How To Escape Poverty

The amount of people who are suffering from the ultimate poverty of being homeless is increasing rapidly due to the state of the current economy. There are many people who are trying not to become homeless by avoiding the increasing debt and poverty in order to make their ends meet. There are so many homeless people today that have had their homes undergo foreclosure. The whole entire family has the potential of crumbling before being able to get through such a situation of poverty. Following a few tips could help save you from the after effects of a severe recession that causes extreme poverty and an increase in homeless population.

1. Change the perspective you have about your finances and money in general. If you don’t think about what it is that you want in this situation of poverty you won’t end up spending unnecessary finances. Once you have this mentality it will be impossible for you to end up in a homeless situation. Keeping the mentality that money is something that always comes and goes is also very important. You need to know that you can survive poverty because money is just something to help you; it is not your only salvation. Even being homeless will not have as big of a downpour on your emotions if you keep this mentality.

2. Try to work as much as possible to make as much money in the little time that you have. Try to find out the best way to plan out the twenty four hours that you have in your day. Avoid poverty by trying to fit in multiple jobs throughout your day. There are many surprising ways to make money that you are probably unaware of. There are even ways to make money while you aren’t physically working or having to do anything the whole time. This could help you avoid becoming homeless by giving you some added income.

3. Try to get rid of as much debt as you can in order to avoid ending up homeless. People end up in situations of extreme poverty because they do not take care of payments when they are minimal and they end up snowballing into a giant mess that you can’t seem to dig yourself out of. Take on one chunk of debt at a time to get yourself out of your situation of poverty. You don’t want to have such a mess that your home goes under foreclosure and you become homeless. It will be that much harder to dig your way out of poverty if you reach the point of becoming homeless.

Try to always be prepared for the worst no matter what financial situation you are in. If you are currently far from poverty and ending up homeless; be sure to set some emergency money aside so that in any urgent or extreme case where you need money you will be prepared. Calculate your life so that you are paying your current expenses as well as saving up for your future.

Create an emergency fund. Begin by saving a portion of your income (10% is recommended by most financial professionals, but do what you can). The amount you need in an emergency fund is different for everyone. Typically you want to have 3 months to a year of LIVING EXPENSES saved. Do not begin any other investment plans until you have this money saved.

Diversify your income streams. The money you used to pay off your debt with and the money you were paying into that savings account for your emergency fund now becomes your CAPITAL. Capital is that illusive money that will work for you. Use this money, regardless of how small of an amount it seems, to create additional streams of income.