If you have just started on the path to financial independence and are trying to make a few attempts at saving and planning, then it is probably quite difficult for you. Especially if you have to give money for education, mortgage or any other loan and at the same time , to pay your monthly expenses.
Therefore, we suggest that you turn to foreign experts and find out what they think about the competent management of personal finances and what universal advice I can give to those who are just starting out. If you have never thought about the proper management of personal finances, then reading this article will be twice as useful for you.
Explore your own sense of money
Erin Lowry, author of Broke Millennial: Stop Stop Scraping By and Get Your Financial Money Together, says, “Start by defining the psychological perception of money.” What is your first memory of money? What is it associated with? What do you think about money today? “
It is difficult to progress in any problem, being immersed in triggers and mental blockages. Ask yourself bold questions about money and answer it honestly. This is necessary to create an effective personal finance system, protected from any problems.
Turn time into money
“Find more time – this is a simple life trick I always want to pass on to people,” said Michel Schroeder-Gardner, founder of personal finance site Making Sense of Cents. Many are sure that they cannot improve their financial situation due to lack of time. But at the same time, they have the opportunity for several hours to watch TV or surf the Internet. If you refuse this, you will find the simplest source of time, which can be converted into money in one way or another. And it’s not necessarily about work – financial education is also very useful and profitable in the future.
Spend less than you earn
Dominica Broadway, the founder of Demystified Finance, believes that being a financially successful person is simple math. “Just make sure your income exceeds your expenses.” You can’t earn more – look for ways to spend less. Proper management of personal finances simply cannot be done without this basic rule.
Don’t behave like most working people in the world, who spend weeks waiting for salaries, recommends Britney Castro, the nominee for the Best Money Expert Award 2018.
Think about how you are really useful, how you can improve your work? Communicate the value of the company, colleagues, superiors. If you work freely and not under duress, negotiations and work issues are easily resolved.
In general, this is a fundamental principle for managing money and personal resources. Self-agreement in every action is the way.
Control your money and follow your strategy
Do not act spontaneously when it comes to accumulations, debt repayments, investments, etc. Set priorities and plan according to which you will develop financial independence.