What has happened in recent years, with the pandemic and now the war, proves as clearly as possible that life cannot change at 180 degrees, and not necessarily through our fault.
To be prepared for the unexpected, you have to manage your money openly today.
Acting responsibly takes into account, among other things, the following five tips:
Keep a strict record of expenses
If you keep a daily financial journal, I assure you that the amounts spent do not exceed the monthly budget. You may be surprised to find that some expenses that you consider to be small, but are common, have a major impact on your finances.
For example, if you pay 6 lei per day for a coffee and a croissant, there are 180 lei per month, to which can be added hundreds of lei spent on newspapers or bus/subway tickets.
It would be good to do an analysis and see how you can save money. In this example, you could drink coffee at home and read the newspaper on the Internet.
Raise money in an emergency fund
One of the most important financial principles is “pay yourself first”.
Whether you have a high income or a low income and pay rates, it would be ideal to allocate a percentage for an emergency fund, which can be used when unforeseen expenses arise.
It is good that the money thus collected is kept in a form of an interest-bearing deposit. Otherwise, they may devalue over time. The important thing is to be able to dispose of them immediately, if necessary.
Another option would be to keep the emergency fund in an international circulation value.
Learn to regain your desire to spend
If you don’t have developed self-control in terms of expenses, maybe it’s time to train.
Many people use their credit card to buy things they don’t necessarily need, and then pay a higher than “list” price, with interest attached to each installment.
Learn to get back into the habit of having something as soon as you want it, and replace your credit card with a debit card.
Spend only what you have, in moderation. It is important to set a monthly budget for fun. Do you like to go to the movies, to the pool, play cards, and practice the famous Microgaming games?
Well, make a realistic calculation and make sure you don’t exceed your budget.
If you have money, you will always be surrounded by people who will tell you what to do with them. Some will have good intentions, others may just want to take advantage of you and collect commissions, without your investment having the result you want.
It is best to rely on your judgment and develop personally in the financial field by reading as many specialized books as possible. This way, you will know how to interpret every proposal to invest in a business.
Take care of your health
We spend our health trying to earn as much money as possible, and then we spend the money to get our health back.
It is much cheaper to prevent diseases than to treat them, so take care of your health all the time: do regular medical tests, rest, exercise, and eat healthily.
Last but not least, invest in additional health insurance after carefully studying all the offers on the market. The unforeseen can strike at any time, in any form.
You don’t have to be stressed because of this, but you owe it to yourself and your family to be careful.