Analyze your attitude to money
Often, the source of problems lies not in small earnings and not in large expenses, but in our own perception of money. This happens, and you should not be afraid of it. Before you plan or do anything, sit down and think: what is money for you, how do you perceive it. Ask yourself questions and try to answer as honestly as possible: no one will scold you for the "wrong" answer. But in this way you can understand your own attitude to finances and, possibly, correct some mistakes. The main thing is not to be afraid to be honest with yourself and be ready to work on perception. It's perfectly normal, A reasonable and correct approach.
Make plans for the future
To effectively manage finances not only here and now, but also in the long term, you will need to be able to plan. This is an integral part of financial literacy. Of course, immediately make a plan for the whole year It can be tricky – start small. For example, try to plan expenses for a month. Or set yourself a goal for which you will save a certain amount every month. Two tips will help here:
• Be specific. Consider the terms, amounts and their breakdown by month. For example, in the phrase: “I want to save 10,000,” there is little specifics, but in the reasoning: “To save 10,000 in two years, I will need to save so much every month,” it is;
• Follow the chosen strategy. If you have a goal and the means to achieve it, stick to a predetermined plan. It can be difficult, but only at first, and a positive result will not be long in coming.
Keep a personal budget
Learning how to manage finances means being able to account for and control them, and the practice of budgeting is best suited for this purpose. Write down income and expenses for the month, set spending limits, write down mandatory and optional categories - and try to follow the plan. Don't worry if you can't do everything perfectly the first time: sometimes it takes you to adjust your budget a few months. But some things are best done right from the start:
• payment for financial obligations should be an item of expenditure with the highest priority on a par with payment for housing and communal services;
• if you save money, try to allocate funds for it every month;
• Remember that there are so called emergency expenses that no one can predict. Try to take this probability into account when distributing funds.
Remember that a well designed personal budget will allow you to stay "in the black", spend less and save more.
Open a savings account
Even if you are not saving up for something specific, it is better to have a financial cushion for a rainy day. In emergency situations, it can seriously help out. We understand that everyone's situation is different, and not everyone can afford it give 20% of your income monthly only for savings, but try to allocate at least a small amount for this.
Optimize costs, increase revenue
Try to keep your income in excess of your expenses. This can be done through smart savings, finding new ways to make money, and other opportunities. And financial literacy will help you look closely at them and find them. Remember that income can be formed not only from salary: it is also interest from savings accounts, earnings on assets and investments. As for expenses, financiers advise distributing them according to the principle 50-30-20:
• 50% should be spent on constant and mandatory current needs such as paying bills and financial obligations, car maintenance and household expenses;
• 30% can be used for non-permanent and unnecessary expenses, for example, to buy clothes or go to the cinema;
• 20% should be set aside in a savings fund or in a separate account.
If at first you can't stick to these numbers, it's okay. The main thing is to strive for them.
Don't make impulse purchases
It happens that, as soon as he receives a salary, a person immediately seeks to buy everything on which he saved before. Or he arranges shopping to relieve stress, and buys unnecessary things that will not be useful to him in the future. All this is — impulse purchases, the number of which should be reduced if you want to manage money rationally. At first, this seems like a daunting task, but simple rules will help you solve it. For example:
• Take a time-out before every purchase you want to make. After a few days, the excitement will subside, and it will become easier for you to understand whether you really need it;
• do not arrange shopping in the first days after the salary;
• If we are talking about a large purchase, spend a little more time studying reviews and familiarizing yourself with the features of the product. Finding the right store, using coupons and promotions - all this takes time, but it will help to make the purchase more profitable.
Look for sources of passive income
Don't ignore the opportunity to increase your income. Everyone's situations are different, but if you have free funds, it is better to invest them so that they will benefit you in the future. And it's better to use low-risk tools: they have less possible profitability, but you are unlikely to lose money. You can use bank offers, try to invest in securities, real estate or other assets.
Use accounting and control applications
To date, there are many programs and tables of varying degrees of complexity that help to plan and maintain a budget, control expenses and account for total income.
Be mindful of yourself
It may sound cliché, but we all have goals in life. To please loved ones, to create something beautiful or to grow professionally - everyone chooses something different. But debts, life instability and financial problems only alienate a person from his goal. Financial literacy is a great way to avoid these difficulties. In the long run, it can make you happier, and your life more complete, comfortable and prosperous. The liberated forces and means can be used to fulfill your dreams. Moreover, its achievement will become easier and more effective thanks to the acquired knowledge of financial literacy.