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When talking about
finance, the area which have direct relation to you
should be the so called: Personal Finance.
Personal Finance
is the management of your money. Some people spend more
then what they can earn. This is not only a bad habit.
Most importantly, you should remember that, financial
planning is one of the major components of personal
management. It is critical to your life success. All the
people have the responsibility to understand what finance
is and how to improve the personal finance
management.
Generally,
financial planning involves analyzing your current
financial situation and predicting the short-term and
long-term needs. It is not surprise that if you are in a
mess of the current financial situation, and feel really
tired of your finances managing you. Many people are in
the same situation too. Why would that be
happened to you?
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First thing first, you
have to understand what your
current major financial problem is.
Maybe you thing your problem is complex.
Maybe someone just want to escape.
Someone may alway say he have great
passion to change his financial
situation. But he just delay he plan and
never take any action. You know this will
not bring any change in that way.
Besides, there is absolutely no need to
think too complex. Do remember, always
use simple solution to solve complex
problem. You need to analysis your
current financial problems one by one. To
be more specific, try to classify that
into 2 major components. One is the
Income side and one is the outcome side, or
the spending
side.
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Now, write down
quickly all sources of your incomes. This can be salary
or freelance job, or even the revenue from a small online
business. Next, think of and write down all kinds of
spendings. This should include every bucks that you take
out from your pocket. This could be expressed in the
following way:
| Income |
Spending |
| Salary |
Real estate
mortgage |
| Freelance
jobs |
Taxes |
| Other sources of
income |
Necessary spendings
|
| Total income |
Total spendings |
You don’t need to
know how every dollar is earned and spent exactly.
However, you should have a good sense of whether you are
able to maintain a financial balance. Of course, it is
better if you can have savings. Try your best not to
increase any unnecessary debt, or even don’t use credit
card. A good financial habit can protect you to have a
healthier and happier life.
This is also the
purpose of finance-database.com. We are not professors in
the College. However, we do want to share with you our
financial knowledge and our ideas. We want to share our
writings through short articles with layman text, such
that they could be easily read by our readers, and would
feel more interested to feedback to
us.
Besides the
financial knowledge, we may also want to share our
knowledge in some other subjects, such as personal
management, NLP, time management, hobbies, etc. Our hope
is to build that web to be a useful and fun place. Your
support to us is most important.
Thank
you.
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