To improve your financial situation, you need to know these simple rules and follow them.
Financial literacy is one of the keys to human well-being. To improve your financial situation (to learn how to save and save your finances), you need to know these simple rules and follow them.
In today’s article we will talk about 18 signs of a financially successful person.
You write down, or at least record the expenses
As they say, money loves the account and doesn’t tolerate inaccuracies. It’s a good habit to fix your own expenses. This way you can understand financial mistakes and identify the expenses that could have been avoided. This approach also allows you to adjust the amount of money at the end of the month (before receiving the next salary).
You have several options for saving money
In financial matters, you don’t rely on circumstances and try to protect yourself. That’s why the money is on your bank card or deposit in case of unforeseen circumstances.
You have money savings
You have cash savings: in a bank account or in cash. The amount must be at least three times your salary. Such a stash is necessary in case you get fired at work or if there is an emergency situation requiring financial investments.
With these savings, you will be able to pay your utility bills for 3 months, buy food and generally live a normal life.
With each salary, you set aside some of the money…
The ability and habit of saving money from each salary indicates several good things. First, you’re in a good financial position if you can set aside some of your income. Secondly, the number of savings will increase with each month.
You’re planning a budget for each month
After receiving your salary, you sign the budget a month in advance. In this way you immediately see the necessary expenses: rent, petrol, food, etc. This method allows you to avoid financial imbalances — sometimes empty, sometimes dense.
You know how to save…
You know how you can save money. For example, you buy things and products on the stock, go to the supermarkets full and you know the tricky marketing moves of the stores that push you to make unplanned purchases.
You have financial goals and a plan to achieve them
You’re going to a new apartment, car or trip abroad. You know exactly how much money you’re gonna need and how much money you’re gonna spend. You also know how long it takes to get it done.
You avoid unnecessary spending…
You avoid such expenses as buying a bag in shops, extra paid packing, etc. You know exactly which purchases can be avoided without compromising your own comfort.
You make a list of upcoming purchases
If you create a shopping list in advance, you can avoid additional spending and fit into your budget. This method also allows you to avoid falling into the marketing tricks of stores.
There is a plan to increase revenue
If you earn enough, it’s still unproductive to be content with the same income. You have to move forward all the time. That’s why you develop a plan to increase your income, which may include the purchase of commercial real estate, career development, useful contacts. Besides, you’ve calculated what another career direction you can progress in.
You pay your bills and other mandatory fees on time
You pay your utility bills, insurance, fines on time, because you do not want to face penalties and do not want to treat yourself as a financially undisciplined person.
You don’t run out of money before you get paid
You don’t get into a situation where you run out of money just before your salary. There are several factors that can contribute to this: you plan your budget with great precision or you spend less than you earn.
You’re good at pricing
You know how much basic food, cosmetics and household items cost. So you know how to choose the best offers: price — quality.
You use programs and applications to save money and solve financial problems.
Modern programmes and applications allow for financial accounting and budget planning. They also keep track of stocks in stores and compare product offers.
Interested in investment
Even if you don’t have enough free money to invest now, you are still thinking and planning how and where you can invest money in a profitable way so that it will generate income in the future. This solution will also help to avoid financial losses due to inflation.
You do not take out loans from banks for household appliances and other items for your home.
You’d rather raise the right amount of money for an air conditioner, new TV or refrigerator than take a loan from a bank. It’s the right decision. It’s better to be patient, collect the money and save, because the debt will have to be paid back with interest.
You’re not borrowing money
One of the important principles of proper handling of money is to live within your means. If you regularly have to borrow money from people, there is something wrong with your planning.
Even if you’ve never had a geometry course in your life, you can’t do without math. Simple mathematical calculations allow you to determine which product is more profitable to buy, how much money is spent on the road, etc.
If some of these points are uncharacteristic for you, then it is time to reconsider your attitude towards money in order to pave the right way to a strong financial position. And if most of the statements are true for you, then you are on the right track!