To achieve this goal, it’s good to know exactly what you want to achieve. The more precise you are in determining it – the better you will become at financial management.
For example, replace the phrase “I want to save more” with “I will save 5% more for retirement”.
Many seek to improve their financial habits. This would result in a reduction in stress, as financial difficulties are the main cause of everyday stress.
If the finances are something that are troubling you, here are six tips on how to become better at financial management:
1. Be precise and write down your goals
Studies show that writing down targets increase the likelihood of achieving them by as much as 49%.
2. Make sure you are financially secure
For starters, you can create an emergency fund with assets that will “save” your life if you lose your job or your car breaks down. It’s also good to start saving money for a pension.
3. Make a plan that will keep you running
It should be simple: divide the fixed costs, savings and retirement amounts, and non-interest expenses, such as holiday gifts, from the monthly salary.
Everything you will have left of the salary can be used to spend on what you want.
4. Divide the targets
Consider opening separate accounts for the individual goals you are saving. This way you will easily see your progress.
5. Use the bonuses in a smart way
In the case of a bonus such as Christmas bonuses, you can try the 90/10 rule: use 90% of the funds for big financial purposes, and spend the remaining 10% for something fun.
6. Seek support
Things can become difficult when you pass through them yourself. Do not be afraid to ask for help from a friend, colleague, or financial planner.