There are a lot of temptations in the modern world, advertising everywhere calls for "buy-buy-buy ...". Meanwhile, money, as they say, loves the account, which means control. To keep your finances in balance, offers you time-tested and expert effective money habits to help you.

Brown Ambition personal finance expert Mandy Woodruff-Santos is known for the fact that at the age of 34 she already had a fortune of more than 700 thousand dollars. And by the age of 40, she plans to increase it to $ 1 million and mainly due to income, savings, pension and investment accounts. This is a vivid example of how, thanks to the right financial habits, you can not only accumulate capital, but also significantly increase it. Let's consider the most useful of them.

Habit N 1

"Eat the elephant piece by piece"

Set yourself big goals, for example, to save up for an apartment or a car by a certain date. It is only at first glance that such goals seem unaffordable, especially if the income level leaves much to be desired. But if they are divided into smaller goals and achieve them, then the motivation to move forward will increase.

For example, it is not necessary to immediately put aside a mountain of money for a deposit. Start with at least a small part, transferring about 5-10 percent of any income you receive: salaries, bonuses, royalties, cash gifts, etc. There is an opportunity to postpone more – even better.

Why is this important? This is how you form your financial safety cushion. There is nothing stable in this world. If suddenly tomorrow you have to leave work for various reasons, and you will remain without income for some time, the reserve fund that you have started to form and replenish will help you stay afloat for some time. The size of your financial cushion should consist of at least 6-9 of your official salaries.

You need to take care of a comfortable old age from a young age. Think about how much you are willing to pay yourself for your future monthly or annually. Let it be a little, but the sooner you start, the better for you.

Habit N 2

Don't borrow and increase your credit responsibility

It is better to reconfigure your thinking on how to earn more, what else can be done, what service to offer people to get additional income. Also, if you do not have enough money, then you need to learn how to save at least temporarily, look for discounts, sales, etc.

Of course, to buy on loan, that is, by issuing a loan or installment plan, but to get a product or service right now is much easier. But financially mature people always try to wait: first save up and then buy this or that thing with their savings.

It is economically more profitable to take out a loan only for those things that will become more expensive over time, for example, for an apartment, or for business development, which in the future will bring income even more than your costs now.

Whereas consumer loans are clearly not designed to purchase things that bring income. They are usually issued by people for clothes, household appliances, recreation and more. Plus, the interest on such loans is high, which means that you will have even more costs. Therefore, before taking out a loan and thereby voluntarily incurring additional financial obligations, it is worth weighing all the pros and cons. And even more so, you should not get carried away with "payday" loans in order to pay off your current debt in banks or microfinance organizations. Otherwise, you can get into credit bondage.

Habit N3

Save up for specific goals

When financial planning, take an example from athletes who set specific goals and are motivated for results. If you know why you need savings, what you want to achieve and in what time frame, then the higher your chance to accumulate the necessary amount.

Someone keeps money in different envelopes, signed, for example, like this: for treatment, for gifts, for education, for travel, etc. And even better – to open several deposits for this purpose. This will allow you not to spend your available money on momentary desires, but to concentrate on strategic things and, ultimately, be the winner. 

Habit N4

Diversify your assets

"Don't put your eggs in one basket" is an old truth that is relevant at all times. Diversification involves a certain balance of financial instruments. For example, if you open a deposit, then do it in several banks at once and within the amount guaranteed by the state: 10 million tenge for deposits in national currency, except savings, 5 million tenge for deposits in foreign currency, and 20 million tenge for savings deposits. It is better to keep money in different currencies on deposit.

If you invest your funds in securities, then diversify them. For example, investing money only in stocks can bring losses, and if you add bonds to your portfolio, it can balance your risks and possibly bring income.

Habit N5

Apply the principles of reasonable economy in your daily life

 For example, walk to reduce the cost of a taxi, take food from home so as not to spend money on canteens or cafes. This is not only less expensive, but also useful. This is the essence of reasonable consumption. A very good skill that teaches you not to depend on circumstances and your emotional impulses to buy something here and now. Of course, manufacturers of various goods and services are very interested in people endlessly consuming their products, using bright, enticing advertising, discounts, promotions and other "motivations" for this, but you should not succumb to the tricks of marketers. Take an example from successful and rich people.

So, for example, the famous billionaire Mark Zuckerberg does not follow the latest fashion trends at all and prefers to dress very simply. He always wears the same clothes: his wardrobe consists exclusively of identical jeans and T-shirts. According to Zuckerberg, this helps to get rid of the problem of choice and frees up time for more important tasks. And Google co-founder Sergey Brin, who is among the richest people in the world, buys products and a low-price store, that is, in wholesale markets. According to him, his parents taught him as a child that you can be happy and at the same time do without expensive things.

However, it is always necessary to maintain a balance between strict restrictions and thoughtless spending. If you introduce a complete ban on all pleasures, for example, to observe total savings, then the risk of breaking down and violating internal prohibitions increases significantly. Impulsive purchases are mostly made this way. Therefore, from time to time, you still need to allow yourself small weaknesses.

Habit N6

Change your mindset and get passive income

Passive income is money that you receive regularly, regardless of your performance and other circumstances. Investments in various financial instruments can become a type of passive earnings. If you have free funds, you do not need to immediately run to the store to spend them. It is better to think about the options where to direct the money so that they work for you.

If you have accumulated a large enough amount, you can invest them, for example, in securities of companies that regularly pay dividends. But provided that you have studied this topic, weighed the possible risks. You can also purchase an accumulative life insurance policy, which will not only protect your money in the event of an insured event, but also accumulate a certain amount for an important period of life: a child's education, a wedding, etc. You can consider such sources of passive income as investments in precious metals, stones, renting real estate or a car, and more.

Do not forget that a good investment is an investment in education, obtaining new financial skills and knowledge that can bring invaluable bonuses in the future.

Habit N7

Conduct a regular financial audit

If you don't know what your money is going for, then you probably won't be able to make a personal financial plan. Understanding which items of expenditure you have prevailed is the first step towards favorable changes.

Therefore, at least once a month, recalculate your income and expenses, analyze purchases, what assets and liabilities you have, what can be optimized, that is, what it is worth getting rid of, selling, from which spending and purchases it is better to refuse. Once again, study and analyze the conditions for financial services that you use, for example, for deposits in a particular bank.

An important condition in this "work on financial mistakes" is not to abandon accounting in a couple of days or two weeks, but to make it your daily habit for at least six months. During this time, you will finally get used to the analysis of expenses and income and feel what positive changes in financial terms will begin to occur.

If it is difficult for you to introduce these financial habits into your lifestyle, introduce them into your life gradually, step by step. To begin with, choose for yourself the most effective and useful, in your opinion, habit, and as soon as you get a good result, immediately implement the next one. from

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