“Save at least 10 percent of everything you earn and do not confuse your necessary expenses with your desires. Work hard to improve your skills and ensure a future income because wealth is the result of a reliable income stream. You cannot arrive at the fullest measure of success until you crush the spirit of procrastination within you.”-A piece of advice from The Richest man in Babylon.
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1.LEARN TO HAVE SELF CONTROL:
- Saving for retirement is an integral part of any financial plan, no matter what your age.
- Taking the time to learn a few critical financial rules may help you build a healthy financial future.
- Learning to prepare your annual tax return yourself could save you money.
- Start an emergency fund and pay into it every month, even if it is a small amount.
- Resolve to set aside a minimum of 5% to 10% of your salary for savings before you start paying your bills. Better yet, have money automatically deducted from your paycheck and deposited into a separate account.
Try to not to rely on on others for advice, instead read few basic books on personal finance.
3.Know where your money goes:
The best way to manage money is to keep doing budgeting.
Try to keep track of money always and keep your monthly expenses as low as possible this will save you a great amount of money over time.
Understanding how money works is most important part of money management and making money work for you.
- Start an emergency funds:
Having money in savings to use for emergencies can really keep you out of trouble financially and help you sleep better at night. Also, if you get into the habit of saving money and treating it as a non-negotiable monthly "expense," pretty soon you'll have more than just emergency money saved up: you'll have retirement money, vacation money, and even money for a down payment on a home.
BUT that simply doesn’t mean that you keep all your saved money aside at home in locker but try to invest it at a good high interest rate saving account let the money work for you dude...!!
- Invest in health insurance:
Keep some amount for health insurance …...because no one knows what is going to happen to us or to someone in our family, god forbid anything happens how will you be going to pay off your lengthy hospital bills.
You can find some invest in health insurance which suits best to your buget after checking after some other policies as well...!!
- Protect your wealth:
If you want to make sure that all of your hard-earned money doesn't vanish, you'll need to take steps to protect it. If you rent, get renter's insurance to protect the contents of your place from events like burglary or fire. Disability income insurance protects your greatest asset—the ability to earn an income—by providing you with a steady income if you ever become unable to work for an extended period of time due to illness or injury.
You'll also want to protect your money from taxes, which is easy to do with a retirement account, and inflation, which you can do by making sure that all of your money is earning interest through vehicles like high-interest savings accounts, money market funds, CDs, stocks, bonds, and mutual funds.
you can also check out the post on 10 personal finance books that will change your life..!!
5.LEARN HOW TAXES ARE APPLIED IN YOUR COUNTRY:
Its way more important to learn how taxes are applied, tax rates, etc.
Even before you get a salary try to calculate actually how much money you take home net of taxes that will be very much helpful for your budgeting...
Related post:14 The Best productivity hacks and tips to increase your productivity!!!
6.ALLOCATE 30% FOR YOUR LIFESTYLE SPENDING:
- First pay to yourself:
Always keep your expenses lower than your income.
Because,
Small small savings amounts to big savings in future.
7.USE CREDIT CARDS AS LESS AS YOU CAN:
Because using credit card is as easy as swiping a card but do you know Despite our good resolves to pay the balance off quickly, the reality is that we often don't, and end up paying far more for things than we would have paid if we had used cash.
8.IF YOU ARE OWNING LOANS THEN WHAT SHOULD YOU DO HOW WILL YOU MANAGE.....???
Like,
Q- which loan should you pay first...?
A- of course the one with higher interest rates.
Q- which savings account should you open..?
A- actually the one with the BEST INTEREST RATE.
Q- why does credit card debt gives us such a big headache?
A- blaming compound interest is the way more best answer.
9.ALWAYS KEEP TRACK ON YOUR NETWORTH:
Assets- liabilities = net worth
Net worth is the amount which defines where you stand financially.
When keep track of your net worth you will be able to analyse your situation appraise yourself and also will analyse reasons ready for your non performance...
10.ONE MINUTE RULE:
Taking out one minute from your busy day for tracking your expenses, identifying problems and set your spending limit for the rest of day.
11.KEEP FINANCIAL VISION GOAL:
If you keep financial vision goals you will be able to stick to your financial goals.
12.KEEP SHORT TERM GOALS AS WELL WITH LONG TERM GOALS:
Use your short term goals along with long term goals.
conclusion:
learning money management is all the game of mindset and knowing a difference between wants and needs. If we are able to control our spending habits as per our budget and financial goals we will surely head on to the road to success...!!!😊
Do comment me below which tip did you like the most and any of your financial tip which you would like to give it to our reader's.
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