Today we live in a society where “money” is equated with “success” and people are judged by their financial status.
We are constantly bombarded with advertisements in which we admire the “beautiful life” and material wealth.
As a result, most people have a wrong idea about money, and the pursuit of wealth has turned into a kind of fetish or even the meaning of life.
However, we forget that money and wealth are just tools to achieve a goal, but not an end in itself.
In today’s article we’ll talk about how to get your financial affairs in order.
1) The more money you have, the softer the blow
In a crisis, there is nothing better than feeling like you have enough money available to cope with even the worst situation.
This saves us from stress, pain and despair — in case of sudden job loss, sharp increase in price tags in stores, etc. unpleasant events that are now happening en masse.
Recommendation: Save and keep a sufficient amount in a bank deposit. Its presence guarantees us that in any development of events everything will be in perfect order with our family.
2) There’s nothing worse than our family finances being caught off guard.
Especially if you are in a very vulnerable financial situation.
What happens, for example, if you have to pay a large monthly loan payment.
Surveys show that 2 out of 3 families will not be able to survive without work for more than two months — without borrowing money.
It will be a complete disaster for them!
Recommendation: People underestimate how much comfort and security savings can provide them. So start saving money immediately (even if you think you don’t need it). Use the saved money to replenish your “financial cushion” and invest.
3) Don’t be afraid of anyone or anything
We never know in advance when we will be fired (we will lose our main source of income).
Therefore, we all need a backup plan “B” like air.
Recommendation: Don’t ignore additional earnings. Do not hesitate to do any part-time work you can in your free time.
4) Money is easy to spend and difficult to save
Sustainable financial well-being is built through consistency of effort (income growth + savings + savings + investments).
Old financial habits die hard.
However, we will all have to find (and go through) our own path to creating large capital, the income from which will be able to fully support our family.