The art of managing money is one of the most important skills necessary for everyone who wants to ensure a stable future for themselves and their loved ones. You don't need to have a college degree in finance to learn this art. It is enough to remember some principles of managing your finances and implement them in life.
Instructions
Step 1
Learn to scrupulously keep track of your income and expenses. It is better if this record is kept in writing in a special notebook, on a computer in a text file or on the phone using notes. This will allow you to see where the money received is spent, down to a penny.
Step 2
Analyze your income and expenses. It is possible that the analysis will show: in what ways you can earn even more, what expenses can be reduced and what expenses can be eliminated. The ultimate goal of such a move is to start accumulating money instead of wasting it thoughtlessly.
Step 3
The next step is the correct use of savings. Money should not be idle. At least they should be invested in a bank at interest. There are, of course, more highly profitable opportunities for increasing funds. These are investments in stocks, mutual funds, at interest in private microfinance organizations.
Step 4
Determine which part of the savings you can risk and invest in something highly profitable, and which part it is better not to risk. Usually their proportions are 50:50. One part of the money is invested in a reliable bank, and the other is invested in profitable but risky instruments.
Step 5
The best option is to invest in a variety of sources of income. For example, invest 25% in a bank in rubles, 25% for a foreign currency deposit, and divide the remaining 50% into parts to invest in a variety of organizations. In other words, it is less painful to lose 10% of your savings than everything.
Step 6
A very important type of investment is investment in yourself. Training, acquisition of new knowledge and skills will make it possible in the future to earn more money or create a private business. You can get a higher education with deferred money, complete some courses, get a new profession or specialty, learn a foreign language or improve your qualifications.
Step 7
Don't count on anyone else's help. This is psychologically relaxing and does not allow you to work at full strength. Don't expect to receive an inheritance or a big lottery win. Many have been waiting for years for capital to fall on them, and during this time they could earn much more themselves.
