Nothing is certain – jobs least of all. There once was a time when, if you had a job in a bank, you were set up for life. Not so any more. There are factories, retailers, industries, and banks, falling down all around.
However, this is a phenomenon that repeats itself:
Every twenty years or so, in the financial world we experience a recession. Recessions, by their very nature are temporary. Some recessions are worse than others, and this one appears to be bad. But it is still temporary.
It doesn't have to be as bad as it seems. We all – but in particular the media – do tend to think of 'bad news' as 'good news' and we talk ourselves down into even more 'bad news'. It's not possible to open a newspaper or turn on the TV without being bombarded with facts about how bad and how gloomy the times are, and how we are all diving into an even deeper recession.
Why is that? The main reason seems to be that bad news sells papers better than good news. It's the same with any news, anywhere in the world. If the media were to start talking about 'good news' we would all suddenly feel a lot better, but there would most probably be fewer newspapers sold!
So it's time to check out the other side of the coin.
Whatever your financial state of the moment, it's essential to PLAN your personal finances. Remember the old saying:
Earn $50.00 and spend $50.50 – result: Misery – but
Earn $50.00 and spend $49.50 – result: Happiness
What's the answer? Well, it's essential to make a budget. Taking precise notes of everything being spent over the week (even down to the odd newspaper or stamp) and working out exactly where savings could be made. This is a very good start.
Paying your bills on a monthly direct debit system is another good way to budget wisely. In doing this you would have no big bills coming in to surprise you – it's all broken down into bite-size chunks that are more easily digested.
If at all possible pay off your debts – it's essential to become debt free as soon as possible. If you have debts, and you also have some savings, just think about the cost of your loans, against the amount of interest your savings are earning. There really is no comparison. So use any savings you may have to reduce your debts. This includes paying off your credit card debts, and car loans.
The greatest form of finance control is self-discipline. Understanding finance also includes self-discipline. Sometimes you have to deny yourself small pleasures in order to obtain the bigger more important things. Finance also means that you need to set your priorities straight. Sacrifice may seem like a lot at the moment but the end will justify the means.
Credit cards do have their place. It's great to use a credit card, but essential to use it wisely. If you settle the bill completely at the end of each month you will have no interest to pay.
It's true to say that the majority of us working people exchange their time for money (work) for most of their lives. Whereas rich people don't do this. Rich people invest their money and make it work for them. They collect passive income, including rents, share dividends and interest. Ok, money makes money, but there are ways to get out of the treadmill situation, and jump aboard the train to freedom. The rich people also earn money from royalties – doing the work once and then earning royalties forever – from books, articles, reports, software and so on.
There are many ways to avoid financial disaster. They won't automatically come to you – you will need to search for them and do something positive for yourself!
A very satisfactory method of helping to make ends meet is by starting up your own home-based business. I say home-based because there are no overheads – no rent or salaries to pay – so great for small start-ups.
From personal experience I can recommend Internet Marketing. This is a fast-flowing modern business that will suit virtually anyone. There are unlimited niches to specialise in. It's ideal to get someone with Internet Marketing skills to help with the start-up process, but once a little groundwork has been accomplished, rapid progress can be made.
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