What should you know about your money? 4 questions
To be a wealthy person, it is not enough to have a good job or a rich daddy. It is important to understand what your prospects and opportunities are, and how they coincide with your desires.
In front of you Four basic money questions you need to know the answers toTo avoid falling into the financial abyss and to be an independent, successful person.
1. How much have you accumulated?
Every reasonable person sets aside something for "rainy days," "vacations," "unexpected expenses," and "retirement" in good times. There can be many of these items and you can vary the percentage based on your earnings and needs, but it's important to know, How much money you have in reserveTo plan your monetary life wisely and not to be dependent on salary and chance.
Once again: in good times make savings! Don't be lazy to plan and count them. Law.
2. How much are you in debt?
Debt in general is not a very pleasant and compatible with success. If there is an opportunity to endure and not to borrow money, it is better to do so, but if it still happened, then do not lose sight of the debt. Do not get used to living at someone else's expense, you will still have to pay.
You must have an answer to the questions:
- How much and to whom I owe,
- How do I plan to repay the debt, according to what scheme,
- When approximately I will be able to pay off my debts.
Don't be afraid of the answers to these questions. It can be unpleasant, long, exhausting, but it's better to understand the problem than to run away from it. You won't run away, you'll only go deeper into debt.
3. How much do you owe on your credit card?
Credit cards are the scourge of modernity. The bank, of course, they are very profitable, because the user has no psychological barrier to take such a loan, and the interest, more often than not, is huge. But how good are credit cards for financial solvency? Simply terrible! You are working for the bank. So either refuse this service, or always know exactly how much you have borrowed, how much it will cost you, and when you can pay it back. Don't lose sight of your debts to the banks, check monthly if you've met your paycheck or if you owe something.
In general, use a credit card only in case of emergency, otherwise you will never become financially independent.
How much do you want to earn
Money, of course, does not solve all problems, but life is easier if you do not make it the meaning of your existence. So, as in any other business, you can dream, because thoughts are material. If you have calculated and realized that to be independent you need to earn 1300$ per month (or its equivalent in rubles, euros, grivnas, pounds, etc.), do not let this thought go, and there will be a chance to implement your plan.
You might have to work a little harder, but you wanted the money, not the vacation!
Or did you want both? Then decide more precisely what you need more, the experts of Fortrader magazine recommend. And also, do not corner yourself under the power of desire, do not forget about family, about health. Plans will come true, but not the fact that right tomorrow.
Let us also remind you that there are some very useful rules, How to plan your budget. Don't be lazy to use it.
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