13 07 2020

10 tips to improve financial literacy

10 tips to improve financial literacy

Financial illiteracy is the basis of losses in the modern world, doesn’t matter how much you earn. If you learn how correct and distribute your budget, you can improve not only your financial situation, but also learn how to manage money so that they bring you even more income.

Key tips for financial planning and management include:

    1. The most important and obvious rule is to spend less than you earn! Many, unfortunately, in the presence of a credit card and “appetite” ignore this rule and provide themselves with loans and the stress associated with repaying these loans for years.

    2. The budget is under control. It’s hard for many to formulate their own rules and priorities for budget allocation or to understand where large sums of money are spent. For such people there are a huge number of specialized and convenient applications and programs.

    3. The financial goal is a good motivation that will help to allocate the budget in terms of priorities. If you set yourself the goal of buying a house and will save some of the income on it, you will get rid of unnecessary expenses and get closer to buying your own home.

    4. Form a reserve fund. Set aside a small amount of your monthly income in the “reserve fund”.

    5. Debt priorities. If you have loans, mortgages or credit card debt, prioritize the repayment of these debts. The most unprofitable loans with high interest rates pay off first.

    6. Increase revenue. Try to find a new job or find additional work on freelance, which will help you increase your income

    7. Rise. If you need extra income - ask for an increase your salary.

    8. Be practical! If you live is in a city where it is inconvenient to park a car, get a practical car with low fuel consumption.

    9. Learn and develop. Invest in yourself. Make it a rule to invest in your knowledge, but not in unnecessary things. Attend financial planning courses, read books.

    10. Find hobbies or spend time with friends and family. An interesting hobby will help to avoid unnecessary expenses and walks in the “pay-free” park with friends will take you away from thoughts about purchases.

And one of the surest tips for improving your financial situation is to invest! No doubt all the famous businessmen say that money should work and bring even greater income!