With the title of finansal Personal Finance Management in 5 Articles Finans, we share a five-point recommendation that you think will help your personal financial management.
1-Don’t waste more than you win
First, spend less than you earn. It may seem simple, but in many cases it is easy to do. Spending more than you win will attract you to a financial hole. This leads to stress, distress and conflict. However, it is difficult to reduce our spending habits . But do you like to spend the night thinking about your debt ? Waking up knowing you owe more than you did yesterday? Although it is difficult to break the spending habits, it is more difficult to live with the increased debt distribution caused by spending habits and these debts come to the mountain with interest.
Interest never sleeps , works on Sundays and holidays, does not make any holidays, day and night works every minute. The moment you borrow, the interest becomes your companion. You cannot refuse or walk away from it. It will crush you every time you enter the road.
2-Keep Constant Costs Low
Keep fixed costs low. The most prudent thing you can do about financial flexibility and financial expenses is to keep your fixed costs low. What is the fixed cost , home loan, car loan, installment payments, cable, internet, telephone bills, all of which consist of fixed costs when they come together. A big home loan means you’re going to have a huge debt from your home for too long . A big car loan is the same thing. You have to pay these things every month. These are payments that can challenge your financial flexibility and change your financial lifestyle. If you have a large home loan, you can do less with the remaining money. The more insufficient your income is to cover these fixed costs, the less financial flexibility you get.
Create and use a budget. Nobody takes the budget seriously, but we should keep track of our expenses. Because our expenses tend to move away from us . Budgeting is a fairly simple equation. We have an initiative and we have (our expenditure). If our inputs are higher than our outputs, there is redundancy (savings). If our outputs are higher than our inputs, we have a deficit (borrowing). In this case, you should increase your revenue or reduce your spending. Create a budget to maintain this balance and control your spending. A budget has two basic elements.
Step one: Write down your entries. If you don’t, you can’t follow. And watch them regularly. So, first of all, you have to write something.
Step two: You need to develop a plan. You need to write this plan. A non-written plan is just a wish. In order to reduce your debt, you need to make a plan to start saving. For emergencies, for retirement, save for investments. Prudent lifestyle and living on a budget give us financial flexibility.
Be wary of risky or complex investment plans. Not only do you lose all your savings with a wrong investment but you can even get into debt. If you think of a savings or investment plan, it seems risky or complex, and if you don’t know about this investment tool, remember that this is definitely a bad idea. The truth is that there is no shortcut to accumulate wealth.
There are three methods to gain wealth.
First, if you have a number of expert skills; a great basketball player, an excellent pediatric surgeon, a great architect bun If you specialize your skills like this, it results in wealth.
Second, if you have great business ideas; Facebook, Microsoft, Google. They all started with great ideas from a small group of people.
Third, luck. You can win the lottery. You may have been born out of rich parents. Someone has a great idea and if you’re in the right place at the right time, you’ll be lucky and rich.
5-Save your money
Start saving early and save frequently. Try to make some money every month. Save some amount to put into the bank. Even if there is a small amount of savings, there will be some peace. If you don’t just earn your money, you’ll sleep better at night knowing there’s some money in the bank . But you say, ‘I put my money in an ordinary savings account and only earns 1/10% Fakat. That’s right. You won’t get rich.
If you want to invest in the stock market, diversify first. Do not put all your eggs in a single basket. Don’t put your money in a month. Second, buy in the long run and wait. Investing in the stock market is something of 20 or 30 years. Do not invest in the stock market to earn next month’s rent.