Discovering the causes of financial crisis may well be an ongoing search because I know there are plenty of elements which will have an effect on what the results are in a market. I’m not an economist however I have my own beliefs, as I am certain you do in relation to the causes of financial crisis. Therefore with regard to today’s post let’s look over exactly what the government authorities happen to be saying and get real, since the government, along with key companies such as the banks and institutions, are likely to have their unique spin on it rather than want to get into the reality of the issue.
I ‘m not confident this will win me any pals however, you merely live once and right now seems to be a proper day to voice my view. Also I just might get some concepts out there which might support someone once the upcoming financial crisis arrives. It’s my firm belief that another financial crisis is possible again due to the fact that practically nothing has really improved, and unless issues do, we’re going to keep going on a constant spiral.
So let’s look at what I believe is most likely the significant reason for the financial crisis.
To do this I want to ask you some questions, they are uncomplicated ones and you will be able to response them with no problems:
Have you got a charge card?
Have you ever gone over your limit?
Have you previously purchased a little something you realize you should not have?
Do you own your own home or do you have a bank loan?
Maybe you have drawn down on your home finance loan to buy a little something else which was not really considered necessary?
If you take a look at your house are there several televisions and or family fridges?
How many pc’s do you have?
What number of old mobile phones are in your draws or cupboards?
What do you pay off for getaways with? Would it be your savings or possibly your “line of credit”?
I am sure you get the hint.
Many of us buy things we don’t need and keep on putting ourselves into financial debt to get the things we have been informed we have to have. Financial debt can be described as cavern of hopelessness. We’re told it is necessary to get ahead (mind you this is a lie) and if we do not own credit cards precisely how are we going to get a favourable credit record so we can get a loan.
What a joke. The banks and credit corporations are a couple of the best marketers in the world. They already know individuals have an insatiable drive to possess the newest and also the greatest. The institutions know that people detest the idea of being left out and someone else possessing something that they do not have, and Lord forbid in the event that a person does have an item the other person does not have. Most people set strain on themselves to head out there and acquire it just to compete with the Joneses. What a trick!!!
It is our greed which usually keeps us seeking more and keeps us in debt, and it really is our debt which will places undue stress upon us and stresses out our relationships and hinders us from becoming everything we were made to be.
The truth is when we have debt most of us make choices of precisely what we are able to or can’t do, where we could or are unable to visit due to the fact we are bound by means of an agreement to pay back a loan, and when we do not pay up we may possibly lose all that we think we personally own.
So what could it be that causes a financial crisis?
Well it really is very simple in my view.
- It begins with believing the lie that we have to possess much more.
- Most of us commence searching for ways to have the things we believe we need.
- Rather than spending less or even developing a small business that will grow our cash flow, many of us do the hassle-free thing and use our plastic card or maybe obtain a personal loan.
- Pressure gets placed on the market as consumers are spending too much money (money that’s not theirs because they borrowed it from the loan provider or financial institution).
- The federal government with their intelligence states that “our people are spending too much and due to the fact they are all in personal debt let us slow them down by simply putting interest charges up”.
- Interest levels rise, we stop spending.
- Organizations who thought the bubble would not burst carry on in debt themselves in order to feed the insatiable appetite of the country/globe for their business.
- When we stop purchasing, businesses just cannot afford to pay their personnel.
- Workers end up getting laid off.
- As soon as too many people get laid off at once, financial institutions can’t carry the debts and so they fail.
- Consumers get scared that they will lose all their money therefore they draw their funds out from the bank account.
- But the banks can’t allow people from taking out all their money, people stress and panic.
- This brings about additional worry.
- Many people revolt.
- Governments do a bail out.
- Governing bodies go deep into debt as well.
- Governments go broke realising they can’t cover their debt.
- Nations turn out to be owned by companies and not the people.
So my suggestions are:
- Get out of debt. Don’t have any kind of individual financial debt. If you don’t have the money start a home based business or find a way to increase your income fast…
- Start eliminating your smallest debt first, then commence compounding your repayments.
- You should not combine your debt. (this is my personal viewpoint so you need to get professional suggestions) Repay your smallest debt first simply by paying the bare minimum on the other debts. Once this smallest debt is paid back, then take the funds you were using to repay it and use it to pay off the next smallest personal debt. Keep on with all your debts. This method starts to compound and you will discover the money you owe starting to minimise speedily.
- The moment that you are not in debt, chop up your credit cards and obtain a visa/mastercard debit card.
- Maintain a financial buffer. For example, never blow everything you get paid.
- Start saving cash and get a crisis fund.
- NEVER get back into debt.
- Use hard cash.
- Figure out how to budget.
I realize this may be a pretty depressed look at things but it is fact, in my sight anyway.
It would be great to be in a position to blame someone else for a financial crisis but eventually we need to take responsibility regarding the things most of us buy and the financial debt we put ourselves in.
You see it can be our greed which starts it all and it’s the debt that continues the cause of financial crisis.
So for those who have read this far (I realize it will not end up being many, mainly because few people would like to know this information because it is simply too challenging to digest and be responsible for) whenever you want to seize control once again for you and your family can I recommend you do what some of the largest names in business are accomplishing at this time.
These are just my own beliefs since I’m not a specialist adviser.
This is my personal belief on what causes a financial crisis and what I really believe that you can do it to be able to minimise the effect of the next financial crisis for your household.
In my mind I do not believe that there’s any such thing as good debt. Debt is Debt and it’s also a lie to keep you tied up with money.
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