We all aspire to wealth and financial independence. But, unfortunately, not all turns out to have all the things that we would like. And the matter here is not low standard of living or income and irrational approach to the management of personal finances. Ten of our secrets will help you to properly distribute the family budget, and very soon you will notice that the accumulation of growing and debt is getting smaller.
Perhaps you are skeptical thoughts like "What could be my minimum salary savings" or "where to get money for savings when my salary." But if you come to a rational planning and distribution of personal finance are sure to find ways to improve their financial situation.
10, a personal finance management secrets
1. Always know how much money you
Money loves account, moreover, consider as part of their embedded in financial instruments (investments, stocks, bonds or deposits).
2. The more sources of income, the better
In this case we are not talking about the level of wages or other income, and of their diversity. This approach leads to the fact that you yourself will feel more confident and more stable. Let's say you are fired from their jobs or new project "failed" and you have suffered losses. And if it was the only way to get money, that is the risk of being on the edge of the financial abyss. Thus, it is better to have multiple funding sources: the basic salary, part of the rental income and investment and other.
3. Spend less than you earn
The law of increasing demand suggests that the more we get, the more we spend. As in everything, there is an important measure: no matter how much you may earn, spend at least 5 - 10% less than the funds received. This will gradually build savings and avoid financial "abyss."
4. If revenues have fallen sharply - cut and expenses in the same proportion
Council "tighten the belt" is very relevant during the financial crisis, because it will allow you to adverse events (loss of earnings or substantial core loss) to stay afloat and not to spend all their savings.
5. Consumer loans - a financial evil
So, the loan has a right to life only in the case of a justified increase in working capital for the business. Discard the large purchases (cars or home appliances) in installments or credit, as it will only worsen your financial situation. Such purchase is better to do at the expense of savings. For example, there 6 Proven Ways to quickly accumulate on the machine.
6. Free personal finance should work
If you have accumulated a certain amount, then the money should work for you, and can be a source of passive income. Even a small percentage of bank deposits will bring income and save your assets from inflation. Only carefully choose a financial institution, who have entrusted their money. Do not trust those who offer too favorable terms or exorbitant interest rates.
7. Strive to increase the sources of passive income
To become a wealthy person, should increase their capital on a regular basis and do so, that he would bring passive income, because actively work two or three jobs all the time you can not.
8. Critically evaluate financial risks
If you want to invest their savings in a project, buy property or make a deposit in the bank, try to adequately assess their risks. If this is difficult for you, do not be afraid to ask for an independent financial adviser.
9. Be careful with my old age
It just so happened that the state pension to live in our country is difficult. Therefore it is necessary to take care about your future. For example, you can create sources of passive income or to create retirement savings.
10. Financial Literacy Study
Whoever you were not working, vendor, doctor or baker, the basics of financial literacy, you need to know. This will allow you to properly distribute personal finances and gradually increase them. And this is a direct path to independence and prosperity.
You will also be interested to know, how to keep the money that they became more.
