How to plan your finances

In order to achieve financial success, you must make the effort. We tell what to do today, to not worry about their material condition in the future.

1. Do not confuse the salary and personal savings

Equity, ie your real savings, more importantly the amount that you earn. Surprisingly, not all of us understand this simple truth. Big salaries do not automatically make you rich and poor - poor.

2. Savings important investments

What part of the salary you postpone for the future, a direct impact on your financial independence and stability.

3. Avoid credit card debt

or your financial well-being crash.

4. Consider your financial situation

Try not to get involved because of the unnecessary things into debt if your income does not allow you to pay them. Live in accordance with their capabilities.

5. Open a savings account

Of course, for your life you will probably have to pay for his studies, a car or an apartment. Savings account in a safe bank will support you in these payments.

6. Analyze your monthly expenses

This will allow to find out what your money goes. Thus, you can take costs under control. The purpose of the analysis - to reduce unnecessary costs. And if, as we advised in the previous paragraphs, you set aside part of the salary, you will only spend what is left.

7. Bring the bill payment process to automatism

It make your life easier and save you not only time but also money. Time paying your utility bills, you do not give a large sum of next month.

8. Spend wisely

It is not necessary to spend money on an expensive car or insanely pretentious mansion, where such costs are contrary to your real financial situation.

9. Have a backup plan

For example, get a bill in the event of an emergency. No one can know for sure how life will turn tomorrow.

10. take out insurance

And again on the emergency and the unpredictability of life. health insurance or real estate will not be superfluous, so keep that in mind.

11. Open accumulative pension expense

"Save for old age" have to, if you do not want to one day be left without means of subsistence.

12. Each year, a little more delay

Gradually delay to pay a bit more than before, and you will not notice how to grow your savings. Yes, it can be difficult. But do not forget the second rule: Invest in the future.

13. Revise their environment

Our environment has a huge impact on us. It is human nature to copy the behavior of others to earn their trust and respect. So wasteful friends will not help you on the path to financial success.

14. Do not be afraid to talk about money

In modern society, the topic of money is somehow taboo. If you are concerned about family financesOpenly talk about it with your partner. Ask for help. Do not let financial problems ruin your life.

15. Remember that happiness is not material

Pleasant shopping induce dopamine surge - the hormone of joy, but only for a short period of time. Things will not make you happier.

16. read books

Already written an infinite number of books on financial planning. You do not have to read them all, just find a few useful tips for you and try to follow them. It would be great if we were taught the basics of personal finance planning at school or university. Maybe the next generation are lucky it more, well, we can only take the initiative in their own hands.

17. Be aware of your financial situation

Before you move in a certain direction, you need to know where you are at this moment. In practice this means not spending money recklessly, and to plan ahead for your budget.

18. Do not forget about taxes

If necessary, use the right tax benefits. Be aware of the possibility to receive a tax deduction for the costs of education, medical treatment and so on.

19. Do not stand on the spot

the career ladder promotion promises to increase wages, and consequently, your savings. Oddly enough, but to some it is easier to complain about the lack of money, than to try to earn it.

20. Put the correct target

Do not set out to accumulate a certain amount to a certain age. Strive to do not think about money. Eternal ideas on how to make, make us unhappy. Money should not be the aim, and the means to achieve it.