Practicing beneficial personal finance habits is the first step towards success in the financial field.
There is often some resistance to acquiring habits you have never worried about before, but certain changes are critical if you want to improve your financial situation.
Here are 7 beneficial personal finance habits that can bring financial prosperity to your life and to those around you: family, friends, co-workers and others.
7 Beneficial Habits for Personal Finance
1. Use the financial control tool
Your financial control tool can be a simple notebook, a mobile app, or a spreadsheet on your computer.
However, it is essential that you know where your money comes from and where it goes.
Most people do not know what their money is for, which is a very serious financial mistake.
By effectively controlling your finances and recording all revenues and expenses , you will be able to make better financial decisions, eliminate unnecessary expenses and avoid unbridled consumption.
Most Brazilians do not like and do not usually practice the reading habit.
For those who don’t like it, be aware that reading has many benefits, such as: improving memory, reducing stress, exercising the mind, greater knowledge, increased concentration, improved vocabulary, ease of writing, fun, among many other advantages. .
If you don’t like reading at all, a few simple steps can help modify this landscape:
- To start strengthening the habit, try to read something that interests you, such as books for those who want to become rich;
- Set up a daily reading plan (start reading 10 pages a day and increasing it over time, but don’t be without reading a day, try it!);
- Try to apply the acquired knowledge. Start reading about financial education, for example, and try to strengthen your habits about it.
Remember: the practice of reading is like the practice of any physical exercise. At first it is a little tricky until your body and mind get used to it, then you will enjoy doing this activity.
3. Save a portion of your salary
Ideally, save at least 10% of your salary, but if that is not possible at the moment, save what you can.
Give priority to some investment that directly debits your salary account, as you will not be tempted to spend the money.
If you are having difficulty with your salary, read this text about not spending your entire salary.
4. Form an emergency reserve
Everyone is subject to an emergency: unemployment, family illness, traffic accident, mechanical defects in the car, home remodeling or any other unforeseen event.
Therefore, it is necessary to create a financial reserve for these moments.
Start by saving a small amount of your income, it doesn’t have to be too much in the beginning, the important thing is to save for that purpose.
5. Use the credit card in your favor
The credit card undeniably comes with many facilities (if you use it to your advantage), but if you don’t have the proper planning and control, your spending goes beyond your budget.
If you have difficulty controlling your consumerism, avoid using your credit card and try to buy cash.
What’s more, by paying cash, you may get some discount.
6. Avoiding loans
For many people, loans end up becoming a routine.
In these cases, it is not uncommon for them to renew the loan before completing the payment, which turns out to be a giant snowball.
If you find yourself in this exact situation, stop as soon as possible.
Ideally, you should not use this “financial resource” except in times of dire need.
You must adjust your standard of living to the amount of money you have available and never the other way around.
So consider what you are making to borrow and try to cut all expendable expenses.
7. Acquire Knowledge Through Audio Books
Sometimes you are tired of reading or are unable to keep an eye on a physical book, such as when walking, driving or even on public transport.
At these times, an audio book is very welcome and is another excellent habit to increase your knowledge on various topics, including personal finance.
Finally, it is interesting that you can reflect on your attitudes in all walks of life.
With small changes, you can achieve great success, just have the willpower and start practicing.