Managing your finances in a good way can sometimes be more difficult than you think. There are many puzzle pieces that need to fall into place and active work is required to keep their finances trim.
It is important that you take care of your personal finances all the time and make sure you get your budget together, but if you happen to have problems, it is at least as important that you handle that situation in a good way.
It’s easy to make comparisons to other things when talking about finances
A parable can be a house of cards, considering that your personal finances may in some ways be fragile as a house of cards is. If a single card falls away, the whole house can collapse and then it will immediately be difficult to get it together. It could be if you lose your job or get sick and lose your income or you suddenly get a big unexpected expense.
If you have been a little cautious and have a decent saving and a buffer for bad times, it usually does not have to be so dangerous. Then everything should not collapse just because some fall away. Even if you lose your job, for example, you should have a certain margin so that you have money to take away while you find a new job.
When expenditure exceeds revenue
When for some reason you end up in a situation where the expenses exceed the income, it immediately becomes a little difficult. In principle, this means that you either have to withdraw your saved money in order to afford to pay everything every month or that you simply cannot pay. Those who have money to take away do not have as big a problem, but they still have to make sure their budget is fixed so it goes plus before the savings money runs out.
However, it is important to add that if you constantly have problems with your income not covering your expenses then you have a fundamental problem with your finances. Then you should make changes so that you balance up income and expenses and start going plus. The solution can be both to increase income or to reduce expenditure, but usually it is easiest to cut down on expenses.
You can save money on many different things, but the big items are usually accommodation, food, car / transport, insurance and possibly luxury consumption such as gadgets, clothes, cigarettes, sweets, eating out, etc. See where your money is going and pull down on things that are unnecessary and try to find cheaper alternatives to what you need but which are unnecessarily expensive.
Unfortunately, the debt trap is not that far away
For those who do not directly have any savings capital to borrow from, this is more problematic. Unfortunately, if you live a normal life with bills to pay and without any margins in your finances, it is not so far away that you end up with financial problems. If you are right on the border, a single small unexpected expense or the like can mean the difference between coping and things starting to go to the woods.
The day you cannot afford to pay the bills that you have in front of you and have no saved money to take from, the options are usually either to not pay the bills or to try to borrow money to pay them.
Both of these options are pretty bad and they will both put you in a bad situation. If you choose not to pay bills, it will often be even more expensive as there are more than enough fees such as delay fee, interest rate, collection fee etc. In addition, the case will soon move on to Kronofogden and you will soon have a payment note registered in your name. After that, it is also conceivable that the Kronofogden will take further measures such as seizing part of your salary to pay the debts.