Financial habits have a significant impact on quality of life. And while good habits lead to prosperity, bad habits push you the bottom. Do you want to know how to be economically independent? We have compiled for you a list of financial tips, which can make your wallet much thicker.
Accounting and planning
Keep an eye on the money flow: how much money has come, how much has gone, how exactly it was spent. It is necessary not only to keep records of your income and expenses but also to have an overview of assets (property, investments, savings, etc.) and liabilities (loans, debts, borrowings). Then the financial picture of your life will be complete.
Planning your budget and long-term purchases
It is worthy to plan personal finances for the future. A budget is a plan of your income and expenses for the month, quarter or year ahead. It should include savings on long-term purchases (anything you are unable to buy on your monthly income). Then you will not need to borrow money to survive until the salary or to take a loan for a new refrigerator.
Set big and small goals and achieve them no matter what
Setting goals let you describe your desires, dreams and answer important questions: what do I want? When do I need it? How much does it cost? Only after that the way to achieve your goals become clear. It is important to focus on finding your true goals, those important exactly for you, not for your family, friends or society. And remember that the way to reach the goal is sometimes quite rocky and difficult.
Appreciate your time and effort
You should appreciate not just the time, but also the efforts you make during this time. Don’t forget that time can be used in different ways: to play with children, to get new impressions, to do your favorite hobbies. And if you are using the time to work and earn money, you have to appreciate it. Calculate the cost of one minute of your time and you won’t want to waste any more time or money.
Buy gifts in advance
When we buy gifts just before the holidays, we often overpay more than 2 times for the same things comparing to buying in advance. The habit of doing everything at the last moment is always expensive: we lose time when we try to finish the burning project before the deadline, we lose money buying New Year gifts on the last days of December. It is much better (and cheaper) to make a list of gifts for a year and buy them step by step.
Write shopping lists
You want to know how to save money on groceries and other things you buying daily? It is simple: you just have to make a shopping list before you go to the shop.
It’s no secret that stores are designed to make us buy more, especially things that are profitable to the seller but not to the buyer. The shopping list of necessary things to buy, which you take to the store, is the best protection against unreasonable consumption. As a result, you will spend less and buy only what you need.
Entertain yourself for free
Entertainment and fun give us positive emotions and a charge of motivation. And the modern world has accustomed us to buy these emotions. But the main feelings can be obtained without spending any money. A walk with a child in the park, a visit to a library or museum can be organized without money or very cheap. Just ask yourself the question: “How can I get the same positive emotions without spending money?
Get into the seasonal shopping
Nowadays at any time you can buy anything you want: from winter coat in December to a trip to the sea in July. But in such cases you usually overpay. Just think about it and start to buy things in the right season for them. For example, buy warm boots in summer and a swimsuit in winter, like this you can save 50-80% of the price.
Use cashback, bonuses and loyalty programs
Expenses can be profitable and you can return some of the money back to the budget on a regular basis thanks to cashback.
And the refund of interest from the sums of purchases in the form of miles of airlines or flight compensation, hotel reservations, etc. will give the opportunity to travel once a year for free.
Savings and investments
Save and invest regularly
It is definitely worth saving some money for the future.
The goals can be different: to reach financial safety, to provide a good education for children or to secure a passive income when the pension will come. And the sooner we start saving and investing, the more chances to have a brighter future and financial stability later.
Make conscious financial decisions
Often our money-related decisions are spontaneous and emotional. We are hungry, angry, in love, etc. — all this affects our decisions. If they are impulsive, in most cases such decisions are short-sighted and do not affect the future. Or they do, but for the worse. To help your brain, you should try to be calm and rational when dealing with financial issues and use numbers, schemes, formulas, structures, and systems. If you think rationally, check information and make right decisions, you can even how to save money on car insurance, utility bills, and many other expenses.
We hope that our advice will be useful to you!