Six habits for financial management

To start financial management, we need to develop the following six habits. If we can follow these rules, we can help a financial management developer to learn how to control his or her financial status well.

These rules will make you believe that it is a good idea to develop a financial plan from now on, and it is easy to achieve the goal as early as possible, even a small number of investment is worthwhile. The following describes these six habits.

Habit 1: record financial information.

To be measured, you must be able to understand and be able to understand. Without continuous, organized, and accurate records, financial planning is impossible. Therefore, it is necessary to record your income and expenditure details at the beginning of the financial planning. A good record allows you:

1. Measuring the Economic Position -- this is the basis for making a reasonable financial plan.

2. effectively changing current financial management behaviors.

3. measure the progress made by approaching the target.

Note that you must create an archive to keep financial records so that you can know your income, net assets, expenses, and liabilities.

Habit 2: define values and economic goals.

By understanding your own values, you can establish economic goals so that they are clear, clear, authentic, and feasible. Without a clear goal and direction, you cannot make the right budget. You do not have enough reason to constrain yourself, that means you cannot achieve your expected goal of 2, 20, or even 40 years.

Habit 3: Determine the net assets.

Once the economic record is completed, it is easy to calculate the net assets-this is also the way most financial experts calculate wealth. Why do we have to calculate the net assets? Because only by knowing the net assets of each year can you know how much you are heading for the target.

Habit 4: Understand income and expenses.

Few people know how their money is spent, or even how much revenue they actually have. Without such basic information, it is difficult to make a budget and reasonably arrange the use of money. It is difficult to figure out where to spend money, and make reasonable changes in the cost.

Habit 5: budgeting and implementation.

Wealth does not mean how much you earn, but how much you still have. It sounds like the budget is not only boring and cumbersome, but it seems to be too pretentious. However, through the budget, you can find a large amount of money in your daily spending. In addition, a specific budget is good for us to achieve our financial goals.

Habit 6: cut overhead.

At the beginning, many people complained that they could not get more money to invest to achieve their economic goals. In fact, the goal is not achieved with a large investment. Cut spending and save every dollar, because even a very small number of investment may bring a lot of wealth. For example, how can we save 100 yuan more every month? If you start to invest at the age of 24 and get a 10% profit, you will have 20,000 yuan at the age of 34. When I was 65 years old, those small investments turned into 616,000 yuan. The longer the investment time, the more obvious the compound interest effect. Over time, savings and investment profits are even more obvious. Therefore, the earlier the start, the more data is saved, and the more profits it will multiply.

The above six habits can help us start our financial management life. A good start is half the success. In the long run, I believe that you will achieve your own goals!