As you know, financial success is considered one of the main priorities in the life of every person. But did you know that more than 87% of all people do not even keep records of their expenses and income?
Why is this dangerous? According to statistics, about 10–20% of all the funds received by these people actually disappear without a trace – their owners simply cannot remember what they spent money on.
But this is still the best. Many do not even really can tell where 40 or more percent of their salary has gone. Why is this happening and what will happen if we learn how to properly manage all of their income? Next, you will learn the basic laws of financial success, which will help to understand these exciting issues.
Control of expenses
Try at least 30 days to keep a complete record of all your income and expenses. You can record all the wasted paper or download a special program for accounting for finances on your computer.
Even these simple actions will allow you to discover the so-called financial holes and determine where that 10–20% of your income go that you cannot remember.
Having assimilated the previous rule of financial success, do not rush right away with a joyful exclamation to run to the nearest grocery store for spending the savings. Every month, try to regularly save at least 5-10% of your salary.
Believe me, with proper control of financial flows, this will not affect the level of comfort of your life.
Increase your capital
It is not enough just to keep money under the pillow. We also need to make them work and bring even more money. Otherwise, the inflation rate will quickly ruin all your joyful expectations. A good idea would be to put your savings on a bank deposit. But its yield of 10–12% per annum is barely enough to cover losses from a fall in the national currency.
Try to regularly pay attention to investing, and even better to make an investment a mandatory part of your life. After all, apart from banks, there are quite a few other tools that allow with the proper experience to receive more than 20–30% of passive income per year and achieve financial success.
Invest not only in various assets but, above all, in yourself – only this way you will be able to achieve all new peaks.
Say no to all debts
If you apply the above recommendations, then over time you will have even a small, but already quite tangible capital, which will become more and more monthly. The next time you have a need or simply a desire to purchase something, do not rush to immediately run to get a loan.
Getting into debt is a very bad habit that led to the complete collapse of all the dreams and hopes of many people. Try to get rid of it today. And if you really need money, you can take part in it from your savings capital.
Financial success and its protection
Ideally, you should have not only constantly replenished investment capital, but also a certain financial safety cushion, for the creation of which you need to allocate separate funds. This money will allow you to get out of various difficulties and help get rid of the desire to go into debt.
Also, do not ignore the various insurance programs. Of course, we hope that nothing bad will happen to us and our property, however, with this approach, any unforeseen circumstance will leave us with nothing.
Therefore, it is necessary to have at least a minimum insurance package for all occasions – starting with your health and ending with movable property.
These were the 5 basic rules of financial success. As you can see, in them there is nothing difficult. However, you can be sure, that when their subject your financial situation significantly corrected on the best side. Successes and Maximum income for you!