Before you move to big start with Small Financial Improvements
Before going big you need to start small,
You don't need thousands of dollars in your bank account to start improving your financial situation
The changes start daily with small improvements that put you on the right path, Today we'll go through some of those small improvements that you can start to implement right away in this moment
Here are 6 small financial improvements to start with
Number One
Number One know where your money goes you might know exactly where each cent is going every month, But you'd be surprised how many people struggling financially have no idea where their money goes
A small inconspicuous amount is debited each month with some obscure reference but it's only a small amount, So you don't bother following up but small amounts add up to large amounts and by keeping an eye on where your small amounts are going could save you a lot of green every year
Number Two
Number Two pay for and buy everything you need, At the beginning of the month all of your bills groceries miscellaneous items everything you need each month
This helps you to have a clearer idea of how much your basic monthly needs actually cost, Take advantage of bulk deals and ensure you're covering your basic needs first before spending on extra
Number Three
Number Three familiarize yourself with financial tools, We're talking about everything from how taxes work how interest works how capital works and so on
Even a basic understanding of these tools and how to negotiate them can make a huge difference for you in the long run and even if you're not using them right now be aware of how they'll work to put you in a better spot to make better decisions down the line
Number Four
Number Four save with a purpose saving money for the sake of saving money is actually pretty bad for one opportunity cost meaning what you could have made with that money instead and secondly you'll lose money in the long run due to inflation
If you have 100k in your bank account right now and you leave it there for the next 20 years that 100k will have lesser buying power due to inflation
Banks always offer low interest rates compared to inflation this is also the reason why we advise getting familiar with financial tools, So saving money for the long run or for retirement is a bad plan
But does that mean that saving is a bad habit well no obviously not but you need to save with a purpose for example saving money for a couple of years to be able to provide a down payment for a house is a good plan
Saving money for an emergency situation also a good plan but always have a plan for the money get into the habit of saving regardless of your income, If you can't save ten dollars when you're making one hundred you won't be able to save one hundred when you're making one thousand
Number Five
Number Five improve your knowledge the net is crammed with free resources to help you improve your financial knowledge, So no excuses that you can't afford a financial advisor keep up to date with financial trends even if you don't use them
Be aware of them and their influence on the current economy
Number Six
Number Six live within your means you might be thinking oh you said small financial improvements and this might sound huge but start off small you eat cereal every morning
But you're always buying the expensive sugar coated crap next time buy oats instead, Not only is it healthier but it costs you a lot less that's what we're talking about
Start small and you'll see how it filters down to the bigger unnecessary expenses
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