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Mindset & Psychology Personal Finances

25 MONEY Skills (Everyone Should Have)

Do you want this year to be your best year yet?

Then master 25 skills for proper handling of money — and they will help you significantly improve your family’s financial situation.

Take 2 weeks to master each of these skills (then it will take you exactly 1 year to complete these 25 steps).

25 money skills that will lead to financial well-being:

1) Spend money (on what you like)

Money is meant to be spent and provide for your family with dignity.

So spend your money on what you want (i.e. what is important to you and your family).

And, at the same time, reduce expenses to the maximum in areas that are not important to you.

2) Calculate your net worth

Your capital = your Assets – your Liabilities (debts and loans).

Knowing the size and dynamics of changes in your financial capital allows you to not go astray, always go in the right direction and get rich.

3) Give a job to every dollar you earn

To do this, describe in as much detail as possible what exactly the salary you receive will be spent on.

This will save your money from wastage and pointless expenses.

4) Get rid of unreasonably high expenses

Make sure that you are not overpaying for the services you constantly use (i.e. that each of your expenses is optimal in size).

This includes: fees for Internet, telephone, etc.

If necessary, change the provider or ask a discount for you as a regular customer.

5) Make a shopping list

And stick to it when shopping.

Train yourself to make a list like this every time you go grocery shopping.

6) Don’t try to look “like everyone else”

Don’t try to keep up with your neighbor (especially if he earns several times more than you).

Live within your means (and not as shown in advertising and movies about millionaires).

7) Reduce the interest rate on existing loans

Rates are constantly changing and updated.

Do some research and find better terms (toward lower interest rates on your loans).

8) Read about “compound interest”

Now banks earn it from you by giving you loans.

When you start investing, compound interest will begin to work for you (accelerating the process of building your personal financial capital).

9) Pay yourself first

Make saving and investing a priority. This is called “pay yourself first.”

And only after that spend the money.

Set up an automatic transfer of a small portion of your salary to a bank deposit. What will protect you from forgetfulness and inattention when creating a financial reserve.

10) Find like-minded people

The right circle of friends will not allow you to deviate from your chosen path, will encourage you to always be in financial shape and regularly do what you planned.

11) Create an emergency fund

You never know when unexpected expenses will arise.

But you can be absolutely sure that they will definitely arise!

A nest egg, also known as a “reserve fund” or “financial cushion,” will protect you from troubles and financially support you in difficult times.

12) Your money should work for you

Set a goal for yourself — to systematically and consistently form your investment capital.

It should consist of different currencies, assets and financial instruments.

Such diversification helps with instability in the economy.

13) Rebalance your investment portfolio once a year

For a smooth immersion in the topic of investment, I recommend that you study my articles on investing.

Among them there are also articles for beginners.

14) Ask for a raise

Sometimes this is the easiest way to increase income.

When asking for a salary increase, you should be well prepared for the upcoming conversation.

And be sure to make sure that your qualifications have increased significantly (as well as the benefit that you bring to your employer company).

If you feel that you have hit the ceiling in terms of income in this workplace, then perhaps it’s time to start looking for a new place to apply your talents, experience and abilities.

15) Buy the dip when the stock market crashes

Investing is a long-term game. Which is replete with rapid growth and sudden decline in financial markets.

In such “acute moments”, do not let your emotions take over.

And be prepared to buy on the dip (which is the equivalent of a Christmas sale — when good assets are sold at significant discounts).

16) Avoid unnecessary taxes when investing

Taxes can easily “eat up” the income you receive.

Therefore, take advantage of all the benefits for private investors provided by current legislation.

17) Increase your savings and investment allocations

Increase your “pay to yourself” every six months.

For a couple of percent or a couple of dollars.

18) Calculate your daily and hourly salary

This will help you “weigh” in numbers whether the upcoming purchase is worth the amount of time you spent earning the money required to purchase it.

19) Plan in case of dismissal

Yes Yes!

And you should have such a plan too.

Write down in detail in advance what you will do if you are suddenly fired?

20) Find options for additional income

You can make money doing what you love.

To do this, find something that interests you and find out how you can make money on it.

Take time to earn extra money (or increase your income at your day job).

21) Prepare a will

You never know what might happen.

Think about the financial well-being of your loved ones if something unexpected happens to you.

22) Teach your children how to handle money correctly

Teach your children to have strong financial habits from an early age (which will give them a bright financial future).

It is better to teach by your own example — the correct everyday handling of money and wisely made investments.

23) Talk about money with your (future) spouse

Having an open conversation about family finances will strengthen your relationship and ensure alignment between your financial goals.

After all, money problems are one of the main reasons for divorce.

24) Put people and relationships before money

Making good relationships with people your top priority will lead to a happier, more fulfilling life.

That’s why you should be clear about what you value and base your financial plans on those values.

25) Celebrate small victories

Do not hurry! Go slower. Don’t try to master all 25 skills at once.

The fact is that the efforts you make to improve your financial situation will take some time to bear tangible fruit.

Therefore, celebrate your successes, even the smallest ones, in this field (which will help you stay on the right path).

AND FINALLY:

Assess your level of money management.

Count the number of skills you already have and write that number below (in the comments).

Write there — what skill will you begin to master first?

By CashGuy

Online Money Maker

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