Eight Secrets to Financial Wellness

Most people want to be financially prosperous, but not everyone becomes rich.

Numerous examples have shown that even if a person is not born into a financially secure family, he still has a chance to become rich.

Surely you have repeatedly noticed that many rich people can simultaneously develop business (successfully build a career), form passive income for retirement age, travel.

In today’s article we will talk about the main components of wealth that many wealthy people use.

  1. Budget planning

Money is spent more rationally if you plan a family budget. This can be done with smartphone apps, Exel software or with a pen and paper. All income and expenses should be recorded. If you have a complete picture of your budget before your eyes, you can see unnecessary financial leaks and stop them.

Experienced planners recommend to stick to expenses in such an approximate percentage:

– 50% – food/food, utility bills and basic necessities;

– 15% – courses (mastering new directions, foreign languages, advanced training), sports sections;

– 15% – unplanned expenses;

– 20% – savings or repayment of loans.

  1. Postponement of money

If you set aside 15-20 per cent of your monthly income, you will get a good amount in addition to your pension in old age. There is another option – tar to take care of passive income in old age. For example, you can buy objects for rent, make profitable investments. Savings have a tendency to run out, and, for example, the property can be rented out all the time.

In addition, savings may be needed for unplanned costs – car breakdown, health problems. Whatever happens, such a fund will be a good piece of work.

  1. Don’t get carried away with loans

There are cases when a credit card can help and can not do without it. Credits can also help, for example, at the stage of business development and expansion. But it is not profitable to live on credit money all the time. Purchases paid for credit money increase by the amount of interest stipulated in the credit agreement, and why pay more for things?

  1. A person pays for purchases twice

People pay for purchases twice – with money and giving up something else, such as another thing or potential savings that could supplement a personal fund. Before a purchase, especially a large one, it is advisable to weigh the pros and cons in order to understand how much you need it.

  1. Be prepared for both ups and downs…

Wealth is given from birth to the children of billionaires and millionaires. In other cases, it has to be earned through hard work. At the same time, it is necessary to be prepared not only for ups and downs, but also for downs. If you look at the biographies of famous rich people, you can identify a pattern – their life did not consist only of victories. There were also failures, not to mention excitement. However, successful people were able to cope with them. They stubbornly moved towards their goal, step by step, implementing their plans.

  1. Don’t get carried away with coffee, lunch and snacks at cafes and restaurants

Have you analyzed how much money is spent on coffee, lunches and snacks on average in places near the business quarter? You can spend from 100 to 350 UAH per day. You get a considerable amount per month, which could be a saving or a future investment. You can make coffee at work, and take lunch with you from home.

  1. Clear goals

To be motivated to work and manage money rationally, you must have goals. Agree, because it is difficult to get to the right destination without knowing the route. Make up the desired goals and move smoothly towards them.

  1. Regular shopping for branded goods is not a profitable investment

Brand stuff is an unfavorable investment. Over time, they wear out and get thrown away. You can sell them as used, but much cheaper than the price in the store. Of course, sometimes you can treat yourself to a branded item, but do not form a wardrobe collections from the podiums.

You can limit yourself from buying extra things by paying cash. Research has shown that people who pay in cash, rather than with a bank card, spend 15 to 20 percent less.

To become rich, you need to work hard, build enrichment strategies, plan your budget, and not make unnecessary purchases. In addition, you need to take care of a stable income in old age in advance.