I am not an expert in finance, but I believe I have enough experience in this area to allow me to give you these tips on the habits you should adopt right now, if you want to improve your personal finances, of course. .
Dreams of financial independence, early retirement, freedom from all debts and loans are dreams given to everyone. But the way to achieve this remains the prerogative of some people.
What I propose to you today, therefore, is to find healthy personal finances before you can create your financial independence. This is an objective that requires above all the adoption of good habits that will allow you to free yourself from all your debts and know how to save. Here are the few essential measures to have a healthy personal finance and enrich yourself at the same time.
Only you can make the best decisions to manage your money
Most of us are used to entrusting our money and decisions about it to bankers, investors or fund managers. You may think you don’t have the skills to be more effective at managing your money, but I can tell you that no one can care about your money but you.
It is true that we cannot completely do without banks, but I advise you not to give them complete control of your personal finances . The truth is, they don’t really care about your money.
I recommend that you take the time to learn a little about the workings of the current financial system to become solely responsible for the decisions you will have to make to manage your money . It’s the best thing you can do to secure your financial future.
Don’t live on credit
A great advice that I can also give you in terms of personal finance management is to never go into debt , at least possible, if ever it will be the only alternative that you will have left in serious situations.
Even if you see all his credit ads on TV or on the internet , ads promising you a better life with debt, don’t fall for the trap. Just take into account the fact that by buying on credit, you pay more for the good in question than it is really worth.
I therefore invite you to free yourself from your debts as soon as possible . It may not be the easiest, but it is a mandatory step to take if you want to regain control of your personal finances.
Reduce your expenses as much as possible
Spend less than you earn is the golden rule to improve the state of your finances faster. By reducing your expenses as much as possible, you have more opportunities to save and pay off all of your debts quickly.
I invite you to observe for yourself to realize the fact that we really need very little to live, even in comfort. Take into account that the only expenses that are really worth it are those related to health, food, clothing and home.
For the rest, know how to distinguish the essentials and the really practical tools from the useless and superfluous or simply decorative things.
Make your budget every month
A better way to have control over your personal finances is to make a budget to make ends meet every month. With a budget in place, you will be able to more easily climb all the ladders towards improving your finances, acquiring your financial independence .
So, set a monthly budget.I therefore suggest that you clearly mention all your main expenses every month, your spending habits.
Then take the time to analyze it and as much as possible, reduce your expenses . I advise you in this case to eliminate all your unnecessary expenses and reduce the amount for some. This will not only allow you to have an eye on your money management, but will also allow you to increase your personal salary.
Build up your emergency fund/savings
When you have properly realized your budget, consider paying yourself now. The money left over from your monthly salary, after deducting all your expenses and paying your debts, put it in a savings account.
Building up a savings or an emergency fund should be very obvious, but many of us don’t really pay attention to it. However, I can tell you that it is essential.
By placing your savings in a savings account, you can benefit from the interest that will be added to it each year, but you also have an emergency fund that will allow you to deal with emergencies and unforeseen events.
