How to manage money

How to manage money before investing is the key. First of all, you must become a financial expert, and how to allocate your monthly salary is reasonable. In fact, it is not difficult to start financial management. If you are about to start or are already thinking about what is a healthy concept of financial management, you have made a good start. There are many good practices that can help us start our own financial planning. The following habits, if followed, can help a person who has just started to manage money and learn how to control his financial situation well.

These rules will convince you that it is absolutely a good idea to make a financial plan from now on, and the earlier you start, the easier it is to achieve your goal, even if it is a small investment. Let me elaborate on these habits.

Habit 1: define values and economic goals.

Knowing one's own values can establish economic goals and make them clear, definite, true and feasible. Without a clear goal and direction, it is impossible to make a correct budget; If you don't have enough reasons to restrain yourself, you won't be able to achieve your desired goal in 2, 20 or even 40 years.

Habit 2: Cut back on expenses.

At first, many people complained that they could not invest more money to achieve their economic goals. In fact, the goal can not be achieved by a lot of investment. Cut expenses and save every dollar, because even a small investment may bring a lot of wealth, such as saving 100 every month. What is the result? If you start investing at the age of 24, you can get a return of 10%, then at the age of 34, you will have 20,000 yuan. By the age of 65, those small investments had become 616,000 yuan. The longer the investment time, the more obvious the effect of compound interest. As time goes on, the benefits brought by savings and investment become more obvious. So the earlier you start, the more you save, and your profits will multiply.

Habit 3: record financial status.

If you can measure, you can understand, and if you can understand, you can change. Without continuous, organized and accurate records, financial planning is impossible. Therefore, at the beginning of financial planning, it is necessary to record your income and expenses in detail. A good record enables you to:

1, measuring the economic situation-this is the basis for making a reasonable financial plan.

2. Effectively change the current financial management behavior.

3. Measure the progress of achieving the goal. It is particularly important to note that in order to keep good financial records, you must also establish files, so that you can know your income, net assets, expenses, liabilities and so on.

The above habits can help us start our own financial life. In addition to patience, financial management should also have the financial management concept of "small things don't take advantage, big things don't do". As long as you concentrate on business development, small areas can also achieve great things. A good beginning is half the battle. Stick to it for a long time, and I believe you will also achieve your life goals!