Those of you who read this blog regularly definitely have a firm grasp of the chaotic strife that can be caused by gross indebtedness. We mostly discuss here the scourge of debt on a grand scale, however, and don’t touch too much on what can happen to personal finances as a result of debt. Today I want to just take a moment and remind all of you that charity giving, such as a car donation, can be a great way to ensure that your finances remain healthy.
Charity can be a great way to help others in need as well. Helping others and keeping your fiscal health in order makes for a great combination. Avoiding unhealthy debt should always be of prime importance in regard to your personal finances.
Of course, there is a simple reason why people end up in debt and it’s the same reason why companies, countries and anyone does. It may sound extremely obvious yet it’s simplicity is often ignored – spending more than you’re earning. That’s it, although the reason is straight forward doing something about it can be difficult.
On a personal level, it’s often easier but you won’t get anywhere without listing out your income and expenditure in detail. This simple process is something that some of us never manage and it’s absolutely essential if you are going to have control of your finances.
After this is it’s all quite logical, you should be able to see what’s essential and what isn’t – start by compiling a list based on what’s not optional. Then you can move on and cut back on non-essentials and really start to evaluate how you live and spend your money.
One of the two areas which do tend to cause trouble are things like food and entertainment. Cable, movie and TV subscriptions can add up to huge amounts every month if you’re not careful. It’s actually one area that’s fairly easy to cut back on too, especially if you have a fast internet connection. For example why not cancel all the TV subscriptions and invest in an inexpensive VPN service which allows you to download all the videos from the BBC to watch whenever you like. In fact you don’t even need the VPN if you’re based in the UK, and there’s enough on all the free-to-air UK tv channels for anyone to fill their entertainment needs!