5 Steps To Make Sure Your Financial Situation Is Not A Concern

One of those issues that sometimes takes on a  disproportionate importance  is financial situation . We all know there are bigger things, but the truth is, when we do the end-of-month counts, the problem stays the same. Either we pay or we pay. While month-end counts aren’t a problem, sometimes it can be with wishing for something that will be hard for us to get. No matter how hard we strive, we will find that this goal is too far away . We are stretching our budget and it still remains at the desire stage.

There is obviously the case of those who buy  whatever they want, but who are always on the verge of bankruptcy. Only a small number of people never experience economic hardship. It is a recurring subject which sometimes does not leave us in peace.

However,  the problems usually don’t come from the amount of money  we get or don’t get anymore. The crucial point is how to administer it. Tranquility can only exist when certain fundamental aspects are guaranteed. We can take better control of our financial situation at any time, and here are five steps you can take to get there.

1. Saving, the basis of a good financial situation

It’s hard to talk about savings  at a time when consumerism has reached extremes. Indeed, we no longer talk as much about our heritage but rather about our capacity to consume. We are constantly bombarded with offers, promotions and incentives to spend our money.

Saving  is primarily a habit  which is also essential for achieving a stable financial situation. Economists have specified what the amount of these savings should be: 10% of income. If we get used to the idea that that 10% is never ours, that it is some kind of tax that we have to pay, everything will be very easy. We shouldn’t be spending this money for at least a year. We might be surprised at the effectiveness of this result in order to acquire what we want and which always remains at the stage of desire.

2. Have an emergency fund

A good financial situation is often called into question due to a costly contingency. An unexpected expense for the home, illness, or an emergency trip are the most common unforeseen events.

That is why it  is necessary to create and maintain an emergency fund. Economists once again have an answer to the question of how much to allocate to this fund. They say we should dedicate 5% of our income. We must, in this case, also assume that this money does not belong to us. Pretend that it is a debt to our well-being, which we have to pay every month.

3. Guarantee our social security

This is a measure on which we must insist, especially with regard to the youngest. At an early age old age seems non-existent. It does exist, however, and can occur with all its severity, putting us in a position of extreme vulnerability.

Currently, jobs are not always offered with all the guarantees that social security implies. If we find ourselves in such a situation, we should systematically invest in a fund or make additional savings for old age. There is again a percentage for this: 15% is recommended. And more if possible. Having resources in the last stage of life is priceless.

4. Have a monthly budget

In order to have a stable financial situation, it is necessary to reckon with a monthly budget. It is very important to know how much money we get and how we spend it, especially if our income is not fixed. Keeping accounts is depressing, but it is absolutely necessary.

Based on what we said earlier,  we should deduct 30% from our monthly income. The rest is what we can really think of as spending money. Some may think it’s too much, but if we take a closer look, it’s basically a matter of habit. We know that sometimes incomes go up and that is not enough for us. This is due to a lack of discipline in the management of our budget.

5. Don’t buy on impulse

Let’s go back to the beginning: we live in an environment where we are constantly encouraged to consume. Many  announcements are directly oriented so that we make impulse purchases. This is the reason why important facilities are offered to us in order to overcome our resistance.

Without realizing it, we  often end up acquiring things that we don’t really need. Worse still: things we didn’t really want. We are just getting caught up in this 70% reduction, or by a fad that does not bring us anything positive.

Despite appearances, money is closely linked to psychology and organization. Its meaning, its use and the consequences that it implies are more present in the mind than in objective reality. Having a good financial situation is important for peace of mind. We have to adjust things so that money does not rob us of sleep.

Our thoughts

Actions such as winning or losing money are closely related to emotions. In most cases, this resource is not obtained …