How to Avoid Poverty ?

How to Avoid Poverty - For the person who was originally rich, then fell poor, about why huh? There are many reasons behind this. It could be because his attempts failed, broke, and was subject to deception. Or it may be because of sick who do not heal, so that wealth is exhausted one by one for the cost of treatment.

But most people are falling poor because they are unable to properly manage their assets or wealth. The cause of the inability of financial management is not separated from the various bad habits that one does in his life.
How to Avoid Poverty
How to Avoid Poverty


How to Avoid Poverty

1. Budget-Making Routine

Everyone should essentially put together a good monthly spending budget. Because this will help someone in controlling spending. Calculating the budget expenditure for a month time according to income. That way, there's no such thing as excessive spending. Shopping as needed, not wishes.  

Unfortunately, many people are reluctant or difficult to make that budget because it is too busy to take care of daily work. Some even consider this to be unimportant. Do you belong to a person like this?

Keep in mind that structuring the budget is crucial. If you continue with this kind of habit, averse to make a monthly budget, then you will be able to see what happens at a later date. As much money as you earn, it will slowly run out without you realizing it.

2. Lifestyle Must be Budget-Based

The demands of lifestyle do not seldom make a person fall poor. How not, to fulfill the lifestyle it takes large amounts of money. To buy branded items, eating in restaurants or hangout in the weekend alone is very draining the contents of the wallet.

While still being able to skimp, try to save money. There is no need to follow the lifestyle of others if it is essentially incapable. It is better to live what the financial condition is not disturbed.

Saving here does not mean stingy, huh! It's just that you need to reduce the costs that are not important and that shouldn't happen. Thus, any amount of money is kept safe.

3. Don't Buy Anything Random

Honestly, controlling the appetite is very difficult to do, especially for the shopaholic. Because for those who like it, shopping is a must. Without shopping, his life will feel very empty and void. Are you among those?

Any hobby you shop, try to control the shopping desires well. Don't travel too often especially to the mall if you don't want the money in the wallet to run out quickly.

Before going shopping, consider the benefits and how important the item is to your survival. If not too important and urgent, it is better not to buy. The better the money is diverted for things that are far more important and give maximum benefit.

4. Not Ignoring Savings and Investments

Who says savings and investments are not important? In the modern era as of now, these two financial instruments are essential to consider. A person who has savings and investments can certainly be happy and assured in his or her old day.

The person does not need to think about living expenses in the old days because they already have money prepared as young. As long as the money saved or invested is allowed to settle, believe that the amount will increase over time. Especially if you are able to manage both of them well, then the savings and investment will give many advantages.

5. Not Using an excessive Credit Card

Credit cards will only benefit if used wisely. If the origin of the swipes only, the financial condition will be shaken in the near term. You who have no debts, will suddenly have debts. The charge must be charged every month. 

6. Should Set Aside Emergency Funds

The money or income you earn is not only allocated to fulfill basic needs, save, or invest. Set aside for emergency funds. It is a fund that is allocated specifically to finance things that are emergency. Because an emergency event often spends a lot of money. 

Just imagine if you are struck by accidents like illness, then the cost of treatment alone can reach tens or tens of millions of dollars without using BPJS health or health insurance. Not to mention if you need special and intense treatment from the doctors.

A lot of money can be insufficient to finance this kind of emergency. Therefore, allow 10%-15% of the monthly income for the Emergency Fund. When something unpleasant happens, at least you already have a deposit to cover some of the cost later.

7. Don't Origin Lend Money

Lending money to others is a noble deed, especially if the person is really in need. But this habit is not uncommon instead of making you fall poor. Imagine if the borrower is not paying off his debts, you alone will lose.

It is legitimate that you want to lend money to someone else. However, pay attention to who borrowed and the amount borrowed. If you do not know the borrower or the amount borrowed is too large, it is better to be directly rejected as this is potentially self-harm. 

You don't have to force yourself to lend money to be branded well by someone else. If not able to give a loan, what to continue? Anyway you have, can be judged from daily attitudes and deeds. 
Although you can afford to pay credit card bills, it's good to keep an eye on the use of this milky card. Use credit cards to save money, for example, to get a promo or discount at a particular merchant.

Well, outside of that benefit, you shouldn't need to use a credit card. While you can pay in cash, what's wrong with cash. You do not have to owe and falling financial problems, right?

Although it is a lot of money but it is better you use it wisely very much to overdo it and make you even become poor falling. So should be better in keeping your finances well

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