Complete Guide To Corporate Finance

The Business Finance Guide


Financial management does not have to be complicated. People do not have to initiate a research mission, understand the terminology and become experts in the field in order to live comfortably, financially speaking. As long as you have common sense in what concerns spending and you adopt good practices, you will not encounter financial difficulties in the present or in the future. However, people seem to keep making the same terrible mistakes that destroy their stability and give them nightmares at night. Even though financial management is not rocket science, they somehow manage to make a bad shot and bear the consequences a long period after. Some of them even tried to save money for accomplishing a goal or a wish they always had, but did not succeed. This is understandable because if you raise a great amount of money and place it within reach, you will not help but spend it. You inevitably see something that grabs your attention and you know that you afford it.

Impulse spending – making unplanned financial decisions

You do not have to lose all your money at once in order to panic and start thinking about what tomorrow may bring. Most people do it gradually, without even realizing it or without even caring. A pack of cigarettes or a night out does not seem alarmingly expensive, but if you do it several times a week, you will start noticing the gaps in your monthly budget. Sooner than you think, you might end up in debt and this is only the beginning on a destructive road, from a financial point of view. You have to understand that every dollar counts and you have to spend it wisely. Furthermore, you should also think about those payments that never seem to end.  We refer to cable television and video games that you pay for monthly without enjoying anything new. If you are living or you would have to live on a tight budget, these are the first expenses that you should eliminate.

Investing in new cars and houses without understanding the commitment

Even though people do not afford to pay for a new vehicle in cash, they still make the uninspired decision of investing their money and their future in it. They believe that since they have the possibility to pay by installments or take out a loan, they afford the respective car, but this is a huge mistake. If you do not have the required amount of money in your hand, then you are making your situation even more difficult because you will have to add the installments to your current monthly expenses, which means that you no longer afford to spend recklessly. Even more, you will have to control every financial move and change your habits. The same principle applies for the house. The number one misconception related to the purchase of a new home is that bigger is better. Well, we can definitely state that bigger is pricier, not necessarily better, especially taking into account the maintenance, utilities and expensive taxes.         

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