The change starts from you

Personal finance and getting its balance is a hard thing for many people. Today many people despite wealth struggle with personal finance and have serious problems.
Almost one in ten Finnish adults has a default mark on their credit history because of unpaid bills for example. The number of Finns with credit card and other unpaid debt is approaching the same level as during the last recession in the 1990s when it was highest. It is estimated that the number of debt defaulters will continue and break the previous record.
The Guarantee Foundation, Takuu-Säätiö, which is a national social organization, assists individuals in solving their debt and payment problems. Its counselling services are used not only by unemployed and low-wage earners but also high-income earners, which is quite new phenomenon. People with good incomes start using credit when they do not have enough money to pay their loans and bills. It escalates easily when they use credit card after credit card. Eventually the situation is very difficult and people may have 10 or 20 credit repayments.
Men have more default payments than women do. Men have incurred two thirds of the default payments. Men between 29 and 45 years buy on credit and as much as 15 percent of them have a bad credit rating.

If you have a problem with you finances you can get help. There are lot of Internet sites, books, organizations such as The Guarantee Foundation and currently-even TV-series that concentrate on private finance.
The main thing you should have is a budget. You need to have a strategy how you will spend and save. It is a way to set priorities. Is there something more important than have a standard of living you want?
The Founder and CEO of money management Web site, Alexa von Tobel, suggests using the rule 50-20-30. That rule means you should use 50 percent of your income on essential spending: rent and bills, 20 percent on savings and emergency fund, 30 percent on lifestyle choices such as gym-membership and entertainment. Of course this rule doesn`t suit everyone but it is still a good guideline.
Financial plan is like a journey from the departure point to the desired goal. People have different requirements and goals. Our financial situation chances and we don`t know what happens in the future. However, most of our financial decisions are results of our behavior. Small decisions at the department store are the beginning.

Defaulting on debt grows. 2014. YLE News. Http://

14 smart personal finance tips for 2014. Money Today Feb2014. Http://

Gerstner, Lisa. How to stretch your money. Kiplinger’s Personal Finance Jun2014.

Harrison Debbie 2005. Personal Financial Planning: Theory and Practice. EBook.

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3 Responses to The change starts from you

  1. vioko says:

    good tips, and a very informative post.

  2. milaemilia says:

    I found the topic interesting. I guess the people who struggle with their personal finance might regret their decisions afterwards when they are paying off their debts later..

  3. ellajuvonen says:

    Very interesting and important topic! You have also found useful tips.

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