7 ideas to improve your economic situation

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Surely you have asked yourself on more than one occasion how you can do to make ends meet. Your income, which once seemed to be enough to cover your expenses and commitments, suddenly does not reach you anymore. The reasons why this situation occurs can be very diverse, although they can generally be reduced to that you have lost control of your expenses and probably have acquired debts that you can not cover.

In general, if you do not have a strict and regular control of your income and expenses, the most likely thing is that you derail in the search for a better economic situation. It is to take into account that we live in a world that all the time exerts a great pressure to acquire and own goods and services, advertising bombards us at every moment, and if you are not clear about your real financial situation, it is most likely make wrong decisions about your money.

Also, if you do not have an emotional balance, which allows you to control yourself against the influence of the outside world (which includes family and friends), you are exposed much more to any economic setback. For example, if your neighbor changes his car, and you turn green with envy, and you run out to the nearest dealer, and you go into debt with the excuses that “I deserve it”, or “I see how I can pay for it”, or “if it’s not like that, I can never change this old car.” Another example could be that to “screen” your father-in-law, and see the good life you can give your “little daughter”, you buy one and a thousand gifts paid with your credit card. Or if you do not control the emotion that you get to pass in front of a shoe store, you enter and leave with two pairs, which you did not need,

I have developed a series of factors that I think can help you answer the question of What to do to make the money yield more? Here are some ideas:

1. Change your mentality

In all aspects of life, your mind can be the factor of success or failure. If you handle thoughts like “Money never reaches me,” or “I’ll never be able to get out of this situation,” chances are that, in effect, you never get it. You must know that achieving wealth has nothing wrong, it is within your reach, because many people have achieved it, and also, all you have to do is focus on yourself, not change anything external. In addition, you must have enough emotional balance, to know that you can achieve all your goals, but you must also learn to enjoy what you have today, without tormenting you for what you can not have.

2. Prepare your personal income and expenses budget

This must be monthly, and projected at least one year ahead. You must review it month by month, and you must make the necessary adjustments. It can be a difficult task at first, if you have never done it before, but it will surely pay off. As a general rule: Your expenses can never be higher than your income.

3. Meet your budget 

A lot of people have a budget idea written somewhere, or in their head, but that does not happen. The important thing is to fulfill it. If you do an estimate wrong in some category of income or expenses, you must make the necessary adjustments, and move on.

4. Create your Emergency Fund

It is very important to create an emergency fund, which covers your expenses between 3 and 6 months, because you do not know what can happen to you. Many times, because you do not have an emergency fund, you can fall into debt, or even lose part of your assets.

5. Reduce your expenses 

Many authors recommend leading an austere or frugal level of life, and in this way reach wealth. This seems excellent to me, as long as you do not become conformist, and you lose the healthy ambition to look for a better situation.

6. Prepare your personal financial statements

This is a topic that may seem complex at first glance, but you will see that it is not very difficult, since it allows you to have a clear picture of what your current financial situation is. It allows you to set goals and review your financial progress.

7. Increase your income

You can do it. Check what you like, what you can do better, your hobbies or your skills that can somehow generate income. If you have a job, make overtime, or look for an increase or promotion, OR look for another part-time job. Or change your work. Invest in a business. Create your company Use your imagination.

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