No matter what’s the status of your financials, you have to learn how to manage your finances wisely. If you want a good retirement orsave money on electronics, good financial management will move you closer to your goals.
Find Out Your Income and Expenses Ratio
Knowing your income and expenses ration will put you on the right track. Your income should be higher than your expenses. If not, you are in a terrible spot. To do this, write down all your expenses and do the same for your income. Check how much is left after the expenses.
Cut Down The Expenses
Your goal is to increase your savings. Opting for goods with special discountsmight help, but the key is to avoid buying things that you don’t need. That little purse might look so enticing and it’s on sale, but resist to buy it. Finance management is all about self-discipline and execution. Look at some areas that may be triggering the unnecessary expenses like going to Amsterdam city pass. If you drink every Friday, you can reduce it twice a month.
Get Rid of Debt Slowly
Debts are bad. If you are in debt, you have to get out of there as soon as you can. Not only debt accumulates, but it also hinders you from allocating money for investments. It’s a black plague of death in your financial health. Try renting a bik in Amsterdaminstead of paying for a taxi. Learn how to live below your means. Your first goal is to pay it down slowly. Start with the lowest credit card and move to big debts. In this phase, you have to save all the cash you can save.
Set Your Financial Goals
Once your debt is paid and learned the art of saving money, you can now flesh out your plan. Set your financial goals. Put your plans on a board and make sure to remember it each day. You can also treat yourself and buy stuff from online shops like lazada and zalora. But don’t overdo it. Your future self will thank you for it.