Table of contents:
- 1. Do not confuse salary and personal savings
- 2. Saving is more important than investment
- 3. Avoid credit card debt
- 4. Consider your financial situation
- 5. Open a savings account
- 6. Analyze your monthly expenses
- 7. Make the process of paying bills automatic
- 8. Spend wisely
- 9. Have a backup plan
- 10. Get insurance
- 11. Open a retirement savings account
- 12. Save a little more each year
- 13. Redefine your environment
- 14. Don't be afraid to talk about money
- 15. Remember that happiness is not material
- 16. Read books
- 17. Be aware of your financial situation
- 18. Don't forget about taxes
- 19. Don't stand still
- 20. Set the right goal
2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44
Efforts are required to achieve financial success. We tell you what to do today so as not to worry about your material condition in the future.
1. Do not confuse salary and personal savings
Equity, that is, your real savings, is much more important than the amount you earn. Surprisingly, not all of us understand this simple truth. A high salary does not automatically make you rich, and a low salary does not automatically make you poor.
2. Saving is more important than investment
How much of your salary you save for the future directly affects your financial independence and stability.
3. Avoid credit card debt
Otherwise, your financial well-being will collapse.
4. Consider your financial situation
Try not to get into debt because of unnecessary things if your income does not allow you to pay them off. Live according to your capabilities.
5. Open a savings account
Of course, for your life you will probably have to pay for your studies, car or apartment. A savings account with a safe bank will support you in these payments.
6. Analyze your monthly expenses
This will help you figure out where your money is going. This way you can take control of your costs. The purpose of the analysis is to reduce unnecessary costs. And if, as we advised in the previous paragraphs, you save part of your salary, you will only spend what remains.
7. Make the process of paying bills automatic
This will make your life easier and save not only time, but also money. By paying your utility bills on time, you will not be giving away a large amount next month.
8. Spend wisely
It is not worth spending money on an insanely expensive car or pretentious mansion if such expenses go against your real financial situation.
9. Have a backup plan
For example, set up an account for emergencies. No one can know for sure how life will turn out tomorrow.
10. Get insurance
And again about emergencies and the unpredictability of life. Health insurance or real estate insurance will not be superfluous, keep this in mind.
11. Open a retirement savings account
"Save up for old age" will have to, if you do not want to one day be left without a livelihood.
12. Save a little more each year
Gradually saving a little more from your salary than before, you will not even notice how your savings will grow. Yes, it can be difficult. But don't forget the second rule: invest in the future.
13. Redefine your environment
Our environment has a tremendous impact on us. It is human nature to copy the behavior of other people in order to earn their trust and respect. So, wasteful acquaintances are not going to help you on your path to financial success.
14. Don't be afraid to talk about money
For some reason, in modern society, the topic of money is taboo. If you are concerned about family finances, talk openly with your partner about it. Ask for help. Don't let financial problems ruin your life.
15. Remember that happiness is not material
Pleasant purchases cause a surge in dopamine, the hormone of joy, but only for a short period of time. Things won't make you happier.
16. Read books
An endless number of books on financial planning have already been written. You don't have to read all of them, just find some tips that are helpful to you and try to follow them. It would be great if we were taught the basics of personal finance planning at school or university. Maybe the next generations will be more fortunate in this, but we can only take the initiative into our own hands.
17. Be aware of your financial situation
Before moving in any direction, you need to know where you are at the moment. In practice, this means not wasting money thoughtlessly, but planning your budget in advance.
18. Don't forget about taxes
If necessary, take advantage of the right to tax benefits. Be aware of the possibility of getting a tax deduction for tuition, medical expenses, and so on.
19. Don't stand still
Moving up the career ladder promises an increase in wages, and therefore, your savings. Oddly enough, some find it easier to complain about the lack of money than to try to earn it.
20. Set the right goal
Don't set yourself the goal of saving a certain amount by a certain age. Try not to think about money at all. Eternal thoughts about how to make money make us unhappy. Money should not be a goal, but a way to achieve it.
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