What is a Financial Crisis?


Financial Mess - What is a Financial Crisis by Ana Ramirez

Last months we heard here & there everybody talking about a worldwide financial crisis. 

But, what is a financial crisis?

If you want complicated explanations, I suggest you a book about economics.
Today, I would like to keep things simple and try to see this financial crisis from a different point of view.
Forget for some minutes what's happening right now everywhere with the worldwide finances, at every single level, in your country, in your city, even in the neighborhood.
Now, think about what's happening financially at your home & in your life!
Think about the way you are spending your salary.  Because, everything starts there ... if you disagree ... tell me ...
Why ... when the worldwide economy goes well, thousands of people declare bankruptcy?
Why ... when the worldwide economy is solid, lots of people don't have enought money to pay their bills and put food on the table?
Personally, I deeply believe that a financial crisis starts at the right moment when your expenses are greater than your income.
In that moment, doesn't matter how much your income is per year or per week, because there ... your personal financial crisis starts ... just a wink, a snowball becomes an avalanche.
One day you realize you have been paying debts for years and the never ends.
One day you realize you are paying food at the grocery store with credit cards because, if not ... you won't be able to put food on the table.
But ... WHY ?
Because we never receive any financial education!
We know how to make money, but we don't now how to manage our expenses.
We know how to use a credit card, but often we don't even know the interest rates we are paying.
We know how much our salary is, but often we don't understand the payroll deductions.
We know how to go shopping, but don't have any idea of how much we can really spend.
If you want a change on your financial situation, is not the worldwide economy that should change ... but the way you manage your money.
Remember ... is important to know how much money you make, but is even more important to know how much your expenses are.
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