2008 was a bad year due to stock market tumbled. Many people hope for a better 2009, but hope can not cut unemployment or improve the housing market. In these case there’s need a strong action from all nations to getting a radical change.
Fortunately, these days I no longer have the problems of making money, but there was a time not too long ago when I’ve going through the inevitable growing pains.
Thus, in these years I’ve learned to take control of my money and I want to share my knowledge with you. These financial basics can help guide the way.
Image Credit: Alles Schlumpf
1.Tracking your money – Keep an eye(for a few weeks or months) on each penny goes away, in order to know how much money you spend and remain to you. Personally, I love tracking my expenses, but it gets really annoy to do every day. However, I think this is the one rule to follow.
2.Develop a budget -It’s difficult to develop a budget if you have a variable income, but it provides a roadmap for your money.
According to The Millionaire Next Door, budgeting is one thing that sets the wealthy apart from the rest of us — 55% of millionaires keep a budget.
My favorite budgeting methods is that of Elizabeth Warren’s. The formula is simple but effective: 50% to needs, 20% to savings and everything else to wants.
3. Create an emergency fund – Many people spend everything they earn. This system work well until something goes wrong, because can happen that suddenly they find without money to pay for doctor’s, home mortgage, etc. It essential to save money for emergencies.
4. Earn extra money – Many people take temporarily a second job to get out of a financial. Nobody wants to work more than the normal 8 hour a day, but sometimes that’s what is needed to get out of debt or to save for a house.
To earn extra money you can sell things, or use your hobbies, for example, it’s possible to get rich playing World of Warcraft, and in my next article I will explain how to make money from this beautiful game, then stay tuned to my blog.
