Poverty arises when an individual cannot meet his financial obligations as they mature. If you are interested in a financially secured life for yourself and your family, then it is strongly recommended that you pay undivided attention to the following Rules to Avoid Poverty.
1. Establish and maintain good saving habits
The amount to be saved at the end of each period or month must be determined well in advance. This will help you to follow an establish standard, and when there is a variation, it would be noted quickly. Therefore, do not allow your saving to be dictated by emotion or spurs-of-the-moment.
2. Establish a budget
The budget must not be abstract or imagine. It must be clearly spelled out and written down. You must take note that there is little or nothing you can do to influence your earnings. That been the case, you must maintain a strict budget. A good budget enables you to look into the future and adjust your spending so as to meet obligations as they mature.
3. Save in the case of emergency
Emergency funds afford you the opportunity of caring for contingency without interrupting your budget very much. In today’s world emergencies including natural disasters can arise so suddenly. There should be provision for an emergency fund so that you don’t result to overdrafts. Therefore start today and remain consistent. In time you might come to have an acceptable emergency fund, able to carter for medium size emergency.
4. Learn to do without
People who live in the land of limited resources have learned to do without a lot of life’s necessities, not by choice, but compulsorily.Many of our brothers can endure the lack of necessities of life, we who leave in affluent lands should also learn to do without some luxurious items that can plunge us into debt and ruined financial life.
5. Get rid of unused household items
Household items not currently in use can be sold or given out as an outright gift. Selling off unused household items may result in more cash in hand. Even if is giving out as a gift it will spare you the cost of maintenance from time to time. In time you may discover that a smaller apartment is sufficient for you. How can you determine which items are not needed? Well, when was the last time you use the other refrigerator? Do you have a set of electronics you not touch since you bought them? Are there some pieces of clothing you have not touch since you bought them? Do you have a car you consider old model? These and others like that may constitute unwanted possessions. Then, it is financially prudent that you get rid of them as soon as possible.
6. Avoid unnecessary expenses
Check your budget once more. What do you find? Can you cut down on gas usage? Can you move into a smaller apartment? It is worth the while if you can move into area you pay lower rent. Can you make do with smaller car? Has your children leave home? If yes, is it possible to review your budget? These questions and related ones must be given due consideration if you do not want to open the unwanted page.