Six Matters That Make Us Experience Financial Problem

Recognize and learn these 6 matters well. Does one of these 6 matters cause you experience a financial problem lately? If yes, you should think the way to overcome the cause and escape from financial problem.

At the beginning of this year, I was bewildered as I read the newspaper that said that my country, Indonesia, had big potential to experience the second monetary crisis. My country experienced a great crisis (in monetarism, financial, trust, leadership) in year 1997-1998 and it caused horrible conditions even till now. I cannot imagine how trouble this country become if same thing happen again. Although all economical predictions in the beginning of 2008 are bad, still I couldn't believe this was very serious because basically Indonesia monetary condition in 2008 is better than the condition in 1997. A country's financial conditions depend on the financial condition of each family who lives in it. So it is important that each family is free from financial problem. If each family who lives in Indonesia is free from financial problem, most probably Indonesia will escape from the second monetary crisis.

This article will not discuss about the way we can do to overcome financial problem (probably I will discuss about that in another article) but it will focus about 6 matters that potentially make us experience the financial problem lately. By learning these 6 matters well, then find the solution to overcome those matters; we may escape from financial problem.

1. Inflation

   Inflation is the rise in prices and wages caused by an increase in the money supply and demand for goods, and resulting in a fall in the value of money. Our money that previously enough to buy our needs lose it's power suddenly. If our salary or income increase is less or same as inflation rate; we will experience the financial problem. Nowadays inflation rate is high in everywhere in this world, because of the fuel and food crisis. It's unavoidable, so we need to find solution to face this inflation.

2. Consumptive Behaviour

   Many families become consumptive because of influence of advertisement (through TV, magazine or other media), promotion, or discount so they buy the things that actually they don't need. As the result our expense is bigger than our income. We must distinguish between needs and desire. We must buy the things we need, not the things we desire. One day I bought a bottle of sauce because of great discount. After trying, I did not like the sauce so finally it was end in garbage disposal.

3. Waste

   Waste is the action of using too much of something (time, money, energy, effort) unnecessarily, or using those things carelessly. For example someone uses telephone to chat unimportant things for hours, and then pay the huge amount for it. The other man turns on the lamp at a brighter day. We must save energy because it is a limited source. Check how much you spend on petrol, phone bill, electricity bill unnecessarily and think how you can reduce it?

4. The Wrong Use of Credit Card

   Many people use the credit card wrongly so it is not helpful but causing difficulty.
   
   Although it can help, credit card is not a tool of help, we owe the issuing bank a loan when we use it, and this debt is not free of charge. If we don't pay our debt in the determined time, we have to bear the huge interest cost. Use the credit card wisely not to satisfy our desire. Don't only pay minimal payment because it will make your bill increase. If you can, avoid cashing the credit card to avoid its high interest and charge.

5. The Emergency Need

   This is the money, usually in huge amount, you should issue unexpectedly because of emergency. For example you should help your friend in emergency, you experience a natural disaster or you should pay hospital, doctor and medicine cost because you or one of your family's members is sick. Think about saving or insurance to overcome sudden requirement like this.

6. The Prestige

   Some people need prestige to impress others especially as a result of wealth, position, appearance, etc. Because of prestige we choose to rid a cab instead of ridding a bus. We force ourselves to buy a luxury car although our money doesn't enough to pay it because of prestige. If we don't have the budget, we should not force ourselves to spend huge money for the sake of prestige. It could make us experience a financial problem.

From above 6 lists, only inflation is unavoidable. We may try to avoid the other 5 matters, change our attitude and perception and we could be free from financial crisis.