How are you doing with your finances? Do you consider yourself financially stable? If you do, then good for you. If not, you are not alone. Most people are having problems with money because only a few are financially literate. Most of us have to learn financial lessons the hard way. Just imagine all the things that you could have done differently if only you know a thing or two on personal finance.
Did you know that the number one cause of stress is money? According to several studies, more people worry about money compared to health, family, work or relationships. This is true regardless of age, citizenship, gender or educational attainment. Although financial stress is expected among low income families, it is puzzling to note that even high income households and highly-skilled professionals still do worry about money. A diploma on a prestigious university is never a guarantee of wealth.
An income is the money that you received from work or from your investments. Without income, you will not be able to pay for your living expenses.
There are two types of income: active and passive income.Read More »
Understanding basic money terms should be your first step towards financial literacy. It would be very difficult to start learning financial literacy, much more overhaul your financial life without understanding the basics. Just like reading for example, you won’t be able to learn how to read without knowing the alphabet.
To live beyond your means simply means that you are spending more than what you can afford. Statistics show that a great majority of employees nowadays are living from paycheck to paycheck without any kind of financial cushion. While we all deserve to spend our hard earned income, spending beyond our earnings and racking up debt in the process is a recipe for financial disaster.
To live beyond your means is to spend more than you earn.
Are you constantly worried about money? Are you struggling to meet debt obligations? Do you feel that your salary is not enough to cover your monthly expenses? Are your financial worries so stressful that they are already gravely affecting all aspects of your life including your health and personal relationships?