22 Feb 2011

Avoiding Financial Crash

Accidents can be related to financial activities. Financial crash of the most experienced people is when earnings are found to be never enough to finance spending. Always feel less though if you want to reduce consumption, income derived is still able to make a living.

Tragically, the inability to exercise restraint resulted in consumption of the road ahead with the financing is done by credit card. Consequently, the costs become greater than the income. This was the beginning of the financial crash which would continue with other accidents.

Concrete example, the use of credit cards will increase, while income is relatively fixed. What happens then is no longer the action of digging a hole closing hole, but caught in the debt hole deeper and deeper. Life had become unsettled.People are always being chased by debt collectors or prolonged stress because there are still many unfulfilled desires. It is not possible, because the more complex problems, the work could be lost.

That's just the financial crash that caused the inability of "brakes" of consumption. There is another another financial crash that also hit millions of people, namely the inability to provide funds to pay for school children. Funds for school children who are not prepared can lead to the child not in school.Even in school, eventually the child can only be in school are less qualified. Or in fact, funds for school children is available, but because it affected the surrounding environment, children forced into school is super expensive. In order to maintain prestige, parents had to owe it to pay for school children.

Financial crash is not only experienced people in productive age. Not a few accidents that hit the ages that would have been in steady state. An employee who has been accustomed to be given by the company's facilities, such as vehicles and home offices, often forget to buy their own homes.When retirement age arrives, he will have a big problem because it has no home or vehicle. For, throughout his career, he has been accustomed to using company facilities. Retirement should be enjoyed instead forced him to keep working in order to obtain money to buy houses and vehicles.

What will we do for the financial crash did not approach you?

  • First, do not ever owe if the aim is only to finance consumer lust. Debt is only worth doing for productive activities that can provide income. Debt to this consumer, such as home loans and vehicle loans, may be considered if the installments are still being met from the monthly income. The use of credit cards even if not for the debt, but only for ease of payment transactions. So, not because they do not have the money, but more because of sheer practicality.
  •  Second, make an investment and protection simultaneously. Many people assume that if you've invested, the issue is completed. In fact it is not like that. In investing, many financial possibilities of an accident.That is because there is the term "do not put the investment in one basket". The principle is simple, if all your investments in stocks, for example, when the stock market tumbled, is not impossible that all your investments will evaporate.Therefore, the investment must be protected. How do I? Spread of investments in various types, ranging from low-risk, medium, and high. In this way, actually have protected your investment. Concretely, if your investment is high risk to have problems, you still have a "reserve" of investment in low-risk types.It is a protection in the context of investment. Beyond that, protection to prevent the negative impact of the financial crash could also be done by purchasing insurance products. As the examples above, people often experience problems in meeting the costs of children.

Well, one easy way to avoid financial injury associated with children's school fees is to purchase an insurance policy education. In addition, various other insurance products, including health insurance, accident insurance, and death insurance, is a "stance" overcome the financial risk of accidents.Actually quite a lot of ways to avoid financial accidents. As if driving a motor vehicle, before driving, certainly should be checked whether everything still works fine. So also with the financial matters. Before you perform various actions, of course, must consider the risks and the likelihood of financial crash.


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