My last three months have gone into heavy travelling in the Middle East and gave me another opportunity of meeting a number of people from different backgrounds. I had quite a few meetings related to advising and coaching individuals and families, and one thing that I have noticed is that the majority of the people are worried because of an uncertain financial future. Some of them have lost their jobs, some are on the verge of losing their jobs, companies are shrinking their workforce and operations, and many people are looking for advice on how to manage such a situation.
The world’s struggling economy, oil and housing crisis, continuous wars in the Middle East, and credit crunch have undeniably impacted millions of people. The complex nature of turbulent capitalistic economy leaves many people feeling confused and powerless.
While it’s important for us to understand the system and how it works, it is even more important for us to empower ourselves to take good care of our personal economies – our monthly income, expenses, and investments. I am just going to share some of my thoughts on managing personal economies.
The only thing that you can control is your budget and expenses. The task is not always easy, but the basic fundamentals of smart money management still apply no matter how confusing things get at the macro level.
Changing your spending habits are the first and maybe the most difficult undertaking your family will face while trying to survive the financial crisis. Living as though nothing has changed is the number one mistake people make during challenging times and can lead to seemingly insuperable debt.
Keeping yourself financially stable is a continuous struggle.
Following are the six simple steps that you can think of applying to manage yourself better financially.
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