Each person makes his own personal plans. For some, they are short-term and limited to the next evening, while for others they are designed for several years ahead. In order to implement any plans, whether short-term or long-term, you need to have financial resources. Therefore, before you start making any life plans, you need to learn how to plan personal finances. Personal financial planning is a whole science, where its own rules apply. Five basic rules, which I also call “golden”, will help you rationally manage your finances and teach you how to count your money.
Economy
It is necessary to learn well and accept for yourself the fact that the foundation of well-being and wealth is economy. Make saving a habit. When planning your personal finances, learn how to spend your money rationally.
The presence of a financial airbag
Life is such that at any moment it can present a surprise. Regardless of whether this surprise is pleasant or unpleasant, it may require immediate expenses. In order for such surprises not to take you by surprise and not force you to get into loans or debts, save as much as you can from each financial receipt, even if it is a small amount. Try not to spend this money unnecessarily. At first, this will require a certain amount of endurance and self-discipline, but in this way you will create your untouchable reserve, or financial airbag
In binary options trading, money must always be counted. Your investments must be constantly monitored.
If you use risk management and trade strategies, it is easier to calculate.
Needs-based planning
If you still do not know about Maslow’s pyramid, we recommend that you familiarize yourself with it. Its essence lies in the hierarchy of human needs and boils down to the fact that as the underlying human needs are satisfied, the needs of a higher level become more and more relevant. Maslow’s system is used both to motivate a financial goal and to plan a family budget.
At the base of Maslow’s pyramid are the physiological needs of a person, that is, the most necessary for his life support: payment for an apartment, utilities, purchase of the most necessary products and clothes. Then comes the provision of human security, that is, spending on everything that can provide a sense of security. The next step of the pyramid determines the social needs of a person. These include spending on gifts, holidays, entertainment. Prestigious needs, the next step, include spending on maintaining status: expensive clothes, lunches or dinners in IT restaurants. At the top of the pyramid are spiritual needs: travel, hobbies, and so on.
Spending should be distributed as your needs are met, from the lowest to the highest.
Investments are made after repayment of loan obligations
Economists in their calculations proved that in the presence of accounts payable, it is wiser to first invest free money to repay the loan, and only then should you invest. To assess the profitability of investing and investing in a loan, specialists have developed a special indicator of ROI, which is several times higher than the loan repayment. If you have several loans, you need to repay the loan with a higher interest rate first.
Working with personal finances should be fun
To ensure financial stability, money must be counted. But this should not be brought to fanaticism either. If you are not one of those who like to sit over numbers and calculate everything with an accuracy of a penny, then this should not be done. A couple of saved rubles is not worth your nerves and peace of mind. Try to plan work with your personal finances so that it brings not only income, but also pleasure.
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