We have collected and presented proven financial advice in the form of principles of daily financially competent behavior. Of course, you can always take online loan wherever you are. But it is better to be financially independent. So, we offer you ten tips on financial education from the top financial experts.
1. Create Financial “Airbag”
Spend a little less than you get. We believe that each person should have their own financial “airbag” – such kind of a reserve that can help you in a case of unforeseen situations. We definitely recommend correctly investing part of the income. In this case, you shouldn’t take risks or play. Rather, we will approve the option of slow but sure accumulation by choosing one of the strongest and most successful banks.
2. Savings and Expenses
To know how much money was accumulated, you need to keep a budget. Note how much money you put in the piggy bank and where you got it from.
It is more convenient to do it every month or even every week. Try to divide your income into parts: one for taxes, the other for mortgages, the third for food, the fourth for current expenses, and the fifth sent to a savings account.
So you can more constructively assess the need for your expenses and identify how much you can save next time.
3. Do Not Be Afraid of Loans
You should forbid yourself to take debts: borrow from friends and use bank loans without special needs. But if you really need money, why don’t to ask for a loan?
Many people prefer to spend salary at once in one day and be in debt before receiving wages. This is definitely not necessary. But loans can help you to deal with financial problems and don’t let them harm your life. Moreover, if you can invest money correctly, you can get more benefits from loans.
4. Plan Your Purchases
Refuse shopping as a way of spending leisure time. You need to come to any store only to shop, and spend free time in another place, for example, in the pool.
First, you should recognize the need for a particular purchase and find all the information about the product you want to buy. Evaluate all the pros and cons and then make a purchasing decision. Plan your purchases in advance and take only a certain amount.
Remember, the product may be of the same quality, but much cheaper somewhere. You can use the system of discounts and bonuses, for example, seasonal sales. And buy quality goods. It’s better to buy one good thing that will last a long time than a few low-quality ones.
5. Refuse Unnecessary Purchases
You need to think carefully is this good necessary? What benefit does it have? Often our purchases are completely meaningless. Many people come to the store, see promotional products and immediately buy them.
Therefore, you need to think ahead of where you will use the purchase, and not to buy things that will not be of any benefit.
6. Set Your Personal Financial Goal
If you want to buy a car you should define which amount of money should you save. Analyze how much you can save from your salary of what can you refuse to buy a car (for example, not to go on vacation this year). You can even find another source of income to achieve your goal faster.
7. Develop Your Financial Rules
Strictly follow the rules, then the goal will become closer. Starting to save money on a car, you realize that it is very difficult to follow financial rules. Every time you make a purchase you understand that you become further from your dream.
Indeed, it’s hard not to spend free money, for example, on an extra chocolate bar or a new dress, but to put it in a savings account or invest. But you need to clearly know that reasonable savings made will be able to provide us with not only chocolate in the future but, possibly, everything you dreamed about before.
8. Education Is an Investment
Today, getting an education is an investment in your own future, and it should not turn into wasted time and money. Knowledge, abilities and acquired skills will help you to create career capital. And it will be very disappointing if you cannot use all it in the future and receive income.
9. Health Is Your Resource
Your health is the main resource you should have to be able to achieve goals. Take care and strengthen your health – this is your physiological resource. Do not destroy it with bad habits.
Medicine is not cheap and keeping the unhealthy way of life will destroy both your material resource and physiological one.
Learning the basics of financial literacy is an essential part of self-development. Increase your level of financial literacy, in another way it will be difficult to become a successful person in the future. Do not neglect training courses, they will help to analyze the economy correctly and make reasonable decisions.