To avoid bankruptcy, the main key is to be able to manage finances well. By being able to manage finances well, we can avoid bankruptcy when the economy is not good or when facing other problems related to finances. Managing finances is indeed not easy, there will be many temptations that make us not control our finances well, but believe me, if you do it continuously, you will get used to it. So it is important to apply financial management as early as possible.
For example, by recording income and expenses, this is the most difficult thing to do in personal finance.
An accountant alone is able to record company finances, but not necessarily able to record personal finances. Therefore, you must stick to the principle, if you work, work while others are sleeping. Save while others are shopping, study while others are partying, and enjoy life while they are dreaming.
All of that can be achieved if you make a mature spending plan and a clear monthly budget. Prioritize basic needs such as bills, food, and avoid debt. If you have extra money, set aside some of your income to save and invest for future targets.
Financial management is the most important thing for anyone who has a source of income that is still tight, especially those who are in a poor financial condition, indeed it is not something that can be easily done by someone, but if they do not want to go bankrupt, of course they must learn how to manage their income properly so as not to go bankrupt.
Choosing to record all forms of expenses that we have will indeed be very good and we can see whether we have used the income we have on things that we really need or not and if there are still expenses that we don't need, then we will be able to improve in the future so that we can limit all expenses that we don't need and that way one day we will be able to achieve what we dream of with the money we have collected.
When we have prioritized basic needs and are always routine in setting aside some of our income to invest, of course this will be able to prepare for the future according to what we expect, but this will not be easy to do if someone does not have good financial management.
Come to think that rich people are really that making huge income or having tons of money but still they are really that careful when it comes into their spending on which somewhat excluding into some individuals but it isnt really that a problem since they are already that rich. How much more for us who are earning that on average income? It is really that should be automatic that you do make out some budget whenever into your spendings. This is why its really that important that you should consider out on trying out to have those strict application when it comes to budgeting on which this is really that something which you would really be needing for you to avoid those potential overdrops with your budget and ending up on having that miserable life because of mismanaged funds or money. It is really that important at least on having that kind of consideration on be keen on what you do spend specially you arent that still that having a good financial status or condition. Economic situations becomes worst overtime and its normal that you will really be mindful
on every steps that you do make and dont let yourself that just simply making up some spending iwithout having considerations on where those spendings would really be that going. So it would really be that up to
you on how you would be gonna deal up with things basing on what you are really that trying to avoid and trying to deal up with.