How to achieve financial success?

2.10.2022
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полезные финансовые привычки

Today we will talk about useful financial habits that will help you make friends with money.

First of all, you need to learn how to set goals. Each of you has a general idea of how to do this. However, when it comes to finances, many of us are confused and cannot clearly answer the questions of where and why we are moving. Of course, you can also live this way for a long time, but in this case, the probability of accumulating funds for a car, apartment or pension is significantly reduced.

What is a financial goal? First of all, it is an awareness of how much money you need, at what time and for what purposes. The dream of your own real estate is not the same as the goal. Why? When you’re daydreaming, you don’t have a well-defined action plan. What does it mean? What is the difference between the phrase “I want real estate in the capital” and “I want a 2-room apartment in the center of the capital for 4 million hryvnias”? In this case, the goal is as specific as possible. If you have a big goal, then it is better to divide it into several stages, since they will be easier to perform psychologically.

Secondly, there should also be a financial plan, which means that you should not only be able to set goals, but also objectively assess the state of your financial budget. Money loves an account and you can’t change that, so analyze your funds and liabilities. This will help you understand where the money is going. You must learn to separate primary and secondary goals. You don’t need to complete all your goals at the same time.First, put them in a queue based on certain criteria, such as importance and urgency.

You will have to explore your options and set limits if necessary. Budgeting skills will help you calculate your free capital balance. In other words, you’ll know when to tighten your belt and when to let it go.

You need to decide on a way to accumulate and increase your finances. Everyone dreams of having a financial airbag. For these purposes, some people open deposits in a bank, while others start investing in something. Today, to become an investor, you don’t have to hold millions in your accounts.

financial habits

Third, we need to improve financial literacy. In order for financial money to start being “found” in your pockets, you need to learn how to choose ways to achieve your goals. If you don’t know what an AIS is, it is unlikely that you will be able to use a tax deduction that allows you to increase your own savings. In order to increase capital, it is necessary to find additional sources of funds, because it is not for nothing that they say that money goes to money. Many people’s financial horizons are usually limited, which in turn prevents them from identifying obvious prospects. How to understand? For example, if you don’t know how the exchange operates, who the exchange participants are, what players there are in the market, what is the difference between stocks and bonds, then you are unlikely to be able to invest. This means that you will lose the opportunity to earn passive income.

You need to be aware of your finances. If you don’t have enough money left for a “rainy day”, then there is something to think about. In simpler words, you need to eliminate bad financial habits and start managing money.This is the only way you can control financial flows, soberly evaluate your requests, eliminate useless expenses, and learn how to save.

It is also very important to learn how to understand financial companies. Before you agree to cooperate, please specify the information about your potential partner. To complete this task, you need to define the parameters that you will use to select it.

Fourth, you need to fix small expenses and refuse them if they make up a large part of the budget. To make it clear, here’s an example.

Daily expenses:

  • on a latte make 100 hryvnias, in a month it will be 2200;
  • for a business lunch – 350 UAH, per month – 7700 UAH;
  • by taxi to work and home – 300 hryvnias, per month — 6600.

You need to take absolutely all expenses into account — large and small, so you can understand what you can do without, and you may want to change your priorities. Maybe it will be a refusal of coffee, lunch and other excesses. All this will allow you to quickly save up the amount for an apartment. Of course, do not limit yourself completely, find a middle ground between savings and expenses.

Fifth, good financial habits include the ability to procrastinate. Many people may think that this is a limitation, because people lose the prospects of acquiring something now, and in return get vague prospects for the future. It is quite difficult to say “no” to everything, so start saving small, then gradually increase the percentage of savings.

Let’s sum up the results:

  • a financial goal is an understanding of how much money you need, when and for what you need it.A dream and a goal are two different things.
  • financial literacy is necessary for drawing up a financial plan, in which a person must identify goals and tools for their implementation;
  • savings are best made using a progressive system;
  • pay special attention to small expenses, as they eat up a significant part of the budget.

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