How to escape from debts

 

How to escape from debts 

How to escape from debts why I choose this content because most middle-class peoples facing debt issues so I thought I want to share something about this with you. most Indian families facing debt issues day by day they can’t escape from there why this is happening? I have one answer for this Lack of financial knowledge this is the major problem of most persons. financial knowledge like how to control money, how to multiply the money, how to invest, where to invest, how much have to save, how to maintain a financial portfolio, etc. without financial knowledge you can’t become financially independent. If you are not financially dependent you have to work till you die, so try to become financially independent before your retirement. Minimizing debts are the only way to escape from the debt the Emi, housing loan, education loan, personal loan, credit card these are the major debts of most families you can control these debts by using your intelligence but you have to work for that your time have to spend for that. If you are young you have to work for, your future from today here the basic financial knowledge Is most important one for every individual so try to improve that first here have many sources for improving your knowledge like books, financial articles, financial news, etc. You have to use these sources for improving your knowledge here the patience is the most important quality required for every induvial so try to improve that skill. All individuals have to calculate their Emi, loans, other debts then only you can find how much money you’re paying for only interest then decide whether loans are good or not. Before going to take any loans from banks or any institution before that you must ask some questions to, yourself like why I’m taking this loan, what is the motive, how can I repay this? These questions will make some clarity so try to do this before takes any loans and other debts, Definity it will make changes. 

Knowledge about liability and asset

Every individual must have good knowledge about assets and liabilities this is the primary stage of financial knowledge. Liabilities is always lose your money and asset will always generate your income when you get proper knowledge about liability and asset then you can save your money and also you can become financially independent.

Investments

Investments are the most important factor required for every individual you must have at least small investments otherwise there automatically will create debts then you will face many risks in the future. The stock market is the best source for investing but you must improve your knowledge first otherwise you can’t become a success in the future so before going to invest in the stock market you have to decide which investor you want to be an aggressive investor or defensive investor like that. I already posted about the defensive investor and aggressive investor’s blog you can check that in the financial label’s list on this site. Investment is the most important tool, before going to invest you must have proper financial knowledge. Money has to work for you don’t work for money this statement investors have to keep in mind always try to become smart and intelligent investors.

How to choose a company for investing

If you decided for investing you must analyze the companie's well here you must analyze companies’ balance sheet, cash flow statements, other documents of the company. Here you have to too conscious because you must read the terms and conditions of the company then only you can escape from the scams. Before going to invest in a company you must analyze the past, the present performance of the company then you must analyze the management performance. 

Financial planning

All individuals have to do this financial planning otherwise you can’t achieve financial freedom in future financial planning which means all individuals have to take life protection plans like life insurance this is the first step of financial planning, then you have to control your maximum debts, then you have to start you’re investing. These are the three major steps of financial planning when you do this properly definitely you can become a success in the future. 

conclusion

Escaping from debts is not simple but you can do that by using your intelligence when you get proper financial knowledge then you can avoid or minimize your debts. Debt is a liability so try to control your debt always try to follow the above statements definitely you can escape from your debts. 

I hope this content you understand well