Ten Commandment in Preventing Future Financial Problems

1. Set Financial Goals
Set (and follow through) a long, short, and mid-range savings goals and time range for paying bills. Keep in mind to be realistic when setting your goals.
2. Keep a Budget
Save at least five to ten percent of your net income each month on a continuous basis. Maintain at least thr~ to six months’ salary worth of cash flow in case of an emergency.
3. Keep Track of Spending Habits .
Keep a ledger of your daily spending. Determine which ones are necessary and which ones are not. Compare with your budget and financial goals and eliminate any unnecessary spending habits on a gradual pace.
4. Only Make Necessary Purchases
Purchase only when it is necessary. Try-to maintain the mindset of buying only the necessary items. Avoid going to sales events when it is not necessary, because more than likely when you go to a sales, you will purchase items that you don’t need.
5. Economize when Possible
Cut back on home energy consumption. Bring lunch to work more often. Take advantage of free or low cost activities in your community. Simple ideas like these may not sound luxurious, but it saves.
TEN COMMANDMENT IN PREVENTING FUTURE FINANCIAL PROBLEMS
6. Be Credit Cautious
Don’t allow credit payments to exceed 20 percent of your net income and don’t borrow from one creditor to pay another. Don’t charge more than what you are paying each month. In case if you can not make your monthly payments, try to work out a payment plan with your creditor immediately.
7. Get Medical Insurance
Obtain a medical insurance even if it is a stopgap policy with a large deductible. It is impossible to avoid medical emergencies, and living without medical insurance is an invitation to financial ruin.
8. Do Not Make High Risk Investments
Do not gamble (literally and figuratively). In every gamble, you don’t necessary win, but you most definitely pay. Whether it is in a casino, or in the stock market, gambling seldom leads the gamblers to financial prominence, but instead, often leads them to their financial ruin. Opt for certificates of deposit, money market funds and government bonds over speculative real estate, penny stocks and junk bonds.
9. Avoid Co-Sign or Guaranteeing a Loan or Involve in a Joint Obligation with
Someone .
For whatever reasons that you happened to decide to Co-Sign, Guaranteeing, or become Jointly Obligated for a loan or other financial obligations with someone
else, you are in fact volunteering yourself to be totally responsible for these’ obligations if the other person defaults.
10. Seek Professional Help
When you find yourself engulfed in debts and financial problems, do not simply ignore them. Seek professional help as soon as possible. An experienced attorney or financial consultant specializing in dealing with financial problems can help you turn your life around.