How to make so that Personal Finance all - was? Important key point.
are interesting whether many people think of what is the cornerstone of financial wellbeing?
It is difficult to answer this question, but I will not be mistaken if I assume that many people consider that in this case to earn the most important much, and all the rest - minor.
But practice and examples from life show that it not always so.
If to draw an analogy to business, then hardly the companies would prosper if only earned much!
With what financial literacy concerning personal finance begins? Let`s try to assume! And it can begins with the usual accounting of expenses and the income how the accounts department learns? Or drawing up budget? Yes, too one of highlights. But to plan the budget, the analysis of the previous periods of activity or activity is necessary.
And if to structure all this and to systematize, then it turns out:
1. We measure and we consider the income and expenses for a certain period (month, week).
2. We carry out the analysis how many and where left money.
3. We plan, we make the budget for the next period.
It seems banal and all the known things turn out, but I suggest to walk on each point!
1. The budget has to include besides account and revenues, a position which is directed to saving, and ideally to investment. As a rule, it is 10 - 20% of the income.
2. The analysis is carried out for optimization of expenses and search of new opportunities of increase in revenues.
3. Here the key moment of which there is a wish to inform everyone and on which it is worth stopping in more detail! Traditional techniques of accounting learn to podchityvat initially expenses on the basis of which it is offered to plan the budget for the next period. But I consider more reasonable to do the return. At first to count the income in a definite time, and already making a start from these figures, to plan the budget for the next month, week, how cash flows arrive:
If cash flows arrive once a week and are more often, then to define the time period week.
If time in 2 weeks then to be engaged in financial planning of 1 times in 2 weeks.
If once a month then to stretch then about one month, but no more.
I following this approach, it is simpler to you to remain within the opportunities and to be more rational, provident and far-sighted. For example, if your income is not enough for realization of all desirable requirements, then before taking the credit for the solution of these tasks, you will think that you should enter this one more item of expenditure in your budget which is guided by your income somehow. And during reflections, you look, you will have in this respect an idea better.
And one more council in respect of personal finance. When there is a receipt of money in the form of profit, do not spend them until until at you the next reporting period begins, keep till that day when you start planning. Then you will be being able “to have and confront (to be to something or someone face to face, without evading and without avoiding relationship)“ and it is much more positive, than other state - “to spend“ in case money has property to be spent.
A when you the subsequent step, will make investment next month, you rise to higher state “to create“ that is even more pleasant and desired.
That is, you can submit and feel in what state to be more comfortably: is able “to spend“, or is able “to have“, then “make a contribution“ and further “to create“.
Summing up the results of this article, I want to note the key moments once again:
1. It is necessary to plan from calculation of the income for last reporting period.
2. Income gained for the current period not to spend during the next reporting period, creating a state “to confront“ at which the possession and ability rationally improves to think concerning money.
3. To make a contribution, forming a state “to create“ at which the level of possession increases even more.
Here the route on improvement of the financial state, the leader if to be responsible and disciplined, up the ascending trajectory turns out such.
I suggest to try to introduce these simple things and to look how they will work at practice.