It is important for every modern person to know about money management methods and which financial habits can be considered useful and which are not. You don’t need to change your whole life to be successful, you just need to change the details. Everything is easier than it seems!

Despite the strength of our desires, we do not always achieve our financial goals. After all, family, professional, and personal responsibilities (along with some pandemic-induced hardships) can stop us from saving money. If you’re looking for easy ways to make your financial life easier, check out these easy ways.

Good financial habits

Make a financial calendar

Many of us start the year with big goals. To make it easier to reach them, make a special calendar. Save it to your phone, tablet, or laptop so you can set reminders and create to-do lists for essential financial tasks. For example, remind yourself to pay your taxes by early May or reinvest in December. The calendar can also be used to set goals: for example, save up 100,000 🪙 before June or track the stages of debt repayment.

Get rid of paper

Avoid paper checks, statements and other financial documents in this format: they can easily get lost. Let them all be in electronic form: it’s easier to work with them. It will be easier for you to find, use, analyze them. Try to pay everywhere with cards, not cash: it will be easier to sum up the results of the month. When you pay in banknotes, you will definitely forget to write down what this amount was spent on.

Tidy up your wallet

If you’re looking to save money, chances are your wallet is full of loyalty cards and retail store coupons. They provide good benefits: free shipping, big discounts, sale alerts, and other special promotions. However, if there are too many of them, you will feel disorganized and distracted. Then the probability that you will use some of the bonuses is rapidly decreasing. Try downloading apps from your favorite shops, cafes, etc. It would be great if all of them can be combined in one place.

Get rid of credit cards

Try not to resort to using them: the interest on them is the highest. Pay off all credit card debt, or at least reduce the number of credit cards to one to begin with. Try to pay off debt and save money. If you accumulate even a small amount of capital, you will no longer apply for a credit card.

Choose your bank wisely

Choose your bank carefully. How high is the cashback? What are the interest rates on deposits? It would seem that with 40,000 🪙 you can get a cashback, at best, 2000 🪙. A bank deposit of the same 40,000 will bring you only 1600 🪙. On the one hand, this is very little money. On the other hand, you once spent half an hour getting them monthly.

Automate your savings

You can set up automatic transfers between accounts. For example, once a month, 10% of your salary will go from your checking account to a savings account.

3 financial habits of successful people

Pay yourself first

This is written in many famous books: “Rich Dad, Poor Dad", “The Richest Man in Babylon”, “Millionaire in a Minute”, etc. On the one hand, this is hard. Yes, and many will say: it is easier to save money from a salary of a million than from a salary of 20,000.

Paradoxical as it may seem, it is just more important to learn how to do this with small amounts. Most likely, you will immediately remember that you need to pay a loan, rent for an apartment, etc. Robert Kiyosaki wrote about this as well. He said that he still paid himself first, but such situations made him think more about how to make money. Each time, he eventually found a way.

Make as many acquaintances as possible

To become richer yourself, you have to make someone else richer. There is no other way: to do something big, you need a good team. Professionals need to be paid for their work. And, believe me, if you have an idea and specialists with the right skills, the first million will not be long in coming. Smart entrepreneurs know that the wider the network of acquaintances, even superficial ones, the more opportunities you have.

Make a budget for the week

And try not to go beyond it. If the purchase is really necessary, you will make it at the end of the month. If it was a momentary desire, you will increase the amount in the savings account. Another good habit: round up purchase amounts and transfer the balance to the same deposit. Remember that large amounts are made up of small ones.

Bad financial habits

Don’t keep track of expenses

You will never know where the money is going if you don’t analyze it. Select categories: mandatory, planned, unplanned. Or in another way: household expenses, mandatory payments, entertainment, etc. After a couple of months, you will notice how important different little things are: from coffee to go to taxi rides. Put a note in your wallet asking if you really need this item. This will help reduce impulsive spending.

Don’t save money

Try to divide the amount that you have left after mandatory payments, like this: “airbag”, “investment”, “dream for which I am saving”. Set aside money monthly. As soon as you can create an airbag that will last at least a few months of comfortable life, distribute the same amount as before, but between the two categories.

Reckless loans

A small number of people take out a loan to buy assets, open their own business. Often these are consumer loans with extremely high interest rates. At some point, you need something expensive: for example, your laptop, phone, etc. have broken down. You already have a loan, but you are taking another one. Savings would have avoided such situations.

If you already have a loan, try to negotiate the lowest monthly payments on it. Use part of the money to pay off the loan, and save the other part.

Post source: kakzarabotat.net