Personal finance management is just a seemingly simple task. Very often it becomes problematic. Below we present important tips that will change your perception of money and you will be able to manage it easily.
Create your financial calendar
If you do not trust yourself and are not sure if you remember about all necessary fees, bills, loan installments it is worth using a simple reminder function that is available on every phone. Reminders work exactly the same as those for other events that are important to you – e.g. a loved one’s birthday.
Check your interest rate
What loan should be repaid in the first place? Of course, the one with the highest interest rate. The situation is similar when choosing a savings account. You should choose it with the best interest rate. Why is it worth paying attention to the interest rate? Because you will be able to deal not only with current expenses but also you will be able to save more effectively.
Check your net worth
What is your net worth? This is the difference between your assets and debt. Thanks to this result you will have an insight into the situation you are in. It is worth paying attention to it, it will help you achieve good financial results.
Set a budget and a time period for achieving your goals
It is a starting point for every purpose in your life. Thanks to the clearly defined amount you will postpone and the period in which you should achieve your goal, Setting a budget can give you a better insight into your Business
Take one minute a day to check your expenses
This rule is an important rule. Every day devotes one minute to check your financial transactions. This allows you to identify any problems and track progress in achieving your goals. This also allows you to plan your next expenses each day.
Save at least 20% of your monthly income for emergency expenses
Specify priority spending, then allocate 20% of this amount to emergency situations. An emergency is understood to mean situations such as debt repayment or other urgent expenses that you did not anticipate in your basic financial budget.
Use 30% of your expenses for expenses related to your lifestyle
Spend 30% of your income on pleasure, spend your free time. Include going to the cinema, theater or restaurant.
Create plans for a financial vision
First of all, you need the motivation to improve your monetary habits. Thanks to the created spending board you will have full insight into your financial goals that you want to achieve.
Set specific financial goals
To do this, use numbers and dates, just simple words and descriptions are not enough. Write down how much debt you want to pay back and in what period and how much you want to postpone and for how long.
Learn the issuing mantra
Choose your positive phrase, which will be like a mini-rule for you that applies to your expenses. For example, ask yourself – Will this [write the name of what you want to buy here] be better than a trip to Italy next year? or I buy products only up to a certain amount [enter the set value here].
Create bite size cash targets
Research shows that the further our goal seems to be, the less certain we are of achieving it and there is a much greater risk that we will give up. Instead of setting one big goal like buying your own apartment, try to set smaller and short-term goals as well. This can be, for example, saving a small amount each month to be able to enjoy a wonderful journey after a half-year saving period at the end of the destination.
Get finances and try to shape them in the chosen direction
One study has shown that the more we practice, the more we can achieve. All thanks to the effort after which we are much more productive. It’s the same with finances. If you translate certain rules of your life into the issue of your budget – you will achieve success.
Learn to appreciate and enjoy what you have
Satisfaction in this situation is nothing more than appreciating what we already have, instead of enjoying buying more and more things.
Get financial companions
According to research, friends with the same qualities have the opportunity to derive good habits from each other. This also applies to those related to money. Arrange to meet such people regularly and learn from each other.
When you negotiate your salary, do not immediately convey your expectations
If you first submit your proposed remuneration, you will lose the opportunity to find out at what level you set it – too low or too high. A much better solution is to wait for such information from the company, then you get the opportunity to negotiate a higher rate.
You can negotiate more than just pay
Remember that you can also negotiate your working hours, job title, maternity or paternity leave, and vacation time. Similarly, all projects that you will implement may be negotiated with the employer.
Don’t assume that you qualify for unemployment
At the peak of the recession, only half of those entitled to unemployment benefited from this solution. Before you decide on unemployment, read its rules.
