EVERY ASSET HAS COST ASSOCIATED WITH IT .MANY ASSET HAVE HIGHER COST OF MAINTENANCE THAN OTHERS .
MANY TIMES WHEN WE CALCULATE HIGH INCOME FROM INVESTMENT FROM ASSET WE OFTEN FORGET ABOUT COST OF MAINTENANCE.
REAL ESTATE OFTEN REQUIRES HIGH COST OF MAINTENANCE IF NOT MAINTAIN FROM TIME TO TIME .
HIGH COST ALSO REQUIRES HIGH EARNING CAPACITY TO BEAR HIGH COST .
PRODUCTIVE USE OF ASSET GIVE ABILITY TO CRATE GOOD QUALITY OF ASSET WITHOUT MUCH FINANCIAL TROUBLE.
CALCULATE COST OF MAINTENANCE OF ASSET BEFORE BUYING ANY ASSET
People may often take personal debt for various purpose .
Many times people take too much debt and fall in the cycle of debt .
While earning source are limited .Repaying Debt and removing interest burden is difficult. Most of income earned is gone to repay debt and no income left for saving .
Best advice to control your debt is maintain moderate debt compare to your income level .By taking more debt even if you are able to complete your wishes .later on it interest burden remove joy of goods and services you enjoyed by taking more debt.
So if u fall into more debt less income cycle .Best things you can do is
- convert your high interest debt into low interest debt
- reduce your expenses.
- reduce investment
- increase income earning source.
Budget calculations is one of most important things to do for managing your personal finance.
Preparing yearly monthly and daily budget before making any big or medium financial decisions is good habit .
While preparing budget is tedious and time taking work but by doing so you can easily make priorities of your goal and allocate financial resources for that .
Without budget you are not able to know from where money come and what are our priorities.
We can’t ignore our basic financial need like food ,water and medicine and various tax and insurance responsibilities while preparing budget
- Make your shopping list in advance
- Use various occasions for buying various goods and services
- Often buy products which are useful quickly
- Record your shopping expenses