Currently, an abundance of all kinds of consumer goods and services pushes people to apply to banks and microfinance organizations for non-targeted loans. Appetites for consumption are increasing, but as such, the population does not have "free" funds to acquire what they want and savings. Undoubtedly, it is convenient to use "easy" money and to give yourself a little joy by satisfying the arisen needs. However, few people think that the method of obtaining borrowed funds sometimes carries with it a huge overpayment.
It is necessary
Instructions
Step 1
Form a cash reserve. It is enough to set aside 10% of income in order to collect the amount for the "airbag". This money can be used in critical life circumstances, without causing damage to financial well-being. The recommended "stash" should be comparable to 3-6 salaries. Your financial piggy bank money can come in handy in case of job loss or sudden health problems.
Step 2
Think carefully about your purchases. Sometimes we are driven by momentary desires and impulsive actions. Having seen the next thing you like, you need to ask the question: "Do I really need it now?" Often, joyful notes from new acquisitions are replaced by bitterness of regular payments on a loan.
Step 3
Control your income and expenses. The problem for many people is that they don't live within their means. Spending in excess of income always condemns a person to debt. Monthly analysis of the expenditure side can significantly improve the financial situation.
Step 4
Look for additional sources of income. There are many ways to increase your money. It can be a hobby that brings additional funds, renting out property, making money on the Internet, income from investment. All this can significantly increase your financial position and eliminate the need for credit.
Step 5
Set financial goals for yourself. For example, save up for a tourist trip. In order to accomplish this, you need to regularly allocate small amounts from your budget. If you take a loan for vacation, then in any case, in the future, you will need to enter an item for repayment in the expense item, and this is an additional financial burden that can be avoided by planning this event in advance.
