Over the years we have accumulated a great deal of knowledge about money, dozens of success stories that read: “I have exhausted the debt” highlighted by numerous psychological studies and linked to the best financial decisions; essential changes that have saved many people.
Here are some financial tips that will change the way you think about money, to put into practice immediately! In this guide you will discover the best ways to budget, increasing your earning potential as a true professional, and these financial wisdom pills are a must, always effective.
Basic financial advice, the fundamental principles
1. Create a financial calendar
If you’re afraid of paying quarterly fees, set a reminder to plan these important actions, just as you would for your annual doctor’s visit or car tuning. A good starting point? Your latest financial calendar, renew and update it.
2. Check your interest rate
Q: Which loan should you pay first? A: The one with the highest interest rate. Q: Which savings account should you open? A: The one with the best interest rate. Q: Why does credit card debt give us such a headache? A: Blame the compound interest rate. Fundamental notion: paying attention to interest rates will help you understand what debt or savings commitments you can focus on.
3. Track your net assets
Your net worth, or the difference between your assets and your debt, is the large number that can tell you where you are financially. Keep an eye on it, so you can keep yourself informed of the progress made towards financial goals.
Make a budget like a professional
4. Set a budget
This is the starting point for every other goal of your life. Here is a list designed to create a personal, direct elimination budget.
5. Always pay in cash
If you keep spending too much, this will get you out of the rut. Do not you believe it? Paying in cash makes you aware, you visualize the correct amount of money, realizing the outgoing money.
6. Take a minute to save
Take a minute every day to check your financial transactions; this simple 60-second act immediately identifies problems, tracks progress and sets the spending tone needed for the rest of the day!
7. Give at least 20% of your income to financial priorities
By priority we intend to create emergency savings, repay debts and fill the piggy bank for the future. Does it look like a high percentage? Perhaps, but this is right; in this way you will live peacefully.
8. Calculate a budget of 30% of your income for lifestyle expenses
This includes movies, restaurants and happy hours; practically everything that does not cover basic needs. Respecting the 30% rule, you can save and enjoy situations at the same time, without guilt.
How to get money and stay motivated
9. Prepare a financial vision board
Do you need motivation to start adopting better habits regarding money? Build a vision board, it will teach you how to stay in line with your financial goals.
10. Set specific financial goals
Use numbers and dates, not just words, to describe what you want to achieve with your money. How much debt do you want to pay and when? How much do you want to save and on what date?
11. Adopt a spending Mantra
Choose a positive phrase to be used as a mini rule of thumb for how you spend. For example, ask yourself: “Is this better (example of purchased item) or Bali next year?”. You will think twice before spending and spreading!
Of course, it may seem trivial, but it works. Taking control of your finances is a way to evaluate yourself, demand the best!
13. Mark small goals at a time
A study has shown that the farther the target appears, the less we are sure of when it will happen, and the more likely we are to throw in the towel. So, in addition to focusing on big goals (for example, buying a house), you set smaller steps, in the short term, in order to get quick results. Some examples? Save a little money each week to take a trip in the next six months.
14. Waste of toxic money
Hello, self-fulfilling prophecy! If you’re wrong, you’re out before you even start (“I’ll never pay the debt!”), then you’re getting ready to fail. So do not be a fatalist and move on to more positive mantras.
15. Get your finances and keep your body trained
A study has shown that more exercise leads to an increase in pay, the trained physique makes us more productive.
16. Find out how to taste the gains
Savoring means appreciating what you have now, not trying to be happy by acquiring more things, it would be useless!
17. Make positive friendships
According to a study, friends with similar traits, can acquire good habits from each other, this also applies to your money!
How to increase earning potential
18. When he gets a salary, he leads the company to appoint the amount in question first
If you communicate your pay immediately, you have no way of knowing if you are doing lowball or highball. Ask the new employer to propose a figure, you can push it to increase or be satisfied with the proposal received without losing anything.
19. You can negotiate more than your salary
Working hours, official title, maternity and paternity leave, holidays and projects you will work on are all things that a future employer might be willing to negotiate.
20. Do not think you are not eligible for unemployment
At the height of the recent recession, only half of the people eligible for unemployment have applied. Learn the rules of unemployment.
21. Discuss the salary of your current job based on the needs of the company
It does not matter to your employer if you want more money to buy a bigger house, his concern is to keep a good employee. When you negotiate pay or ask for an increase, underline the incredible value you are giving the company.
How to keep the debt without losing control
22. Start with small debts, to help you conquer the big ones
If you have a mountain of debt, studies show that paying the little ones can give you the security to face the older ones. We generally recommend discarding the card with the highest interest rate, although sometimes it is unfortunately inevitable.
23. Never grant a loan
If the borrower skips the payments, your credit score will go to the bottom. The creditor must be honest and punctual, especially if it is a friend, as incorrect behavior would damage the relationship. If the bank requires a co-signer, pay maximum attention to the choice. Parental bonus advice: if you are asked to sign a private loan for your university student, first check if your child has reached the maximum limit of general grants and scholarships.
24. Any student residing abroad should complete the FAFSA
Even if you think you do not get help, filling out the form is never a bad idea. Recently 1.3 million American students have lost a Pell Grant, just because they did not fill out the form!
25. Always choose federal loans (rather than private) if you are a student who resides abroad
Federal loans have flexible payment terms, in case your business dreams do not go exactly according to plans after school. Furthermore, federal loans have better interest rates. Be cautious with the required loans and try to avoid the mistakes most committed by students abroad.