Personal finance and your leverage
From the time of Archimedes knew that if he has a foothold, with a lever can move the world.
And this has been understood the most important financiers in the world. With a small capital or any idea that implemented, could move large fortunes and businesses.
This point of support must be obtained or calculated, if you succeed, your life is maximized.
This is called financial leverage, which is a rational debt coupled with a personal investment, or a productive idea. If the investment is successful, the project cost will be only a small initial investment, as the utilities, will pay both the debt and produce initial and ganancias. Estes is the secret of the big corporations, big business and prosperity. Clearly not as simple as it seems.
There are other types of leverage, such as operating leverage, that instead of managing money, refers to machinery or equipment to produce and sell more. Includes the use of better technology.
For a company that has the potential to produce sales and earnings, leverage makes sense, but in personal finances, not much if you only have a fixed salary.
Reunification of credits, largely
The use of credit cards to finance or personal loans have risks that many do not know how to manage and constantly have to refinance or make reunification of credit.
The reunification of credits is highly recommended as they operate at rates lower than those of other types of credit “fast” and can sort the personal cash flow.
The cost of using credit cards is high. It seems that if you pay low monthly fees “will not feel” spending, but the problem is that taking advantage of these “low fees”, they buy more products than needed and the low amount you can make huge contributions.
If this is coupled with the facility to obtain cash with credit cards, what many do is get another credit card to pay other debts, making a very difficult financial cascade to pay and eventually explode.