BookGUIDE To Get Out of A Domestic Economic Crisis

HOW TO GET OUT OF A
HOUSEHOLD ECONOMIC
CRISIS
AND NOT FALL AGAIN
Hunnapuh Xbal
Copyright © 2019 Omar Nieto
All rights reserved.
ISBN:
DEDICATION
For my wife Evelyn, who has given me her unconditional

support in this writing craze and with whom we have put
into practice much of what stated in this little book.
THANKS
To my creditors, for motivating me to find a way to control

and settle the debts I had with them, my employers and
clients for giving me the opportunity to perceive the talents
with which I was able to make First, to my family for
having been by my side in this fight, battle after battle...
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How getting out of a household economic crisis… And not fall again
AS A PROLOGUE
In this world, ruled by market, excess in the supply of

consumer goods, services and almost universal access to
bank credit, we might fall victim to our neglect or
mishandling of our personal or household economy.
Loans, credit cards, the purchase of luxury goods that we
do not need and that we cannot afford with our income,
can lead us to a state of bankruptcy and an economic
crisis.
It seems that the credit card is an artful and ladino elf that
deceives us irremediably, since it allows us at any time, to
have money that is not ours.
But the credit card will give us money only as long as we
are solvent with the minimum payment at least and while
we still have available balance because once it is
exhausted, we prepare ourselves to have a debt that will
eat us up to the entrails.
The interest rate we must pay for this immediate and
plastic credit is much higher than that of any other
financial transaction.
Therefore, we are in danger of falling into massive debt if
we do not pay attention to it, because with the minimum
payment, we are barely paying the interest and the debt
remains intact.
5
The minimum payment barely touches the capital of the

loan, leaving the balance of the debt without decreasing
to the point that we can spend years paying without being
able to cancel the credit.
Many of us, because of the aggressive credit offers of
financial institutions, have two or more credit cards and
not handle them properly, instead of a massive debt we
have two or three large debts that are difficult to repay.
To this we add the mortgage of the house that of car that
of several warehouses that offer us products to the credit
that we buy without control, accumulating debt until we
reach the state when we are burned out.
What we do in most cases is blame the greedy capitalist
system that cheats on us, and we declare ourselves
victims of a worldwide conspiracy by a small group of evil
and dark millionaires, who are determined to push
ourselves into asphyxia.
In the end, we look for someone to blame for our
disastrous economic situation, but we do not want to
acknowledge that for the most part, our problems are due
to our responsibility.
Taking on and becoming aware of our real situation is the
first step to get ahead, although the Bilderberg Club
exists, this conglomerate, although it benefits maleficent
from the terrible economic management we do, it is not
responsible for our financial misadventures.
We're not going to lie to him. This guide is not a manual
of secret or mystical formulas to become rich, successful,
captivating or influential, nor will it give your person the
perfect balance of life, with which it will transcend your
spirit from material need.
This guide will give you a few simple, useful, and practical
tips that are not complicated to implement, things that
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you may already know and that don't require you to

change your way of being or transform your thought and
attitude to life, must change its position to debt.
On the other hand, if your current economic situation is
of solvency because it is not necessary to make a review
of the steps that will be presented in this document to
corroborate those that already apply or to implement one
that you consider useful to improve your condition.
If, on the other hand, you are in a delicate economic
situation, I invite you to start going through this short
guide, step by step until you can solve or solve your
problem and reach the point of tranquility, without debts
that overwhelm you or with mortgages, but controlled,
they do not unbalance or unbalance him.
Having clarified these points, I would ask you to read this
document openly, first accepting that you have a severe
financial problem and that you will be in the real deal with
the actual willingness to want to get out of the situation
in which you are.
The guide consists of ten steps that you can follow in
sequence, simultaneously or in a different order, that
doesn't matter, what matters is that you solve your
financial liquidity problems and do so as soon as possible.
At the end of the guide you will find some tips on finance
and home economy, please pay attention to the chapter
that explains how bank lending works, will help you
understand how to take advantage of the financial system
to get out fast of a debt.
Without further ado, you left with the ultimate guide to
managing your finances.
7
HOW DO WE GET INTO A HOUSEHOLD

ECONOMIC CRISIS?
In economic matters during our life, we can live many
situations that will lead us to different financial scenarios
of which the most common are:
· We earn little money and mismanage our money

· We make much money, and we mismanage our
money
· We make little money and manage our money well
· We make much money and manage our money well
You don't have to be an economic guru to know that the

last two situations will hardly lead us to a financial
problem unless a real disaster occurs outside our financial
management, but with the first two situations, the
possibility of having economic problems is quite large,
even if we have good incomes.
We may have several credit cards and are at the maximum

usage limits, creating a severe problem of dangerous and
unsustainable indebtedness, because, even if we have
enough income to pay the high fees, unforeseen events
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can trigger disaster.
In these times, it believes that success in life directly

linked to the economic level we have, and this leads us to
aspire to live with the comforts and luxury offered by the
market.
Sometimes we want to appear to have an economic level

that we do not have, and then our level of expenditure is
not in line with our income, and we must resort to credit
to cover living conditions that we cannot afford.
We have likely lost money on an investment that did not

work as we expected and we find ourselves in the of many
accumulated debts that drown us and end up with the
income we receive either by work, business or by other
means.
It may be that we are not so indebted but that our

expenses are consuming almost all our income.
Even if we have good incomes, maintaining a high level of

expenses for things that are not indispensable to our lives
puts us at risk if we do not create a savings reserve.
In a period of crisis, whether we lose our jobs, suffer a lack

of sales, loss of business, or have an event that
compromises our resources, we can end up with
economic problems.
Many situations that are sometimes out of our reach can
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put us at risk.
We can even be very orderly with our money and have a

very financially sound situation, but for some external
reason, we must go into debt, for example, to cover an
illness or accident of a family relative or our children, pay
an accumulated deficit.
This unusual situation can lead to a financial collapse in

our lives, even if we have been forward-looking and
practice saving.
For many of us living in countries with little public

certainty, there is a risk of being victims of crime, of a
severe accident, an unexpected illness, an accumulation
of bad decisions or a stroke of fortune in business that will
lead us almost to ruin.
The causes of an economic problem are many, and the

measures to prevent them are a matter that we will see
later, let us start from the fact that we are currently facing
a domestic economic crisis and that we have to find a way
out of it.
To do so, we must continue reading and comply with the

recommendations presented in the form of consecutive
steps or stages shown below.
We're not going to start with bits of advice like "Repeat

yourself that you're wonderful," "Give yourself a hug,"
"Look in the mirror and find the person who's going to
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change your life."
As we said, this isn't a magic formulations manual or a

self-help text, is a simple guide, but it is a practical guide
to getting out of an economic crisis.
We have divided the process into ten practical and

straightforward steps to achieve leveling our finances,
getting out of a domestic economic crisis, or at the best of
cases, making sure we don't fall into one.
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STEP 1. ACCEPTING THAT THERE IS A
FINANCIAL PROBLEM IN MY LIFE
Before we start a process of economic conversion in our

lives, we must be clear about the reason behind it.
That is why we must take the first step, which is to accept

that we have a financial problem in our lives.
This is the most important step because as if it was a vice,

call it alcoholism, smoking or drugs, the first step to
recovery, in this economic case, is to accept that we have
a problem and in this case the problem we have is with
our money and money and how we handle it.
No matter if there was a time when we made a lot of

money, the point is that at the moment we no longer have
a stable and abundant source of income, we also have a
pile of debts that wipe out all revenue, and we do not
reach what we earn to pay for them.
But many times we find it difficult to admit that we have

a terrible financial situation and we intend to continue
living with the standard of living before the disaster as if
nothing had happened, thinking that things will soon be
fixed on their own if we give them enough time.
We deeply regret having to tell you this: There are nothing

falser and more wrong than thinking like this.
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If we have not attended the problems promptly, they tend

to grow to the point where they overwhelm us and end
up suffocating us, unfortunately, this is a universal law.
So, before we try to execute any activity, the first and

most important thing is to become aware of our situation,
to accept that we have or that we live in a moment of an
economic crisis that has us in severe problems, but that is
a situation that we must attack and resolve urgently.
Accepting the mistake is one of the most challenging and

painful things we can do in our lives, but at the same time,
it is one of the most liberating because it takes us out of
the bubble of complacency that we find ourselves in, that
hides reality from us.
It is not a question of self-flaking and falling into a spiral

of guilt, self-commiseration, and depression, if it was our
fault or external agents is not the point.
We should not care by the moment, and we will already

have time to correct our conduct or act on those agents,
at this point the important thing is to be clear and fully
aware that we have a problem.
Once this step has taken, we can take the next step to be
able to search, find and apply a solution that will take us
out of the way and allow us to move on with our lives.
Please do not continue reading if you have not assumed

and accepted this first point, as it will serve you to take
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the next step that can be even harder than this one.
14
STEP 2. REPORT THE SITUATION TO
OUR CORE.
A big mistake that made in times of financial crisis is to try

to hide the situation from our nearest core, whether
family, friends, or co-workers.
It is a logical attitude; we are ashamed that others know

that we do not earn enough or that we are in economic
trouble.
We have some ideas as these because it has implanted

into our heads, thanks to the constant bombardment of
the entire mass media, that continually shouts at us that
the measure of success in our lives relates directly to the
level of our income.
A lot of people believe that to ensure success, you must

project it with clothes, the car, the smartphone, the area
where you live and other superficial things, that we all
know, is a lie.
On the other hand, we all fervently hope that our loved

ones will not have to suffer at any time economic
hardship. We want an environment of financial stability
for our families.
This situation almost invariably leads us to lie, to hide the

problem in public, even in the privacy of our home and to
15
present to others an aura of happiness and fulfillment

that we cannot sustain, which is gradually leading us to an
ever-deeper hole and from which it is complicated to get
out.
To think like this is a mistake because no matter how hard

we try, we will not be able to get out of an economic
problem on our own if we are part of a family nucleus,
especially if we do not have the understanding,
collaboration and decisive support of all of them.
The problem must discuss with the people closest to us,

that is, with our "stakeholders," starting with those who
can exert the most considerable influence and significant
support in our lives, such as, for example, the spouse,
parents, siblings, partners, and others.
The problem must discuss with the people closest to us,

that is, with our "stakeholders," starting with those who
can exert the most considerable influence and significant
support in our lives, such as, for example, the spouse,
parents, siblings, partners, and others.
This talk must do bluntly, and it is an essential step to be

able to get ahead.
We will have all your support and your unconditional help,

if we speak sincerely and ask you for the help we need,
not in money but in supporting what we are going to do.
They should have a clear picture of the situation and the
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actions you have planned to take to resolve the financial

problem.
It can become a harrowing moment, to such an extent

that it even creates a negative or positive tipping point in
our relationship with these people, but it is essential to
carry out this step.
It is hard, possibly the most complicated and difficult

decision to make, and requires much confidence in the
family nucleus, but it is essential for the measures taken
from this step to be active and do not cause conflict or
discord.
Talk to the person closest to you first, do it, frankly,

explain the real situation regardless of the causes that led
to this state.
If you need to explain figures widely, amounts and

reasons, do so, but don't forget at any time that you don't,
it is about entering a discussion to determine guilty.
You must assume your faults and make it clear, avoiding

pointing out the mistakes of your interlocutor, this is not
the time to ventilate these matters.
Don't let the problem lead to other unresolved conflicts,

that's not the time and doing so will only lead to useless
discussion.
That is to say, do not turn this moment into a reason to
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fight or allow it to taken as a pretext for a disagreement,

it must speak sincerely, clearly and directly, without false
justifications or excuses, but above all without
recriminations, so as not to hurt feelings and result in a
bitter and useless discussion.
You must raise to this person the problem in which you

are and make it clear that you need your full support,
rather than economic, you need the sincere
accompaniment to accept and support the measures that
you will both take.
Having his support guaranteed, which almost always will

get it, you will be able to explain the situation to the rest
of its core.
If you find rejection and incomprehension, do not get

exalted, it is challenging, but try and keep your sanity and
firm your position, your mission was to inform, and you
already did
Then we should tell the problem of those who depend

directly on us in a less alarmist tone.
You must try to make them understand that as a group,

we will be having a hard time, that it can be hard but that
it is transient, not definitive.
And that while we immersed in the problem, we will have

to rearrange our expenses to meet the immediate needs
and be able to be a better situation later.
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We should not panic those who depend on us, but if we

let them see that they must work with their
understanding and attitude so that we all succeed.
Be sure that in no way will show this sincerity will make us

look less in the eyes of our loved ones, but on the
contrary, it will lift us before their eyes because we are
confident enough that they are part of the solution of the
problem.
After this stage, that is very hard, and we can move on.
Please, as with the previous step, do not miss this point,
because the success or failure of the measures you will
implement later will depend in no small extent on
performing this exercise of trust.
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STEP 3. EVALUATE, MEASURE,
CALCULATE AND UNDERSTAND OUR
SITUATION.
Now if we have already passed the first two stages,

we are ready to get to work, but excuse me that we
insist, if you have skipped one or the previous two,
please run them, you can ideally start here your
recovery process, but you will face conflicts if you
have not resolved the first two steps that presented
earlier.
Assuming the first two stages already resolved, let's
go to the next one.
He credited to the English physicist and
mathematician William Thompson, known as Lord
Kelvin the phrase:
"What is not measured cannot be improved, and

what does not improve is always degraded."
If we already agree to have an economic problem

and our closest beings are willing to solve it together
at best, and on their own in the worst-case scenario,
we must know the real magnitude of the problem to
be able to deal with it with the right method.
To have this measurement, let's do two simple
exercises:
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DETERMINING OUR TOTAL MEDIUM-

AND LONG-TERM DEBTS
The simplest method for assessing our economic
situation is merely listing debts, past, current, and
future, i.e., making a list of our total obligations, to
know the magnitude of what we must pay in the long
or medium term.
Example:
ABC-555 Credit Card= US$ 1,500.00

XYZ-777 Credit Card = US$ 3,056.23
Auto Loan = US$ 8,245.00
Home Mortgage = US$ 145,345.00
Total, long-term and medium-term debts of US$

158,146.23
With this data, we are ready to understand the

magnitude of our debt, global, and the result can be
shocking.
But, attention, please!
This knowledge should not lead us to panic or worse,

to suicide, we are not doing it to go to throw
ourselves under the tires of a bus, or to give
ourselves to the unlimited drink, but to know the size
of the monster we are facing.
21
Remember.
“What is not measured cannot be improved…”
ACCURATELY DETERMINE THE AMOUNT

OF OUR PERIODIC SPENDING.
It means that depending on how often we receive our

salary or income; we must spread our payments over
those same periods.
That's mean, if we are paid once a month, we must

make a payment per month of our debts, if we must
pay fortnightly, we could distribute the amounts in
the two fortnights or if we paid weekly.
We must distribute our expenses correctly to pay the

quotas owed and to be able to cover current costs
without leaving anything outstanding.
First, we must detail the current expenses in defined

periods, for our example, we will do it fortnightly so
that we will record our expenses in fortnightly
periods and these periods we will accumulate them
in a monthly period.
It is better to manage the consolidated every month

because, in this way, we will be able to maintain
effective control of the state of our finances.
22
A practical example, Number 1:
In this model, some expenses listed on thick lines,

but some must be listed separately.
In this example, groceries and food, these lines

should be carefully detailed separately.
We must do a thorough analysis of the costs of each

item, e.g., milk, sugar, cereals, vegetables, fruits, and
others.
Consumption should detail for each period to

monitored and the amount of the total expenditure
for the fortnight should note in the final table.
Preferably rounding the figure to have a small

reserve of money, for example, if the expenditure
gives us as a figure: 235.58, enter 250.00.
If an expense paid on a specific date recorded in the

corresponding fortnight and if it reported in the
month, half can be divided into every fortnight, do so
as you see fit.
Suppose we are paid the salary fortnightly and then

we can distribute the expenses in two monthly
periods of fifteen days each as follows:
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Expenses 1 Fortnight 2 Fortnight Total

Food, groceries, supermarket 500.00 500.00 1,000.00
School fees 150.00 200.00 350.00
Basic services: water, electricity, gas 300.00 - 300.00
Others: Telephone, Internet, Cable TV - 200.00 200.00
Security - 50.00 50.00
Vehicle Quota 250.00 250.00 500.00
Credit Cards 190.00 200.00 390.00
Home Mortgage Payment 400.00 400.00 800.00
Yoga Classes 125.00 - 125.00
Vehicle maintenance costs 75.00 200.00 275.00
Gasoline and lubricants 100.00 100.00 200.00
Clothing and accessories 125.00 150.00 275.00
Meals in restaurants 150.00 125.00 275.00
Weekend outings 150.00 150.00 300.00
Total 2,515.00 2,525.00 5,040.00
We must detail all the costs, without abstaining one,

although we think that it is an occasional small expense
irrelevant and that it will not affect our budget, let us
detail it.
Now comes a crucial and delicate point, if we have "secret

expenses," it will be an excellent time to put them on the
table, clarify them, or eliminate them.
It is not our intention to become moralistic, but the truth

is that it is a problem to be hiding any expense from our
families, because sooner or later they are discovered and
then we must face the consequences, at this point it is
about putting in the same list all expenses and eliminate
those that are expendable.
If you have no choice, you should consider it as an extra

that you have to admit, but it is advisable to affect the
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economy of your core, look for a way to eliminate that

expense until you are in a position to cover it, without it
means sacrificing economically to those who consider
their true family nucleus.
It often happens that in reality, these additional dispenses

are those that lead us to a state of the personal financial
crisis, so, if this is your case, dear reader, I recommend
that you seek other help because your problem goes
beyond what only Economic.
Now let's stop again here.
Let us be clear once and for all that this guide works if we
follow the steps to the letter, we insist on emphasizing
this because we know that the method actually works, but
as long as all the requirements set out in this guide are
met 100 percent , otherwise you will have mediocre or
zero results that will disappoint you.
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STEP 4. OPTIMIZE OUR SPENDING LIST
Let us then return to our expense control tab, at the

moment we are ready to take the machete and cut expendable
expenses, that is to say, those that we can eliminate because
they are unnecessary in addition to reducing those that we
can reduce without affecting our survival.

Food, groceries, supermarket 375.00 375.00 750.00
School fees 150.00 200.00 350.00
Basic services: water, electricity, gas 300.00 - 300.00
Others: Telephone, Internet, Cable TV - 150.00 150.00
Security - 50.00 50.00
Vehicle Quota 250.00 250.00 500.00
Credit Cards 190.00 200.00 390.00
Home Mortgage Payment 400.00 400.00 800.00
Yoga Classes 125.00 - -
Vehicle maintenance costs 75.00 200.00 275.00
Gasoline and lubricants 90.00 90.00 180.00
Clothing and accessories 75.00 50.00 125.00
Meals in restaurants 150.00 125.00 -
Weekend outings 75.00 75.00 150.00
Savings on annual registrations 75.00 75.00 150.00
Savings for celebrations 50.00 50.00 100.00
Total 2,105.00 2,165.00 4,270.00
We can note that in this new version of the budget, we

have eliminated two expenses that we can do without since
Yoga can continue to practice without having to attend a
specialized gym and meals in restaurants are not something
indispensable for our life.
Also, we have reduced spending on other items such as
clothes and weekend outings, without eliminating them since
somehow, we must be presentable and have some fun in the
week for mental health.
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In this case, we are "saving" four hundred dollars from

the original expenses, perhaps in the first scenario our
income did not cover those expenses, and we paid it with
credit cards, turning the debt into an endless cycle that in the
end, we were going to finish drowning.

Total original expenses budget 2,515.00 2,525.00 5,040.00
Total budget adjusted expenses 1,980.00 2,040.00 4,020.00
Difference (monthly savings) 535.00 485.00 1,020.00
Those four hundred dollars cease to become debt, and

now the budget is achievable with our income.
Also, we have added two lines of "savings" that we
didn't have.
It's essential to make small savings for expenses that
we know we can't avoid and that are once or twice a year,
such as annual school tuition or birthday parties.
An important date should celebrate with something
special, but it's easier if we have a savings amount
available.
We must have the discipline to set aside these small
amounts from each payment or income we receive.
We do not intend to suddenly enter a Spartan regime
that will only bring internal conflicts with our family
nucleus, and it is about adjusting expenses, eliminating
the unnecessary, reducing what can be reduced and start
to generate a culture of savings.
However, first and foremost prioritize the debt, if it is
necessary to cut even the savings for recreation, it must
do, until the financial situation must have been clarified
with the family core so that everyone is aware that they
are in a "special period " that should not be permanent.
In the supermarket, we can reduce the purchase of
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unnecessary items or those that we can do without as

Spanish olives filled with caviar, for the weekend wine or
the dozen bottles of that dark English beer that we love
so much, but that is expensive in light of our budget.
Many times, we buy something that already exists in
our pantry and ends up accumulating, so the expense
increases because also, we buy things that we do need.
I remember a time when, in our house, we had a lot of
garbage bags because every time we went to the
supermarket, I would buy with one or two packages.
I thought we didn't have any bags, and, in the end, they
accumulated so much that when we realized it, we went
almost six months without buying garbage bags.
In this case, it was not a problem because the bags do
not have an upcoming expiration date, but if the product
had been perishable, we would have lost it in this time.
The best thing to do is to take a thorough inventory in
our pantry and then make a list of what finished and what
needs to be bought, leaving aside things that are not
essential to our life.
Many things are "hidden" in the background; that is
why we buy items that we already have, the review of the
pantry should be done slowly and in-depth.
A shopping list is a valuable tool that we must always
have well prepared and if possible updated with prices, as
it will help us plan and control the expenses that we must
make to supply food, food, utensils, and home and
personal grooming products.
In the annexes of this guide at the end of the book, you
will find a series of tips for doing efficient shopping in the
supermarket.
Clarifying and measuring our financial situation is a
step that is very important to meet. We must be clear
28
about what our financial obligations are mandated and

give them a priority.
We must prioritize debts in repayment and dispense
with what you do not pay to pay these debts.
Ordering and prioritizing our expenses are also a huge
step and to some extent complicated to take, since people
quickly adapted into a way of life and suffered a lot by lost
something we had, even if it is not a priority or vital for
our Existence.
The work of establishing and adjusting our budget in a
systematic and controlled way can be depressing in some
cases, but we cannot avoid it, and it must be executed
correctly and entirely if we want to get out of the crisis.
Then, hands to paper and pencil and let's start
working.
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STEP 5. COMPLETE AND FOLLOW A
DOMESTIC BUDGET
The next logical step once established the detail of our

expenses is to finish the budget of income and egress, this
will allow us to fine-tune the pencil in terms of the
financial situation that we have.
We already have the periodic expenses defined, now
we must add the income that we have, and we are ready
to take stock of revenue and profit that allows us to clarify
our real financial situation.
Now we add new cells to include the income from soil
or another source, we add the sum of these incomes and
put it as total income.
We also add the expenses and underneath these two
big groups, income and costs, we create a line below that
will have the result of the operation: Income minus fees
(including the savings line as an expense).
This result will be the final balance of the fortnightly
period, monthly or of the time we are controlling.
Savings are a remnant that we can then use, but it is
not worth making it available because there will be a
temptation to use it.
In the end, the balance of the period must remain as

the starting balance for the next, and we can adjust our
budget with the remnant, thus, as we get out of debt lets
to improve the statement until we can have some
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solvency.
January February
Budget 2020
1 Fortnight2 Fortnight 1 Fortnight 2 Fortnight
Beginning balance - 46.00 77.00 17.00
Net Revenues
My Wages 1,025.00 1,126.00 1,025.00 1,126.00
Spouse's salary 945.00 945.00 945.00 945.00
Cosmetics sales 181.00 125.00 75.00 25.00
Total net Revenues 2,151.00 2,196.00 2,045.00 2,096.00
Savings
Purchase of school supplies 75.00 75.00 75.00 75.00
Celebrations 50.00 50.00 50.00 50.00
Total Savings 125.00 125.00 125.00 125.00
Expenses
Food, groceries, supermarket 375.00 375.00 375.00 375.00
School fees 150.00 200.00 150.00 200.00
Basic services: water, electricity, gas 300.00 - 300.00 -
Others: Telephone, Internet, Cable TV - 150.00 - 150.00
Security - 50.00 - 50.00
Vehicle Quota 250.00 250.00 250.00 250.00
Credit Cards 190.00 200.00 190.00 200.00
Home Mortgage Payment 400.00 400.00 400.00 400.00
Vehicle maintenance costs 75.00 200.00 75.00 200.00
Gasoline and lubricants 90.00 90.00 90.00 90.00
Clothing and accessories 75.00 50.00 75.00 50.00
Weekend outings 75.00 75.00 75.00 50.00
Savings on annual registrations 75.00 75.00 75.00 75.00
Savings for celebrations 50.00 50.00 50.00
Total Expenses 2,105.00 2,165.00 2,105.00 2,090.00
Balance 46.00 77.00 17.00 23.00
In addition, the savings we use it when necessary, for

example, if we save for purchase of school supplies, at the
end of the year it will be used, this savings works if you get
into the bank so as not to touch it, otherwise if we keep it
as accumulated cash, we'll spend it in some supposed
emergency.
There are many free apps for spreadsheets or for our

smartphones that can be used to make it simpler, you only
need the discipline of doing this exercise on every
payment or expense you make, to record all the
consumption transactions, food. Moreover, fight not to
31
get out of the budget.

The key to success is the discipline of writing down all
expenses and controlling those expenses according to
what we have programmed, not to leave a millimeter of
the plan drawn up.
The budget can change according to the
circumstances, nothing written in stone, but we must not
get out to satisfy a whim but only to solve an unforeseen
expense or receive an income unexpected.
For example, we receive more money for been made
over time, receive a bonus for sales, a prize. First, we must
prioritize the debts, increasing payment fee, then leave a
small part, tiny, to celebrate, either with a good dinner or
purchase something not budgeted, but which covered
with this minimum part of the extra income.
An ideal scenario would be that all surplus where
saved, it is imperative to create a culture of savings, that
allows us to prepare for any unforeseen events.
If we have a debt build-up, instead of saving the
surplus, we should apply it to lower the debt until we
catch up.
As we adjusted spending, in the previous step, it is
possible that our income now if it covers the expenses,
allowing a minimum surplus that we can save.
But if when confronting our income with losses we still
exceed and continue in red numbers, then again to take
the pruner and cut the expenses that are not
indispensable.
Let us remember that this situation will not be
permanent, but if we get to recover financially, with this,
we would already have formed a family budget that must
be known to all.
If we can take this step, we will already be well on track
32
in our struggle for economic stability.
33
STEP 6. FACING OUR CREDITORS
First, we must be aware of our debts and our ability to
pay, so once we have the calculated budget, we must face
the creditors, not to fight them but to make clear to them
our situation and disposition to fix the problem.
If they are credit cards, banks or warehouses, we must

approach to discuss our situation and agree on a payment
plan that fits what we had planned to pay periodically, i.e.,
to look for the fees that we had previously calculated set
our budget.
This negotiation process is worth doing with advice from

a friend who understands this kind of thing since the
debtor usually threatens that the cancellation of the total
debt should be active immediately or they will initiate
garnishment process.
In most countries, there are already regulations and

agencies that support debtors in this type of procedure,
so it would be excellent if before contacting their
creditors, they would approach one of these agencies to
seek support and advice.
Generally, financial companies do not like to initiate
34
collection lawsuits, as they are long, cumbersome, and

expensive for those companies.
There comes the point where debt falls into the category
of uncollectible account and what they are interested in is
recovering the capital, not continue to increase the
deficit, so if you offer them a constant and guaranteed
repayment plan, they will end up accessing.
If necessary, you will have to adjust your budget to the

new quotas agreed.
Taking this step requires courage and determination since

it is natural to be ashamed of a situation of these, but it is
about our financial stability and that of our family nucleus
so we cannot start a process of economic recovery
without having before discussed and agreed with our
creditors.
The longer it takes us to get closer to the debtor company,

the more complicated the situation of our accounts will
become, because not only does the amount that is a due
increase, but also the legal steps that developed as the
time progresses are more and more complicated
definitive.
If the forfeiture reached, it will be complicated to solve it

for all parties.
Because, with specific variants and depending on the

current laws of each country for situations like these, you
35
cannot leave a person on the street.
I mean, that you cannot confiscate your assets absolutely,

but you get to situations of partial seizure of the salary or
certain assets under strict statewide control that becomes
cumbersome to handle for the companies and obviously
for the debtor.
As well, so it is preferable to fix a mess of these, "in good

terms."
Let's not be afraid, much less embarrassed to have wrong

time in a financial institution facing our creditors, for all of
us; it is admirable the person who meets their problems
and gives them the face immediately before it becomes
unsustainable.
These steps recommended for the debt negotiation

process that is:
1. Find out about the debt. You should be clear to

who you owe, how much you owe, and the terms
of this debt, review contracts, receipts, and any
documents you have about your debts. Each
debtor has the right to verify the reality and
amount of the debt, as well as to ask the creditor
to send him the documentation he has in his
possession associated with it to verify it.
2. If the creditor has contacted you, do not ignore
your communications, please call them to see
your willingness to reconcile, first, avoid moving
36
to another level that would be an external

collection company. Banks usually give the time
within a few months before escalating debt to the
recovery department or an external collector,
avoid reaching this point. If that is the case, you
will lose a great deal of ability to negotiate debt
and achieve flexible conditions.
3. Prepare a realistic repayment plan and present it
to the creditor, negotiate this plan as far as you
can avoid accepting something you can't pay, in
most countries, there is a limit on the pay
embargo; you can't take away all your income.
4. With the payment plan you have proposed,
negotiate with the creditor, they are interested in
getting their money back, they don't want to
enforce the mortgage or other guarantees,
because it's not their business to accumulate
assets that then sell, they want their money as
soon as possible.
5. Adjust your budget to the agreed payment plan
and fill it to the letter, if your employer accepts a
discount order you will no longer have to decide
anything, you will deduct from your salary, but if
the payment left in your hands, do your best to do
your best. If you managed to reach an agreement,
check if you have already considered the agreed
quota in your budget if the fee is higher than you
had budgeted, continue to cut expenses until you
reach the agreed amount, preferably exceed it,
37
we would explain later why.
In the annexes to this guide, you will find a useful, detailed

explanation of how bank lending works and how you can
take advantage of that knowledge.
38
STEP 7. BEWARE OF DEBT
CONSOLIDATION OR REFINANCING
Many financiers offer you as an escape from the debts,
financing to consolidate several small and medium-sized
debts into a more jumbo loan or refinancing an existing
mortgage.
May be attractive to the debtor because instead of paying

many fees on various loans, it can be consolidated into a
single installment to be paid or with a longer time to
achieve a smaller monthly amount.
Sometimes the repayment of a loan is so large that you
cannot pay and by refinancing, you extend the time, and
the payout becomes smaller.
Probably we think that are perfect solutions, but they
have risks, and in the following sections, we will review
the two possibilities that may present:
CONSOLIDATE DEBTS.
Consolidating debt means that, if you have many small
obligations with various creditors, you must be paying
multiple monthly fees at different interest rates.
Some of these lines of credit handle interest rates that

near usury practices.
It's a real problem to pay a lot of loans in different
39
financial entities.
Thus, instead of paying all those small fees with your

accrued and dispersed interest, you make a single loan to
cancel all and you are left with only a monthly amount to
pay with a slightly longer time, even sometimes with less
interest rate and therefore with a lower amount payment.
So far everything sounds perfect, but, watch out!
If you finance a small group of loans ones with a larger

one, you should make sure to cancel all the ones you
planned to pay without leaving one open.
Because sometimes it happens that the cancellation of

some of the debts omitted, to use the money in "another
urgency" or you set aside a portion of the money to have
a little "liquid," which generally squandered. Paying a
financial commitment to a larger one is dangerous
because it only increases your debt level and extends it
for longer.
That's why you should also have the discipline and the
care of not getting back new loans because you will have
again, a lot of small debts and on top of that such a hefty
fee for the loan you made, that you will no longer be able
to manage your precarious financial equilibrium.
Often happens this situation with credit cards, some

people have multiple credit cards with different balances,
and sometimes everyone is maxed out.
40
Then, we use the loan to consolidate all those debts, and

although we leave the balance of credit cards to zero, we
do not close them.
We soon fall into temptation and start using them again

beginning a vicious cycle that takes us after a few months
to be with a financial obligation to consolidate add up to
a lot of medium-sized debts back, leaving us in an even
worse position than we initially had.
This possibility is the danger and trap of debt financing.
Summarizing:
By concentrate debts with a consolidating loan, we will

have a single financial commitment, possibly with a
smaller share than the sum of the fees of small debts, but
with a very long term that will leave us vulnerable to fall
again.
REFINANCE A CREDIT.
Similar is the case of refinancing, which is to make a new
credit for one that we already have, with a longer-term
and sometimes even with higher amounts.
Many of us resorted to this type of loan because we are

so late in our payments of some uncontrolled loan that
the initial debt rather than decreasing, then, increased by
the accumulated interest.
That's when we can fall into the offer to refinance it,
41
making a new loan for a more substantial amount and

longer-term to start again from scratch to repay a loan
that we had probably already paid for for several years,
losing the value of these fees we pay for so long.
Falling into this situation is dangerous because, on the one

hand, we were paying money that did not amortize the
debt, but only served to cover the interest, while our
initial debt remained the same or at worst increased.
This type of operation should also to be used very

cautiously and only in case we have no choice because we
have fallen into frank arrears and it is impossible to catch
up on the conditions that the financial one demands.
In both cases of individual funding, we must be careful not

to continue to go into order to avoid making our situation
worse.
If there is no choice but to acquire such a debt, let us

remember that it is a medium-term financial obligation
for a relatively large amount, so it works according to the
bank interest model.
This kind of loans has particularities than most of us we

do not know or believe we are unaware, but that they
could use for faster and more effective debt settlement.
We strongly recommend that you read in the annexes to

this guide, the chapter dedicated to understanding how
bank loans work and how to take advantage of credit
42
characteristics with declining bank interest.
In short, use refinancing only if your debt reached a truly

unsustainable level where it is impossible to give a fee
higher than the minimum payment.
But once this type of credit is applied, you'll be very

cautious and have a lot careful to go into debt again.
43
STEP 8. EXECUTE THE BUDGET.
Past the trauma of fulfilling all the above steps that

culminate in developing the budget adjusted to our
economic reality comes a very complicated step, no one
said that it would be simple, but that is the only one that
can guarantee us to finish our recovery plan.
Having the discipline to stick to the budget
We mean sticking one hundred percent into what we have

written and programmed, here we will likely receive
complaints and claims from the whole family for budget
cuts.
Mainly if we were used to not measuring expenses and

please with our whims at the expense of our financial
stability, at this point we must be transparent with our
family group; everyone must be aware that it is a
temporary period of stabilization that we must suffer to
get ahead.
Running the budget means taking paper and pencil at the

time of receiving our salary, setting aside the money
needed to make the principal payments, and making
those payments on time.
When we receive our income, the first thing must be to
44
pay the debts, then set aside the survival expenses (food,
food), then separate the designated to the daily living
(transportation, tolls)
If we have a custom that in the noon we go out for lunch

to a dining room or restaurant, we must stop this practice
and start bringing our lunch, it's healthy, and it is spent
less, no matter how cheap the dining room or sausage
stand.
Many people for convenience leave their home without

breakfast and buy something light to eat with coffee and
as cheap as it is a fixed expense that will always be more
than preparing your breakfast.
When you eat what you make at home, eat healthier, and
spend less money.
Our expenses must conform to our permanent income,

and any extra income must be applied to cover our most
pressing debt, not necessarily the largest.
For example, the mortgage of a house is a substantial

debt, but it is a long-term planned debt, and that if carried
correctly, we do not run any more significant economic
risks.
However, in the case of credit cards, we face a hazardous

type of debt, because they usually have a considerable
interest rate.
45
Accumulated interest on credit cards can put us in

financial danger if you do not pay promptly.
We must first seek to pay the debts for poorly managed

credit and readjust the budget every time we leave a
commitment to prioritize another until we are free from
extraordinary obligations.
It is about prioritizing the debt, and we must do it with the

highest or with the one you have a higher interest rate.
It is not a matter of neglecting others, but of selecting one

that is a priority, so that with any additional income we
receive, we increase the payments of the debts we have
chosen, to pay them off as soon as possible.
Do not forget the lines that were made of savings,

because having a small mattress serves to be able to
alleviate emergencies or to cover scheduled expenses, as
we put in the example the cost of annual school tuition or
possible expenditures in a celebration of birthday or
another kind of time that should enjoy as a family.
Do not forget the lines that were made of savings,

because having a small financial mattress serves to be
able to alleviate emergencies or to cover scheduled
expenses.
By example the expense of annual school tuition or

possible fees in a celebration of a birthday or another kind
of time that should enjoy as a family.
46
Above all, we must resist the temptation to use credit to

buy things that we think we need, really credit abuse is
like a vice, it is not easy to free yourself from your haunt,
because it is money that we can dispose of immediately
and efficiently, but Let's remember it's not our money, it's
debt!
Debt that we will have to pay with the respective interest

that grows higher as the amount of our credit used
increases.
Going to a budget is very difficult, but it is not impossible,

if you do it with discipline for a couple of months you will
have taken an essential step in your economic recovery
and see how you will be able to control your spending
more naturally and without it being a sacrifice for you and
his family.
It's hard to try not to get on the plane of a self-help text

because we're trying to convince you of something you
probably don't believe in or aren't so willing to suffer, but
understand it at once, if you manage to control your
budget, the battle will have almost won.
In the annexes of this guide, you will find elements of the

famous Japanese technique of the Kakeibo to save.
47
STEP 9. ADJUST THE BUDGET,
CONTROL ITS EXECUTION, AND SAVE.
Suppose you managed to consolidate your control over

the budget and have already started to pay off some of
the debts that were pressing for you, you will suddenly
find that at the end of the month you will have no zero
balance, if you receive any extra income, apply it to the
most pressing debt.
As you resolve your monetary obligations, you will leave

with a remnant of your projection of payments for the
debt you have just written off, but the wisest thing, in this
case, is to prioritize the next most critical debt.
It is crucial to pay off the most critical debt and the best
way to do that is to anticipate some payment if it is a bank-
type debt in installments, in this way we will liquidate
debts and leave our portfolio more solvent with what we
can achieve the state of financial tranquility that we
should never have left.
It is very advantageous to be able to pay a more significant

amount than you have as a fee, because all the extra
money goes to capital, the same happens if the payment
does so halfway the date of when it is your turn, that is if
you pay an extra between fee and fee, interest
48
significantly reduced.
That's why when we've managed to pay off some of our

debts, we need to adjust the budget to distribute it into
the most urgent expenses and increase the repayment
amounts.
It is not a bad thing for us to guide this amount in some

repressed taste, but our goal is to be debt-free as soon as
possible and in the average of what we can speed up this
process so that the shorter term in the projected ones we
can rest from the overwhelming burden of debts.
The budget is a critical thing, and we must not deviate

from it, the sooner we can settle our obligations, it is
better because at some point it will be necessary to have
an emergency fund that at the moment we cannot create,
so all our efforts should focus on achieving financial
solvency in the shortest possible timeframe.
Following our budget example, when we schedule it, we

consider the income and egress that we already have
committed, but if for example, we sell cosmetics on our
own, we may have a small utility that at the end of the
month we should consider using it to help us get out of
the way.
In the example we are developing, suppose that almost

$40 of additional profit has generated, which we will use
to pay one of the most pressing debts, which is the credit.
49
February
Budget 2020
1 Fortnight 2 Fortnight
Beginning balance 77.00 17.00
Net Revenues
My Wages 1,025.00 1,126.00
Spouse's salary 945.00 945.00
Cosmetics sales 75.00 25.00
Total net Revenues 2,045.00 2,096.00
Savings
Purchase of school supplies 75.00 75.00
Celebrations 50.00 50.00
Total Savings 125.00 125.00
Expenses
Food, groceries, supermarket 375.00 375.00
School fees 150.00 200.00
Basic services: water, electricity, gas 300.00 -
Others: Telephone, Internet, Cable TV - 150.00
Security - 50.00
Vehicle Quota 250.00 250.00
Credit Cards 190.00 200.00
Home Mortgage Payment 400.00 400.00
Vehicle maintenance costs 75.00 200.00
Gasoline and lubricants 90.00 90.00
Clothing and accessories 75.00 50.00
Weekend outings 75.00 50.00
Savings on annual registrations 75.00 75.00
Savings for celebrations 50.00
Total Expenses 2,105.00 2,090.00
Balance 17.00 23.00
In this example in the first fortnight we had a surplus of

fifty-two dollars thanks to the additional income, the
product of the sale of cosmetics, that remnant we paid to
the credit cards and thanks to the second fortnight we
received seven dollars of cosmetics, more could be paid
50
to the credit card (US$125.00) than had been budgeted.
March
Budget 2020
1 Fortnight 2 Fortnight
Beginning balance 23.00 13.00
Net Revenues
My Wages 1,025.00 1,126.00
Spouse's salary 945.00 945.00
Cosmetics sales - 100.00
Total net Revenues 1,970.00 2,171.00
Savings
Purchase of school supplies 75.00 75.00
Celebrations 50.00 50.00
Total Savings 125.00 125.00
Expenses
Food, groceries, supermarket 375.00 375.00
School fees 150.00 200.00
Basic services: water, electricity, gas 300.00 -
Others: Telephone, Internet, Cable TV - 150.00
Security - 50.00
Vehicle Quota 250.00 250.00
Credit Cards 190.00 200.00
Home Mortgage Payment 400.00 400.00
Vehicle maintenance costs 75.00 200.00
Gasoline and lubricants 90.00 90.00
Clothing and accessories 25.00 50.00
Weekend outings - 50.00
Savings on annual registrations 75.00 75.00
Savings for celebrations 50.00
Total Expenses 1,980.00 2,090.00
Balance 13.00 94.00
We should highlight at this point two important aspects,
first, in just two months we have managed to increase the
payment of credit cards eighty dollars and second, we
have accumulated savings of two hundred and twenty
51
dollars.
In the third month, we see that we had no extra income,

so we return to reset the budgeted and keep the expenses
under control.
Any surplus goes to the debt, and the savings increased to

such an extent that by the end of the year we will have
the right amount.
That saving, we will use it in the planned, pay the school

fees, in a good celebration or in a large payment at the
end of the year that settles one of the debts or leaves it at
bearable levels. We know that this hypothetical scenario
is closer to magical realism than to the raw everyday
truth, but it is feasible that you can save.
Five fortnightly dollars is made one hundred and twenty

in a year, you already cover a relatively large expense, if
you fit a budget the likelihood of having surpluses at the
end of the month is high, and you must reinvest them,
first to pay your debts and then to save them.
Save, that's the leading tip of this chapter, if you don't

have the discipline to save the money and not touch it,
52
then put it in the bank, don't be ashamed to arrive with a

five-dollar deposit, feel embarrassed and sorry for saving
nothing.
Tracking is essential, do not stop consulting your budget

before making any expenses, make sure to cover your
debts and primary needs, you can save by cutting some
costs in food or food even, taking care and controlling
what you buy and Used.
Save on your home by spending less water, turning off the

lights you don't use, disconnecting appliances that aren't
doing anything useful, not wasting anything, no food, no
groceries.
Bath with little water, wash the car, just a rag and a small
container with water, do not occupy the hose for that,
there are so many ways to save at home, worry about
putting them into practice.
Sell items you don't use that may be necessary for

someone else, get rid of things that are no longer part of
your life, only take up space, and represent dead money.
Valuable tips for saving gas can found in the annexes in

this guide.
With these ideas, we go to the next chapter.
53
STEP 10. LOOK FOR OTHER SOURCES

OF INCOME
We must get used to measuring penny expenses and if we
can look for other sources of income without falling into
unnecessary risks.
Seeking other sources of income does not mean risking

illegal acts of dubious respectability, nor does it
jeopardize our job stability by doing business in our
workplace as there are companies that expressly prohibit
sales personal, inside the office.
There are so many ways to generate extra revenue that

you'll regret not having started earlier.
In some cases, it is seen with surprise how all the

members begin to collaborate and even reveal flashes of
"entrepreneurship" either in ourselves or in our children,
qualities that we never saw before for the comfort and
relative safety that offers us a regular and continuous
salary.
I know a friend who is an excellent computer programmer

analyst, but who for reasons of national economic crisis,
lost his job and was unemployed.
From the moment he was fired, he used some of his

severance to set up a small shop in his home, also joined
Uber and provided transportation services.
His wife is a psychologist by profession and works in a

government care center but took advantage of the daily
54
early leave of work and put in a "to-do club" with student

reinforcement among the neighbors of his colony.
One of his daughters who studies business administration

has a natural talent for making jewelry garments and was
serious about promoting and selling them to the point
that he had to hire assistants to manufacture them and
one of those helpers was his younger brother.
WARNING - IT'S NOT EASY TO MAKE MONEY
As we anticipate at the beginning of this guide, this book

won't make you the rich, but it will help you with your
financial problems, so when we tell you to look for
alternative income, it's our duty to warn you to be careful
because you can fall into the trap of "Make money easy
with us."
It is true. The Internet is a source of opportunity, as well

that sales are a lucrative way to work, and good
commissions earned.
It is true too that there are several business models with

products and services that generate micro-revenue that,
when multiplied, can be very profitable, that's what they
call "passive income" is to say sources of income that once
started, generate a small profit.
It's possible to make money the ways we've exposed, but

there's a big trap those business models also have wasted
time and money on a lot of people.
55
You will encounter many great opportunities that promise

to make you rich in a short time and with minimal effort,
but IT IS LIE.
Sell our food products and get rich, earn money surfing
the internet, build a strong network with your friends and
get rich at their expense, internet scams, pyramid
businesses, food supplement sales and a whole universe
of opportunities that take advantage of their aspirations
and needs.
Be very careful with easy money as it does not exist, even

if it is illicit, it is not easy, in this case, it is worse because
besides difficult it is dangerous, earning extra money is
possible, but there is no magic formula for it to do it
effortlessly.
So, what can we do?
As I told you about my friend, he used his car as a taxi and

made money with him while looking for a more formal
job.
Take advantage of artistic skills, crafting objects that you

can put up for sale.
If you have some specialized knowledge of something,

you can offer private classes, whether it is mathematics,
drawing, electronics, music, graphic design, etc.
Make bread and pastries. You will always find people who
want to buy it among friends, acquaintances, and
neighbors.
56
Put in a weekend fast food business if you're working or

breakfast to get free for the rest of the day, food is a very
noble source of income, leaves good profitability, but you
should be strictly careful with health and environmental
permits , don't get into something clandestine that's only
going to cause you problems either.
You can sell food, cosmetic or kitchen items only if you

have a sales vocation and if you are a fan of order and
control, as these kinds of opportunities ask you for a
"minimum" investment and have you sell and manage
your profit.
But if you are a messy person, you will end up eating your
investment, and if you do not have a true vocation for
sales, you will leave with a dead product that you will end
up using yourself or giving it to your family or friends.
Years by years of working as employees have killed us the

entrepreneurial spirit, but in the face of need, it is
essential that you wake you up and frankly you will be
surprised what you are capable.
If you like writing, start writing and publishing a book, use

the self-publishing services of online companies like
Amazon Kindle, Kobo, Google Books, Babuk and others
that allow you to print without being a recognized writer
and without investing more than your Time.
These sites let you publish in electronic format and print

on demand, i.e., if someone buys a physical book, you can
order it, the company prints it and sends it with this save
57
stakes costs that can fall asleep the sleep of the righteous
for years and years.
The profit margin is tiny, you will be surprised to learn that

the real winners are them, but some income will report
you and consider that it is income that you did not have.
Likewise, you can publish courses online, and there are

many sites online that allow you to do so, enroll as an
instructor, and generate content that you can win money.
Some of these sites are Udemy, edX, FutureLearn,

ClassGap, Udacity. In this case, it requires substantial
knowledge in the area of the course and a little expertise
in the creation of audiovisual formats.
Another way to make money is by becoming Youtuber,

i.e., owner and actor of a Channel of the Youtube video
platform.
But this if it requires more than extra time, it involves a

combination of knowledge in a subject, certain physical
appeal, strong theatrical skills, and an audiovisual support
team.
It's not easy to get to have millions of video visionaries,

just as it's not easy to become a successful writer, neither
is the purpose of this book.
In my case, I decided to work for the book, and for proof,

it is that I managed to publish it.
58
I will not become a millionaire selling it, and it is not even

a constant source of money, but, also if it's not so much,
it is money that I do not have and is always useful.
The truth is that it will fill us with satisfaction to know that

some of the tips we're providing it to help him get out of
a bad situation.
There are other ways to earn extra money, none is

magical, but it's feasible to do it.
It's you who will find out the one that best suits your
needs and abilities. You might find that you've been
wasting your time, working as a full-time employee and
ends up dedicating himself to a business of his own that
will be more profitable and rewarding.
59
CONCLUSION
As you can see now that we have reached this point, the
guide consists of ten reasonably simple steps to achieve
economic stability and emerge from a state of a domestic
financial crisis.
All are very important and must solve them thoroughly so

that it can have satisfactory results, and there is no magic
formula to achieve them, the success of this based on the
following qualities:
• Right attitude
• Discipline
• Constancy
• Commitment
The first few months will be very hard, but if you can stay
in the course you have plotted, after a short time, you will
see results that will surprise you.
If you've already achieved stability in your finances, don't

stop, keep economizing and generate extra income,
household savings have almost disappeared from our
homes, and it's a latent force that will give us security and
peace of mind.
A suitable parameter to know how much money to save is

to try to have at least enough savings to cover your
expenses for twelve months, i.e., you could spend an
unemployed year maintaining the same standard of living.
60
Logically, if that were to happen, you would immediately

adjust your budget, cut expenses even further, eliminate
what would not help you survive, and stretch those
savings so that it can last two years because you already
have the elements and discipline to do so.
That's why saving is significant don't forget and don't stop,

if you discover having a vocation for a business, there you
have an excellent opportunity to invest your savings.
They say money calls money, and it's true, but to have it
you must earn it, manage it well, and save it.
61
ANNEXES
62
UNDERSTANDING HOW BANK CREDIT

WORKS. AND HOW TO PAY LESS.
One thing they don't explain to anyone about loans is that

the interest rate they apply is compounding declining on
balance.
It means that, for example, to a loan we make for any

amount ($5,000.00) to be paid in a period (10 years) at a
rate (10 years) interest (12%), is calculated a monthly fee
covering capital (amount owed) plus interest.
In other words, the monthly fee is a portion that is paid or

subtracted from the capital (debt balance) and another
that is payment of interest.
Here comes the interesting thing, of the monthly fee, the

parts that apply to capital and interest differ in amount
and are changing in each payment, in the first installment
we sometimes pay more than ninety percent in interest
and the rest of the percentage apply to capital.
Every month that passes, we pay the same fee, but the
distribution of what applies to capital increases a little and
the interest decreases.
We can understand better by a simple example.
We make a loan of $5,000 at 16% annual payable in ten

years (12 installments per year x 10 years = 120
installments).
63
The loan is as follows.
Amount - $5,000.00
Monthly Fee - $83.76
Monthly Interest - 16 %
Loan term: 10 years, 120 installments
To study it let's use a template of the many that a great

electronic spreadsheet offers for free and analyze the
previous credit by putting the general data to calculate
the fee and the payments to be made.
By the moment, all so good. Your loan will be paid out in

ten years with a fee, let's say very small, but ATTENTION!
If you look at the box that says Total Interest, we see that
only in interest, we will pay more than we have lent.
I mean, if we lend five thousand dollars with these

conditions, we will pay in the end Ten thousand fifty with
seventy-nine cents!
That's why banks make so much money!
64
It's nothing illegal, that's how things work, and it's not
about us being innocent victims, this is so transparent that
anyone can see it and understand it if they take the
trouble.
Then, are we doomed to pay double for a loan?
The answer is a blunt NO!
You must find a way for interest not to be so many, one is

to play with odds, let's look at the rest of the spreadsheet
in detail.
If we look closely, in the first installment, of the $83.76 we

pay, we only pay the debt (Capital) $17.09, while the rest,
$66.67 is interest, the following month is almost the same
and so the first few months are paid more bank interest
than capital.
But at the end of the loan, back for the ninth year, we see
that for example in the 118 installments, the capital paid
is $81.57, while the interest is only $3.26 until in the last
installment, we pay only $1.10 in interest.
65
Every month since the credit begins, we pay eighty-three

dollars with seventy-six cents, but what we pay of capital
and interest varies in each installment, with higher
interest at the beginning of payments and almost
negligible at the end of the ten years.
Will there be a way to pay less?
Of course!
Let's take advantage of the extra box that says, "Extra

Payment" and put an additional payment of fifty dollars in
the first month.
Surprise!
With an extra credit of fifty dollars on the first installment,

we saved two months of payment and the loan is settled
two months early, meaning we saved a considerable
amount of interest, because instead of paying $10,050.79
for everything, we would be paying $9,861.83, meaning
we'll avoid $188.80 of interest, just by paying $50.00
extra, on the first installment.
66
What if we managed to maintain an additional $25

payment each month the loan lasts?
Let's go back to our spreadsheet and apply an extra fixed

amount of $25, this time, our surprise will be even more
significant.
In this case, the time has been reduced to seventy-two

months, i.e., to six years, we will finish repaying the loan
four years before, just by paying an extra twenty-five
dollars in each installment.
The total interest to be paid will be $2,794.80 if we add up

all the fees that have raised to 108.76 per month for the
additional $25 we have to be paying 7,794.80, which
means 2,255.99 less than in the original scenario we were
going in to pay $10,050.79 over ten years.
67
In the end, although we are paying a little more each

month, we see that doing it this way means considerable
savings.
One way to speed up this process would be to pay the

double fee or make much higher payments in the first few
months of the loan, which is when interest is more
elevated.
This way we would be saving significant amounts of

interest and repayment time, although after we let's pay
the standard fee and if you can with a slight increase to
settle it in less time and pay less interest.
Another way to pay less interest is to get a lower credit

rate, but you'll need to negotiate this with the bank.
Many times, banks put clauses that the credit rate is

subject to variations in the national economy.
Try to negotiate a fixed rate for the duration of the loan.
Some non-bank credit unions lend at lower rates than

banks, so take the time to research and make calculations
before taking out a loan.
68
Another way to be charged less interest is to pay it in less

time, that is, ask for a shorter term.
A ten-year loan is not the same as a five-year loan; even if

the fees are higher, you'll pay less interest at the end of
the loan period.
However, you must calculate the amounts well so that

you can pay the installments, make accounts with
technical assistance.
You must know how credits work, and once you have the
knowledge, you can take advantage of them without
having to pay extra money.
69
KAKEIBO, THE JAPANESE MONEY-SAVING

TECHNIQUE.
We all know that the Japanese have a fantastic discipline,

and this makes them able to follow any method to the
letter, so Japan is the cradle of many ways of quality,
savings, education, etc.
One such method is the Kakeibo that has now become

very fashionable in these times of widespread economic
crisis; its creator was Hani Motoko, a remarkable
Japanese woman born in 1873 and decreased in 1957,
who is considered the first journalist of the Eastern
country.
After a marriage failure, she moved to Tokyo, where she

found work as a maid in the service of a doctor. While in
Tokyo, as she had higher education, she managed to join
the Hochi Shinbun newspaper in 1897, as an editor and
later promoted to reporter. In 1901, she married a co-
worker, Hani Yoshikazu, with whom she founded a
magazine called "Fujin no tomo" (Friend of Women) in
1908.
According to some sources, in 1904 she published what

she called the Kakeibo method, as the Japanese art of
saving money; literally means "book of household
finance," because in fact he designed a finance booklet
that is still used and sold in print, digital form, there are
Apps and systems that implement it.
70
Hani's method analyzed household finances in a very

original, easy to understand, and entertaining way. It
stated that expenses must be under control, and savings
must be generated to have financial security.
It is an entirely manual method, based on annotations

made with paper and pencil, no spreadsheets, computers
or smartphones.
As part of the method, you should write down at the

beginning of each month the income and fixed expenses
such as the mortgage or rent, the light, the community,
etc. In this way, we can know when money is available to
us for the rest of the expenses we have during the month.
The Kakeibo Method for controlling household finances is

quite simple and consists of elements that remind us of
the Kaizen method of continuous improvement.
Plan - Do - Evaluate and Act
In this case, she divides it into the following steps: Register

- Classified - Control - Question
1. REGISTER: As a first step, you must record the income

and expenses of 1 month in your home, write everything
down, but do so by following the second step:
2. CLASS: Separate your expenses into these categories:

Survival - Culture - Optional - Extra, these are the pillars of
costs
Expense Pillars
a) Survival
71
Here are all the costs that are necessary, such as food,
essential services, medicines, transportation.
b) Culture
Culture and distraction are vital, but it can be cuttable and

here are noted expenses in cultural activities: Go to the
cinema, theater, dance, books, museums, and concerts.
c) Optional
In the optional column, you will have to write down those

things that you can live without, but that you usually buy,
like go to restaurants, buy clothes, buy magazines or
gadgets, go out drinking.
d) Extras
In this section, you write down the unforeseen expenses

that you can not easily avoid, such as a birthday present,
the repair of something that was damaged, maintenance
of the vehicle, costs that you did not have planned but
that are not essential.
This step is about planning expenses to get an idea of

what we're going to spend and take it to numbers.
3. CONTROL: Then, you should set a savings goal and

promise that you will reach it.
That sounds a little, uh, unlikely.
But if you put your expenses well into some categories,

it's easier to know how much you can save.
72
And secondly and once you have passed the period we

analyzed (a month, for example), verify if it could to be
met.
If the goal could not achieve, you should investigate the

reasons for the deviation.
This control is to make us aware of how our finances work

and to take control of them.
It is recommended that, at the beginning of the month,

we have an allocated budget for each of the expected
expenditures, but also a margin for contingencies and, of
course, a figure intended for savings: "and logically, as we
see the months go by, we can learn from the experience
of the previous one," he says.
Every time we make a purchase or pay something should

note in the day and section that corresponds if it's food,
leisure, clothing, etc.
What matters in this system is to be constant and

meticulous.
You can't leave anything not writing down, no matter how

small the expense, or it won't do any good.
And it is that only by pointing out in detail what we invest

our money in is when those little extra expenses that we
can do without coming to light and that are the ones that
do not help us save.
4. QUESTION: At the end of each week or the end of each

month, you will be able to easily make the sum of all your
73
expenses by the categories or pillars that you have

defined.
You will be able to visualize if you have been able to reach

your monthly savings goal and at this point, you will be
able to correct your budget for the following month, for
this it is advisable to ask you the following questions.
How much money do I have saving?
How much money would you like to save?
How much money am I spending?
How can I improve that?
Once you've answered these questions honestly, you'll

have a much clearer picture of the finances within your
home.
Then you'll be able to come up with a spending and

savings plan that's near to reality.
You can set achievable savings goals.
Try to be true to Kakeibo's philosophy and work it with

paper and pencil. No mobile phone apps, no Excel sheets:
that will make the process more tangible and less likely to
disperse in the attempt.
Repeat the entire cycle month by month until you have

the philosophy planted well.
74
TEN TIPS FOR SHOPPING AT THE

SUPERMARKET
Going to the supermarket can be an opportunity to save

yourself money or a stumble to overspend, depending on
your shopping habits.
To make a practical purchase, we give you the following

tips:
1. Prepare a list.
The best way to get ready to go to the supermarket is to

have a list of all the items you need to buy.
So, you're clear, and you know what you need precisely,
you avoid buying items impulsively, and you won't forget
any purchases you required.
As a first step in preparing a useful shopping list in the

supermarket do the following:
Check your pantries, food, cleaning supplies, groceries,

and various pantries to see what staples are running out.
Could include flour, sugar, canned products, rice, spices,
tea and coffee, soap, detergents, toothpaste.
Check the refrigerator to see if you need fruits,

vegetables, juices or other beverages, and this is very
important as the fridge sometimes fills with things that
don't work or in the shopping you take greens that you
already have.
75
Plan the family menu for the next week or the next two
weeks. Look at the recipes you're going to make and make
sure you have all the necessary ingredients.
Check storage cabinets or drawers for toilet paper or

disposable tissues, soaps, dish detergents, or other
household products.
2. Review the published offers.
Sometimes they show up in the papers to see if there's

any that can help you. If you're looking to save some
money at the grocery store, check out the brochures in
the store or search the internet for items on offer for the
week.
If you find coupons for any item on your list, cut them out
or write down the brand on offer.
If there are some supermarkets nearby, compare the

prices of the items listed in the brochures and make lists
of which things you plan to buy in each store to get the
best price.
To avoid spending extra money, only use coupons and

brochures for items you were already buying.
3. Remove products from the list you don't need
yes, we know you've put in a six-pack of beers because,

who knows, maybe the weekend will have a big football
game, and you need some equipment.
See if all you have on the list is what you need to spend
the week or fortnight.
76
Are you going to eat all these vegetables or are you going
to get spoiled?
Are you going to get caught and shrimp?
Why did you put detergent if you have a full container?
Try to buy the right amount, so you don't have to throw

away anything you buy. Carrying food is very bad, but
throwing money is worse for your economy.
4. Eat something before you go shopping
When our mother made us eat something before, we

went to the supermarket, and she didn't do it to annoy us;
she did it because she knew with hungry, our inner
monster comes out and wants to devour everything
around us.
It is true, without a doubt, because it has shown that going

to the supermarket hungry is not the right choice.
Always try to eat before you go for your purchase, and

you'll see how temptations are less hungry.
5.No grab a cart to do the shopping
If you don't plan to buy large quantities of food or heavy

drinks, forget the shopping cart and take a handbasket or
better still carry a cloth bag.
Why? Viewing the empty shopping cart will unconsciously

make you buy more to fill it. Instead, if you take a smaller
container, you'll see it fill up right away and feel like
you've bought more.
77
6. Check the offers in the aisles
In all the aisles there are offers of some products, take the
time to review the prices of the products that you have on
the list and if they are on offer, buy them, even if they are
not of the brand you usually buy.
7. Check the different levels of the shelves
Surely you did not know that as a rule, the products that
located at the level of your eyes are more expensive than
the products that are on the lower levels of the shelf.
You can take the test to verify and before you buy, make
sure you've reviewed all the price options. The
supermarket's marketing strategy may be leading you to
buy the most expensive products.
8. Always look at the due date
Checking the expiration date of the products is essential

to buy with your head and save money.
Try to buy food that you can eat before the expiration
date on the package. For example, if you live alone and
drink one yogurt a week, don't buy a liter that expires in
three days.
9.No take the kids.
We know that it is delicious and rewarding to go with

them to do the shopping because the children are the best
company.
78
The problem is they usually place impulsive orders, in

toys, treats, or even some things that they put in the
wheelbarrow by television indoctrination.
They are not to blame; the publicity makes them think

that things "should be put" in the wheelbarrow.
That's why is not convenient to take them to the

supermarket, but, if we cannot avoid it and we must go
with our children or nephews to the supermarket, we
must do it after a tasty snack.
10. Choose the store's products and services.
Many supermarkets are making up their brands and

products, these are often considerably cheaper and
usually, at least as good as those of a better-known brand.
Also, get a customer card from the store, with which you
will receive automatic discounts of those offered in the
supermarket newspaper.
With all these tips in mind, we assure you that you will
save a lot by doing your shopping at the supermarket.
79
HOW TO SAVE GASOLINE
A good friend named José Marcía, wrote several years ago

a series of useful tips to save gasoline with our vehicles.
These tips are as valid today as they were when he wrote

considering the high fuel prices and the almost null
likelihood of these prices going down them, which is why
I share them with my friend's authorization.
The best way to save gas is not to consume it, walk or

transfer by bus.
If you need a means of transportation, get a bike if you

have an excellent physical condition or a bike if you have
good reflexes.
But if you must use a car to get around, you need to follow
these tips:
1. Give your vehicle proper maintenance:

a. Try to keep the tires inflated with the same amount of
air (30 to 40 pounds).
b. Swing and line up your tires at least once a year.
c. When you accelerate, do it slowly and steadily.
d. Likewise, when braking, does it slowly and measured.
e. Since we are talking about brakes, these should,

therefore, be in good condition check the front pads and
rear shoes at least once a year.
80
f. When you buy a new battery, take it to be checked at

least every two months to the place where you purchased
it, if you lack water, they throw it out as part of the
warranty.
G. The battery will change it when the warranty expires,

do not wait for it to start to fail, but you run the risk of
becoming stranded anywhere, and it may become more
expensive.
h. Before you get hot the car if you need it.
i. If you have air conditioning, do not use it, as this raises

the consumption of gasoline by up to 10%.
2. When driving follows the following tips:

a. If you are leaving your children at school to save the
minibus, get up early to avoid congestion.
b. Avoid unhealthy streets as you must do maneuvers to

dodge the craters that form, these maneuvers cause
sharp braking and acceleration.
c. Always look for the best route to reach your destination

with streets in good condition and without much traffic.
d. When buying gasoline fill the tank and if possible, at

night or before dawn as it is very volatile and remains
dilated during the day.
e. When driving, avoid doing so during the hottest hours.
81
f. To find out how much gas your vehicle consumes, write

down the mileage you have when your fill-up the fuel
tank, and do it again the next time your fill-up the tank.
Calculate the difference between the two notes and the

result divided by the number of gallons you just put in the
tank; this ratio will tell you the miles per gallon your car
makes.
This way, you can figure out how many days the gas will
last and how much you spend per month, as well as
whether you're being ripped off.
Because of the say that at some gas stations, the gas

pumps are altered and serve you less fuel than you pay.
g. Schedule your route well before you leave so that you

don't get unnecessary. At the time my friend wrote the
article there were no Google maps or Waze which are
great tools to optimize routes, I recommend that, if you
can, install them on your phone and use them widely at
peak times.
h. Buy the gas at the station where it sells cheaper and

have it on your route.
i. Allocate an amount for gasoline in the month and try

not to overdo it as it will affect your budget for other
essential things as well.
j. On highway cruising do not drive more than 60 mph, if

you do instead of saving gas, you will spend more.
k. When going down, set to neutral speed.
82
l. Avoid the traffic locks, and if it left in the middle of a

better one turns off the car until it finished.
3. Tips with your friends.

a. If you have friends, who go their same route and enter
and depart at the same time of work as you, share the
vehicle with them (if they fit) if you don't even save it
yourself.
b. If you can give a ride to people who go to your way

there, if they live far from their route better provide them
with the money for the bus, it will come out cheaper.
c. Stop being a good-natured caregiving a ride to half the

world that doesn't live on its route
4. Working as a team with the other drivers.

a. Avoid turning on yellow lines, this saves you gas
because you avoid an unnecessary lap, but doing so will
trap those who come behind you (they if you are going to
spend more gasoline), in addition to the high possibility of
getting a fine and what and mention her mother
b. Give way when asked to slow down and allowing the

other driver to the overpass, you will lose more gas
speeding and braking to prevent your neighbor from
getting into line.
c. If you are at a traffic light and you cannot pass even if

the light is green because there is a traffic jam, do not
obstruct the road.
83
It's better to wait until there's space ahead even if you

lose your turn, because when the traffic light changes you
could be responsible for a more considerable traffic jam.
d. If you drink liquor do not drive better stay sleeping in

the car or someone's house, it may be more expensive,
since the ease of being stopped by the police to come in
Zigzag or that you pass carrying a post or someone else's
car is quite high.
e. If it rains better, stop or wait for the rain to pass, the

locks and accidents increase when the street is wet, and
visibility reduced with the drops falling on the windshield.
84

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HOW TO GET OUT OF A

All rights reserved.

For my wife Evelyn, who has given me her unconditional

To my creditors, for motivating me to find a way to control

In this world, ruled by market, excess in the supply of

The minimum payment barely touches the capital of the

you may already know and that don't require you to

HOW DO WE GET INTO A HOUSEHOLD

· We earn little money and mismanage our money

You don't have to be an economic guru to know that the

We may have several credit cards and are at the maximum

can trigger disaster.

In these times, it believes that success in life directly

Sometimes we want to appear to have an economic level

We have likely lost money on an investment that did not

It may be that we are not so indebted but that our

Even if we have good incomes, maintaining a high level of

In a period of crisis, whether we lose our jobs, suffer a lack

Many situations that are sometimes out of our reach can

We can even be very orderly with our money and have a

This unusual situation can lead to a financial collapse in

For many of us living in countries with little public

The causes of an economic problem are many, and the

To do so, we must continue reading and comply with the

We're not going to start with bits of advice like "Repeat

change your life."

As we said, this isn't a magic formulations manual or a

We have divided the process into ten practical and

Before we start a process of economic conversion in our

That is why we must take the first step, which is to accept

This is the most important step because as if it was a vice,

No matter if there was a time when we made a lot of

But many times we find it difficult to admit that we have

We deeply regret having to tell you this: There are nothing

If we have not attended the problems promptly, they tend

So, before we try to execute any activity, the first and

Accepting the mistake is one of the most challenging and

It is not a question of self-flaking and falling into a spiral

We should not care by the moment, and we will already

Please do not continue reading if you have not assumed

A big mistake that made in times of financial crisis is to try

It is a logical attitude; we are ashamed that others know

We have some ideas as these because it has implanted

A lot of people believe that to ensure success, you must

On the other hand, we all fervently hope that our loved

This situation almost invariably leads us to lie, to hide the

present to others an aura of happiness and fulfillment

To think like this is a mistake because no matter how hard

The problem must discuss with the people closest to us,

The problem must discuss with the people closest to us,

This talk must do bluntly, and it is an essential step to be

We will have all your support and your unconditional help,

They should have a clear picture of the situation and the

actions you have planned to take to resolve the financial

It can become a harrowing moment, to such an extent

It is hard, possibly the most complicated and difficult

Talk to the person closest to you first, do it, frankly,

If you need to explain figures widely, amounts and