As you remember, a habit itself is a model of behaviour, a lifestyle. It takes time and certain proclivities to develop it. For instance, for some people, jogging in the morning has become a habit. A person even feels the need for this and only in this way is charged with vigour for the whole day.
There are both harmful and useful habits in our relationship with money. In this article, we will focus on those that can be beneficial, namely, improve your financial situation and help you achieve your financial goals.
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1. Protect Yourself and Your Family
While we are young and ambitious, there is neither time nor desire to think about the future and about possible hard times. However, there are situations that we cannot control:
● disasters,
● accidents,
● diseases,
● death,
● and destructive consequences of the force of nature.
This can happen in the life of every person, and it is not in our power to change it.
But we can financially protect ourselves and our families in case of unforeseen circumstances. Various life insurance programs will help with this. Using this financial instrument competently, you can not only financially protect yourself from unforeseen situations but also create capital for a decent life in the future.
2. Build Savings
Lack of savings is a direct road to a financial hole in case of unforeseen life circumstances. For instance, the birth of a child or disability. Learn to save at least 10% of your income every month, and you can build your capital successfully.
3. Use the “Pitcher Method”
There are several methods of budgeting. And the “pitcher method” is one of the most popular, convenient, and clear. Its essence is that all incomes are distributed in different proportions to six “pitchers”:
● recurrent expenses;
● financial protection (insurance policy);
● financial freedom (savings);
● large purchases;
● learning account (self-development and self-education);
● charity;
● entertainment.
Using this method, you can get pleasure from life, save extra money, and take care of the future.
4. Keep Track of Personal Finances and Family Budget
Just imagine, according to surveys made by sociologists, 80% of average Westerners do not count their money. Moreover, most of the respondents believe that only wealthy people should do this. It is hard to agree with this position. The reason for this result is the low level of financial literacy. Therefore, use a profit calculator to track your income. It is not just that the proverb “Money to spare likes good care” has been passed down from the older generation to the younger for centuries! When a person keeps track of their personal finances and family budget, they:
● see from what sources and what income they receive;
● analyze where and how much they spend;
● understand what is happening with their money, which means they manage their budget wisely.
Forextime blog can also help find additional sources of income, invest free money smartly, acquire many useful financial habits and change your life for the better.
5. Increase Your Income
For financial goals to become a reality, it is not enough just to save and spend less. You can save up to 30% income, but you can earn thousands of times more. Here is another fact: for $100, now, in India, you can buy much fewer goods than five years ago. Therefore, simply by saving money and not increasing income, it will be hard to improve your financial situation.
To multiply your fortune, you can consider such a source of additional passive income as Forex trading. The main process of trading on the stock exchange is carried out through brokerage companies and autonomous brokers. It is they who act as a link between the stock exchange and the trader. A huge number of brokerage companies are successfully working on the Internet today, with the help of which everyone can start making money on the stock exchange, having a small supply of funds for investment. The broker will provide you with the necessary tools for trading. The brokerage company will not only give you access to the exchange but will also conduct preliminary training. After that, you will be able to independently use the tools of the programs for traders provided to you.
Final Words
We have reviewed the five main financial habits that are beneficial and allow you to manage personal finances and family budget effectively. You will not be able to form all the good financial habits at once. Start with one and gradually acquire a new one. So, you will begin to interact with your finances comfortably and competently. It is best to find like-minded people and a mentor who will suggest the right ways of motivation, if, suddenly, in a week, you decide that it’s enough, “It’s not my cup of tea,” “It’s impossible,” etc.
