a odd way to broach the topic of saving money, you would be surprised on what this can do for your finances. When you are quite prompt at paying your utilities, you more or less get an idea of how much you spend toward it. This provides you a better idea of how much you have left over.
If you do not have anything left over, this would be the time to reassess your utilities and monthly bills. Which ones are you excessive with? Knowing where your money is going is a great way to assess how you can channel your funds better.
This is one of the favorite trends of 2017 and since it did help so many people, why not carry it over? This works by designating a particular denomination to be ‘invisible’. For example, you choose $50 as your ‘invisible’ money. When you get your hands on any $50, you set it aside rather than spending it. You need to show a bit of willpower on this one. Every note of the chosen ‘invisible’ money must be put aside. The best thing is that you get to choose the duration of your invisible money method. You can choose to try it out for three months and extend it if it works for you.
Most of us have personally tried this method and we have to say it really works. While it can be hard sometimes, just stick to it and you would be surprised at how much you end up pooling together at the end of the time period.
The ability to save money is not some arbitrary skill that you can pick up and toss whenever you like. It is actually a very vital skill if you want to reach financial success and independence. Many of those that struggle with debt often find themselves in such a situation because they did not have the foresight to having a bit of savings to help serve as a safety net.
What ways have you employed to try and save money?
The topic of national debt is often quite confusing to a lot of people. While it feels like a topic that should be best left to government officials and actual governments, there are things that the everyday citizen can do to help out with the national debt.
Before you try anything out in terms of helping out the national debt, it would be important to become educated about the past and present state of the nation’s debt. How large is it now? What has the government done previously to help alleviate the growing interest rate of the debt? Understanding these is critical in forming informed decisions and opinions regarding the national debt.
There have been far too many people who are dissatisfied with how the government is handling the national debt issue but is grossly misinformed about its details. This is highly counterproductive and only adds pointless noise to the conversation. Educating yourself should be a priority.
Ignorance and apathy are the biggest enemies of a successful battle against national debt. As such, it would mean a world of difference if these could be eradicated. You can help raise awareness by talking about it. You can join discourse groups, write about in on your social media, and even actively campaign toward better awareness about national debt.
What is beautiful about today’s world is the fact that we need not step out of our front door to get in touch with others. The era of the internet has made it a LOT easier for information to be shared.
Pay Your Taxes
No one likes taxes—this much is something we can all agree on. However, when you skip out on paying your taxes not only do you put yourself in legal hot water but you also make things more difficult for your nation in the long run. When the government projects and ventures do not meet their projections, it is going to have to be the taxes of the people that pay for the interest and the debt itself.
The national debt is a problem for everyone. A lot of people who are in better economic situations may feel like they are not affected by their nation’s debt when the truth is they are. When the nation you belong to has active debt, it would important for everyone to pitch in with whatever little thing that they can.
Take a careful look at the ways we have listed above. Which ones are you interested in doing?
While it would admirable to never accrue debt, it is even more admirable to have debt and pay it off successfully. Today, we take a look at three common mistakes you should avoid when paying off your debt.
Tackling Debt Alone
Debt is a concept that is often accompanied by shame. As a consequence, a lot of people try to tackle debt alone. Despite feeling overwhelmed or unfamiliar with how to handle debt, they still try to take it on by themselves. A general rule that you should follow in life is this: if you have a problem, seek help. There are so many organizations and people out there who have the information and will that can help you find your way out of a financial hole.
Getting More Debt to Pay off the Old One
It may seem like a good idea to get another loan just to pay off the existing and pressing debt you have been carrying. From a logical standpoint, this makes very little sense. A lot of debtors will try to suggest that this is what you should do in order to pay off your debt right away. Do not fall for this mistake. There are always better terms to work out. As long as you are willing to face your debt head on, there is no reason why they should pressure you to take out a loan just to pay off an existing debt.
Let’s say that you’ve accrued some credit card debts and managed to pay it off. What would your next move be? A lot of the time, the answer would be to close that account in order to remove temptation—so to speak. However, this affects your credit score a lot negatively than having the actual debt. Having no credit is worse than having bad credit. When you keep the account that you have already paid off, you have a stellar example of not running away from your responsibilities as someone who has borrowed money.
Debt may often be necessary to take on especially when certain things are truly needed toward an overall better quality of life. When you start paying off your debts it is important that your head is in the right place. While the mistakes we listed above are fairly common, this should not be given a free pass. We hope that you take the pointers we have listed above to heart.
While of the ones above have you personally experienced when you were paying off your debt?
A nation’s economy is always affected by their debt. National debt is always a topic that hangs over the heads of that nation’s citizens. When you really think about it, how does it actually affect daily lives?
What is National Debt?
For those who are not entirely familiar with the idea of what national debt is, you are not alone. There are millions of people worldwide that struggle with the idea of national debt. Most even think it is something that is just commonly discussed but never anything that they need to deal with. National debt refers to the lump sum amount that a country or a country’s governing body has borrowed from different sources.
We’ve have rounded up some of the ways that the every day citizen feels the effects of their nation’s debt.
When a debt is owed, it only makes sense that you need to pay it back. Usually, the government will pay back the money owed through any revenue that their projects may have made through the year. If that is not possible, they will have to raise the taxes that the citizens have to pay. This can be placed on consumption taxes and any other form of tax that they may think is necessary. If you are paying for your own household, you will understand how this can really affect the everyday consumer.
Higher taxes on commodities without any sort of raise on the salary that is being earned will mean that there will be an eventual imbalance.
Weaker Job Markets
When the national debt is high, this also means that the economic growth is stifled. When a government or a nation already has debt, the sources where they got that loan would be less inclined to provide more money for other infrastructure projects or other necessary projects. Weaker job markets mean that not every citizen will be employed. Non-employment always leads to economic stagnation and poverty.
The countries which have a high national debt, the state in which their citizens live are often deplorable and most consumers in that state have a bleak outlook on life.
National Debt is something that must be tackled with transparency and expertise. It is something that must never leave the public’s perspective. What we all need to remember is that national debt is shouldered by all the citizens of that nation. Above, we have listed some of the ways that a national debt actually affects every day lives.
Which way have you felt the most with your nation’s struggle with national debt?
The topic of money is always tricky no matter how much experience you have with it. It can be easy to feel like you are staring at a huge overwhelming mess with not way out. Let us be the first to tell you that it is completely possible to be on top of your finances—even when you are a newbie in such discussions. Everyone needed to start somewhere when it came to handling finances properly. Today, we will take a look at three different ways that you can be on top of your finances.
Using a Calendar
Monthly responsibilities always come due just like clockwork. This can make a lot of people feel completely under pressure. However, there is a completely positive way to handle this. Since we can all agree that financial responsibilities are recurring, making use of a calendar is a smart way to keep track of what is due and how much should be allocated for it.
You can use the calendar as a sort of marker for larger and often periodic instances like taxes or when you should ask for a new credit report or pen an appointment with your trusted accounting guru for a fiscal check-up.
Establish Your Needs and Wants
Whenever finances are involved, having a clear structure to allot your money is a great idea. Whenever you have your money in hand, the first thing you must do is to allocate where you need it to go instead of where you want it to go.
Establishing the difference between needs and wants is an important part of managing your finances. Knowing what you need and prioritizing that can help structure your finances in a way that would actually help you obtain what you want in the long run.
Build a Budget
Speaking of structures and goals, nothing will help you better than building a suitable budget for your finances. When you see how much you have to spend for your monthly responsibilities, you get to see other things as well. You can now tell how much you need to make in order to sustain the lifestyle that you want. You get to see how much you have leftover after all the spending is done. It helps guide your decision making process on what you can actually do with your money and how you can take care of it better.
The topic of your finances need not be the scary or sticky situation that you sweep under the rug. Any financial guru will tell you that this is something that needs to be tackled out in the open with everyone on the same page. This is particularly true for those who have families. Having a good conversation and utilizing the methods we have listed above can help you be on top of your finances.
Debt can be a highly necessary thing to take on—especially as taking out a loan can lead to better quality of overall living. Many people struggle with debt but all it takes is proper debt management to work your way out of the maze.
Debt is something that we take on in order to obtain things that are normally out of reach. Housing, cars, education, and even medical needs can all be taken on with a right kind of loan. However, a common mistake that a lot of people make is that they only see the shiny new thing and not the debt that is normally attached to a loan.
When you are looking to take on debt, there are certain things that you need to really review:
Your Credit Score
Your credit score is what will determine if you will be eligible for a loan at all. Check your latest credit report to determine if you have an okay credit score. If you do not, taking on a loan may not be in your best interest right now.
Not every lending institution has the same sort of terms when it comes to their payment scheme. Before you take out a loan, it is in your best interest to shop around for terms.
When you want to take on debt, you must assess your earning capacity from a disconnected perspective. Do not let your emotions get in the way of the analysis. Jot down everything that you earn and where it must go. Have you allotted enough for savings and monthly responsibilities? Where does debt come in? How much will the terms be on a monthly basis? Can you afford it? Answering these questions help you manage your debt better.
Debt management is something that can be achieved with suitable preparation and financial literacy. Now, before you check out what sort of loans you can take on have you checked out the things we have listed above?
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