Do not spend more than you earn
It doesn’t matter if you have a low or high income, you earn 500, 2000 or $ 10,000 a month, if you spend more than you earn, you are in financial trouble.
Do you want to know if this applies to you? Prepare your family budget and calculate your net worth. Information on how to do it, you will find it on our blog and on this channel.
If you don’t spend more than your income allows, you won’t fall into financial trouble.
So simple? Actually, yes, but it turns out that we often forget about this and start making impulsive purchases, either because of an advertisement or because we want to live a lifestyle that is not within our reach.
Save part of your income.
We have all heard it, save 10% of what you earn. But there is more to it. I think that saving, for saving, is not something that motivates us. Therefore, so many people prefer to use their money here and now, instead of accumulating it for an unknown future.
The difference is when you set specific goals for your savings.
- Save to build a house,
- Save to buy a computer,
- Saving for my children’s education
- I am saving for my retirement, etc.
The reasons are diverse, and if it is something important to you, you will be encouraged to continue saving. So set your goal, and when it’s a big goal, like building a house, break it down into smaller stages. Find out how and why it is good to do it in this video.
Have good communication with your partner
Good communication not only helps you to have healthy finances but also to have a more lasting relationship. I know that touching on the subject of money can be sensitive, arouses emotions, but it is something you must do.
You need to win your partner, encourage her so that she also wants to improve the situation. It is easier when both fight for the same objective. I tell you about my own experience.
Avoid consumer debt
Have you heard that consumer debt is your greatest enemy, to obtain security and financial freedom? If you are watching this channel, probably more than once. We often talk to you that you must avoid consumer debt at all costs, and learn to depend on your money.
- Do not use limits on credit cards.
- Don’t buy things in installments
- Do not borrow money from family, friends, etc.
This will also help you keep a budget. If you know how to manage your money well, you have no need to fall into debt.
They tell us that only with debts you can obtain objects that you want so much. This is the lie that even I believed for a long time.
And one of the reasons we believe this is because we are impatient, our mind tells us:
- I want to have this now, only this way I will make happy.
- I am not willing to wait until I save the money. I want it now.
- If you did not buy it on credit, I would never have it, I know myself, and I know that I am not good at saving.
I tell you that if you are able to pay the fees, you are also able to save this money.
Always looking to learn about finance
Let’s be honest, in school, college, university, they teach us little or nothing about personal finance.
For this reason, there are as many people spending as there was no morning, waiting for the government to solve their problems, or simply putting on the excuse that I am poor but happy, or I am poor, and thus, I will die.
Working to improve finances does not mean enjoying lifeless, being unhappy, or living in misery. Having healthy finances is having peace of mind, seeking continuous improvement, and meeting your goals.
Do not close by making excuses or giving this responsibility to others, and you are the only one responsible for your situation.
It doesn’t matter if you currently earn little or a lot, if you have a university degree or not. If you do not learn how to manage little, do not think that you can manage money well, when they are large amounts.