Experts in the field of personal finance claim that the secret to the growth of monetary incomes of really rich people is actually simple. The more affluent a person is, the more competently he handles money.
It is useful for anyone to learn the art of managing money from wealthy people. As practice shows, a few simple principles really allow you to change the ratio of income and expenses and get rid of the need to take more and more new loans.
Is it worth taking out a loan: 6 mistakes of poor people
Advice from wealthy people: choose an acceptable price-quality ratio. It is not necessary to purchase all the most expensive. But, if you decide on a large purchase, let it be a really reliable thing.
It is useful for anyone to learn the art of managing money from wealthy people. As practice shows, a few simple principles really allow you to change the ratio of income and expenses and get rid of the need to take more and more new loans.
- Giving up control over your own finances. Unfortunately, it is difficult for many of you to assess exactly how money is spent, how much money is spent on paying bills, buying groceries and other necessary goods. Needless to say, only a few people think about the need to make savings at all. Any wealthy person has complete information about the status of their accounts, the amount of earnings and items of expenditure. Investments and savings are a prerequisite for multiplying funds, regardless of the size of your income.
- Life in debt. As soon as there is a need for money or a large purchase, many of us do not even think about the question of whether it is worth taking out a loan. Credit cards, commodity loans and non-purpose loans have become so commonplace elements of our lives that they are often issued almost automatically. People get used to living beyond their means, and as a result, debts grow very quickly. Wealthy people, on the contrary, are distinguished by the ability to refuse unnecessary purchases, especially with the involvement of credit funds. They live a full life, but avoid unnecessary expenses.
- Unwillingness to predict future expenses. It is not customary for you to calculate in advance the amount of upcoming expenses for a wedding, open a depository account in a bank for a newborn baby and make far-reaching financial plans. And in vain: it is in such serious life situations that the correct distribution of finances is especially important. Wealthy people are distinguished by the presence of a clear financial plan, which, however, may well be adjusted depending on the realities of life.
- Extra expenses due to fines and penalties. To the question: "Is it worth taking a loan?" the borrower often responds positively, without even asking about the detailed conditions for the provision of borrowed funds. But it is precisely because of non-compliance with the deadlines for making payments that the overpayment on the loan increases significantly. For bankers, fines and penalties are one of the main sources of income. Wealthy people know about this, so they almost never allow delays either when paying off a loan, or when paying for utilities or other mandatory payments.
- Saving too hard. It is not always worth saving on small things. A cup of good coffee or a delicious cake will not cost so much, but it will cheer you up perfectly. Wealthy people do not deprive themselves of small joys - they are looking for opportunities to increase their income. If desired, everyone can find a source of additional earnings. The main thing is to understand what talents and skills can be useful and paid.
- The habit of buying cheap goods. Choosing cheap household appliances or furniture simply for the reason that it is not worth taking out a loan to buy it is not the right decision. The cheapest models are unlikely to last for a long time, as a result, you will have to overpay when buying new equipment for the second time, and significantly.
Advice from wealthy people: choose an acceptable price-quality ratio. It is not necessary to purchase all the most expensive. But, if you decide on a large purchase, let it be a really reliable thing.