Today, we want to share some financial skills to help you reduce the financial troubles in your busy life and increase your wealth. Even if your current financial situation is good, this article can help you improve financial management.
The first step of financial skills is to make a monthly expenditure plan.
This step is the basis of the whole strategy in our entire financial management skills. But this is still a step that everyone ignores. Many people will get into trouble when they see the figures and do not want to encounter various restrictions when spending money. However, if you do not limit consumption by limiting monthly consumption plans, your bank card balance will limit you.
What should a good monthly expenditure plan look like? In short, the cost plan needs to include two parts: revenue and expenditure. Take out your account book and list your income in the left column. This is a relatively simple part, usually including your salary and other sources of income. On the right are some items to be used this month. Generally speaking, it includes food, clothing, housing and transportation. This is troublesome, because this part requires your prediction. Some expenses are fixed every month, and unfixed expenses are difficult to predict. This is also a step of expenditure. Once done well, it can help you better manage your finances. Make sure that the total amount in the revenue column is always greater than the total amount in the expense column. Once the expenditure exceeds the income, it is necessary to quickly adjust and reduce some unnecessary expenditure to avoid spending a lot of money on pickled instant noodles at the beginning of the month.
The second step of financial management skills is that a large amount of single expenditure must be based on the budget.
In addition to daily expenses, each of us wants to buy some large items, or needs to spend a lot of money to repay ourselves, such as going on vacation, buying a new desktop computer, etc. On payday, we will immediately receive a large amount of money, which will give us the illusion that we can easily buy or pay the rewards we have always wanted.
But don't forget that although we earn a lot of money, we need to spend it for a long time. Here, we once again emphasize the importance of the monthly expenditure plan. If you want to take a vacation, please check the entertainment and leisure section. No matter whether you have enough budget, if you have enough budget, then give back to yourself. But if this column is not enough, you will need to save money to delay your wish.
The third step of financial skills is not to neglect small expenses.
Large scale consumption will make us suffer for two minutes, but spending a small amount of money like water usually makes us feel painless. Have a cup of coffee today and buy lottery tickets tomorrow. Small expenditures are everywhere, but only negative numbers in bank cards can attract our attention. Although some people make monthly expenditure plans, they only record large expenses. They think that a small amount of consumption is still very low, so they don't need to care about every penny. However, problems often arise here. If this is the problem you are facing now, you need to fine tune your bookkeeping method.
The fourth step of financial skills is to master all your debts.
If you already have a lot of debts, the first thing you should do is not apply for new debts. Borrowing new debt to repay old debt is the bottom line, because the interest rate of new debt is usually higher than that of old debt. The second is to pay off debts strictly on time to avoid defaulting on high interest. If it is really difficult for you to pay off all debts on time, you must pay off the minimum payment first. Secondly, you can list the interest rate of each loan, give priority to debts with higher interest rates, and minimize the interest debts to be repaid in the future.
In short, if you master these four skills, you can also achieve wealth freedom as soon as possible.