5 golden rules of personal finance planning
Get Rich / / December 20, 2019
Have you made plans? Surely yes. Some are planning no further than the next night (go to the movies), and the other three, five or more years in advance (buy a house, go on vacation, and so on. D.). In addition, for the implementation of any plans need the resources, particularly financial. So, before you build a life plan, you need to learn how to plan their finances. Private financial planning - the whole science. We will share with you five of its basic rules.
Savings - it's a habit. Develop it. Wealth does not come immediately, but gradually. Economy - is the foundation of well-being.
The first thing you need to learn at the personal finance planning - rational spending.
Life is full of surprises (not always pleasant). At any time, it may happen that require immediate wastes (from diseases and fires to weddings and crossings).
Of these two options situations: get into debt or break a jug. Delay of 2, 5, 10 thousand rubles (as you can) a month - this will be your untouchable reserve, your financial safety cushion.
You probably know what Maslow's hierarchy. This hierarchy of human needs: at least meet the needs of downstream all the more urgent becomes the need of high levels.
Maslow's system can be used not only in terms of motivation, but also to plan a personal budget.
Thus, the base of the pyramid - physiological needs. From the point of view of finance is the rent and credits, food and clothing (the essentials). The next stage - the need for security, which means that it charges for electricity, gas, telecommunications, medicine and so on.. After all it gives us a sense of security. Next - the social needs (gifts, entertainment, etc.). Then there are the prestigious needs, that is, the money that we spend on maintaining their status in society (expensive suits, lunch in restaurants and so on. D.). Finally, the crowning pyramid spiritual needs. This is our hobby, travel and so on.
Accordingly, spending priority should be distributed based on the satisfaction of needs - from the lowest to the highest.
Economic calculations prove: if you have accounts payable and free money, they should invest in her repayments, rather than investment.
Income from the deposit (for example) and attached to the credit can be estimated using the indicator ROI yield. Typically, the ROI from the repayment of the loan is 2-4 times higher than that of investment.
At the same time, if you have multiple loans, you should first put out the one that has the highest interest rate.
Money loves account. But if you is not love with apothecary accuracy to reduce the debit and credit, it is not necessary. Your nerves and tension are more than a few "extra" thousands in your pocket.
Engaged in planning personal finances to the extent that would allow to maintain the positive dynamics of profitability and feel safe.
Axel Gustafsson OxenstiernaEveryone wants welfare, but only a few know how to use it.
And what are the golden rules of financial planning do you have?