If you do not know how to properly manage your money, then even a very high salary will not save you. To improve your economic situation, just follow our daily financial tips.
10. Live within your means
This is perhaps the most important rule. Do not allow yourself to spend money that you did not earn. It often happens that on the day of salary a person feels like a millionaire. He buys what he wants without thinking if he has enough remaining money to cover his monthly expenses. Do not chase wealthy friends or acquaintances. If what they buy is luxury for you, do not try to match it. Spend money so that you don’t have to borrow at the end of the month. Separate needs from desires. By the way, many purchases are made impulsively. Having denied yourself today, tomorrow you may thank yourself for your restraint.
9. Make a habit of keeping records of income and expenses.
But in order not to spend more than allowed, you need to know how much money you need every month. Make yourself a good habit: keep track of income and expenses. There are many options for doing home bookkeeping; you can use computer programs, applications on a smartphone or, as usual, write data to a notebook. Usually people are enthusiastically taken to account for income and expenses, but then it simply bothers them. It is important to bring the matter to an end. This does not mean that now until the end of your life you have to write down every penny. Two or three months is enough to roughly understand where and how much is required. Also, this method will help you identify excess spending.
8. Get rid of credit cards, consumer loans and other debts
Now at every step people are offered to take a loan. To do this, it is not even necessary to go to the bank. You can fill out an application on the Internet, the card will be delivered to your home. Have you ever wondered why financial institutions need such difficulties? It's simple, they earn money at a percentage. Using loans, you enrich banks, thereby worsening your financial situation. It’s better not to take loans at all. If you can’t afford to buy a thing, then don’t take a loan for it, just don’t buy it. Save, earn, but do not try to get into a debt hole. Particular caution should be exercised in microfinance organizations that promise to help out a small amount up to the salary. With their predatory interest, you still will not pay off.
7. Give up bad financial habits
Everyone has bad financial habits. For someone, this is a cup of coffee in a cafe, for someone, a daily chocolate bar. People spend money to cheer themselves up. But the purchase is no longer a joy, you just got used to doing certain actions every day. A huge hole in your budget is able to break such a bad habit as smoking. Cigarettes are constantly growing in price, but the smoker cannot refuse them and spends impressive amounts every month. However, it harms health. If you smoke, quit right now.
6. Do not lend money
In no case do not lend money. You risk losing them, as well as ruining the relationship. If you have extra money, it is better to invest it in the business or at least put it in the bank at interest. Do not be afraid to offend a person, if your acquaintance is adequate, he will understand you. In general, it’s better not to talk about your financial well-being so that such situations do not arise. Otherwise, colleagues and acquaintances will constantly ask for money from you.
5. Pay yourself first
Also, everyone knows that you must first pay yourself. But few people do that. Determine for yourself the amount that you can save without harming yourself. Typically, economists recommend focusing on the figure of 10% of total income. When you receive a salary, bonus or other cash payment, pay yourself. Set aside 10% or as much as you can. Do not touch this money. If the temptation is too great, open a contribution. It’s better not to keep money at home. It is very important to save money immediately, otherwise after a while there will be nothing to save.
4. Compare prices in different places before you buy something.
You think this is the fate of grandmothers in retirement. Yes, of course, grandmothers like no one else can save when they go to the other end of the city for cheap bread, while paying for the fare. But seriously, go to several stores before making a major purchase. It will take very little time, and you will save money. Now there is an opportunity to see prices on the Internet, there are many free applications in which the most profitable products are presented. But do not repeat the sad experience of grandmothers. No need to travel around the city trying to save money. You will spend much more money to pay for travel or gasoline.
3. Create and acquire additional sources of income
This secret is used by many wealthy people. They, as a rule, are not the only source of income. You can also invest your money. Stocks, bonds, stock markets - there are many options. You can open your own little business. You can rent real estate, a wedding dress, a pram, anything. Of course, do it in such a way as not to have tax problems in the future. Remember that lotteries and other gambling are not an additional source of income. The opportunity to win is too small, but the risk of losing money is huge.
2. Study financial literacy literature
In Russia, little time is devoted to financial literacy. People don’t read books, they just don’t care. Of course, it’s much easier to go with the flow. Take care of your education, make yourself a selection of books on financial literacy and set out to read them. Attend seminars, play economic games. Gradually, you will understand what needs to be done so that financial well-being never leaves your home.
1. Do not expect quick results
Do not hope that you will get rich in a month. This is a very long and painstaking work. You will have to work hard before you achieve the desired result. It is very important not to give up and continue to go towards your goal. Be patient, look for additional sources of income, preferably passive. Do the right thing about money, but don’t go too far in the restrictions, otherwise there is a risk of falling apart. Read about famous millionaires. Has anyone of them got rich in lightning fast? No, they worked just as well, strived for the goal. Follow these tips and you will succeed.