Avoiding money issues

Avoiding money issues

To avoid money issues we have to have a surplus of cash flow. Our incomings must be greater than our expenses. To do this we have to create a realistic budget and we have to stick to it. We can have a budget plan. For instance, we can spend 25% on housing, 25% on livelihood, 10% on utility, 10% 0n savings et cetera.

Don’t be an impulsive buyer

To avoid money issues we have to avoid buying things impulsively. If you see something and you like it very much but you don’t have the money to buy it at that moment, then you have to save for it. Or when something you like is for sale but you don’t need it at that moment, then you don’t need to buy it. We need to be responsible spenders.

Be a responsible spender

To avoid money issues we also have to become responsible spenders. The first thing that you must have is a medical insurance and a funeral expenses insurance. Because if you don’t have those insurances and you have to deal with medical charges or with funeral charges, and then it can be very costly.

You also have to try to charge items only if you can afford to pay for them at that moment and not on credit cards. You also have to avoid large rent or payment for your house. Let the rent or payment for your house be 25% of your income. Avoid also large payments for a car loan and if it is possible save for it and buy it cash. Don’t let a car loan and other loans, together, be more than 20% of your income.

To be a responsible spender you also have to avoid high-risk investment such as penny stocks, junk bonds or other speculative investments. You can also find alternative ways of spending money for parties or for dining outs.

Avoid co-signing

Another way to prevent money issues is to avoid co-signing or guaranteeing a loan for someone because you never know if those people will pay their payments as they should. Also never enter into a joint obligation with someone who has questionable spending habits, even if they are a spouse because you never know of your relationship will outlive the payments.

Ways for extra cash

If you want something that bad but you don’t have the money, then you can make some sacrifices and save some money, or you can take a second job or you can look for an online business. For an online business, you can go to par example to Wealthy Affiliate.

 You can click over here to get in contact with me at Wealthy Affiliate.