Usually, with equal incomes, people have a different quality of life. This is influenced by many factors, in particular, habits. In one of the first places among them are financial: helpful, which raise the level of income, and harmful, which can lead to a financial abyss. Consider which habits are better to get rid of, and which vice versa to get.

1. Accounting

Money loves the account and in order to always have enough for you, you need to learn how to handle it correctly. The ability to compare your income and expenses keep their accounting is useful to everyone.

Helpful habit:  to note any way all the funds that have come to you, and how you spent them. The form is not so important. You are able to write on paper, keep an Excel tablet on your computer, download a special program for your gadget (there are many free options on the Internet). It is also convenient to use a special program in online banking, or at the end of the month to use the history of your online banking operations and balance.

Harmful habit: to take out money from the “magic bedside table” until it runs out. If you can’t get yourself accustomed to controlling expenses, try transferring most of your funds to cashless payments. Paying by cards or gadgets, you will involuntarily monitor costs. After each payment, subject to the activation of the service, you will receive a message about debiting the money and the balance of funds on the card.

Журнал «Народний банкір» №13/2020

2. Goal selection

Without clear guidelines, it is difficult to build an acceptable life plan and choose the appropriate financial and other tools. Therefore, you need a goal. It allows you to realize the desire, identify dreams and needs in clear coordinates: what I want when I need it, how much it costs.

Helpful habit: in addition to controlling cash flows, it makes sense to plan personal finances for the future. It should not only put aside monthly at least 10% of the income for the formation of a “safety cushion”, but also periodically review your assets. Movable and immovable property, investments, savings, etc., must be constantly monitored. For example, if you have a property for rent, it’s worth calculating how much goes for modernization of housing, taxes, unforeseen expenses, taking into account obsolescent housing and the like. Perhaps a deposit will be a calmer and better option. And conversely, if there are enough savings, then there is a chance to try new forms of investment – invest in real estate, government bonds or something else.

Harmful habit: to think that "money is depreciating, therefore, it is not worth accumulating by refusing something today." This is the subconscious way to poverty. Such thoughts prevent you from going ahead and making more money.
You need to accustom yourself mentally to a larger income, regularly and consciously work to increase the amount of money that comes into your life. Stop content with the small and strive for more.

Журнал «Народний банкір» №13/2020

3. Borrowing

The main principle when applying for a loan is not to harm. The loan should not be spontaneous, as they say – “with this thought you need to sleep”.

Helpful habit: use earned money. But there are different situations in life and a loan is not a sentence if you correctly calculate your ability to repay it. So, for example, on some credit cards, there is a grace period when paying for purchases. And if you stick to it, then the percentage for using the money will not have to pay. If housing bought on credit will be cheaper than a rented apartment, then, of course, it is better to have a debt and pay it on time. The main thing is awareness of one’s actions.

Harmful habit: spontaneous purchases without prior payment of required payments. Consumer loans are provocateurs for the emotional purchase of what may not be needed in fact. Often, for example, some expensive gadget is bought for a “status”, for which it overpays on a loan, and you have to refuse yourself a healthy diet.
Remember that first, you must pay the monthly mandatory payments – utilities, education, mobile communications, and the Internet, etc., and then you can only think about a loan. By the way, the habit of constantly relying only on borrowed funds is the way to financial dependence.

Журнал «Народний банкір» №13/2020

4. Evaluation

Everyone knows the formula “time is money”. Evaluate your work with dignity and do not spend money under the influence of emotions.

Helpful habit: it’s worth not just time that is valued, but the work that you do during this time. Do not sell your life for anything. Buying some regular trinket, calculate how much of your working time you spent on its acquisition, is it really needed and is it worth it. Perhaps it is better to spend time communicating with relatives, hobbies, outdoor activities, and not to earn money on this trinket. Having considered the value of your time, you will no longer want to scatter either time or money.

Harmful habit: to have a deceptive picture of wasting time. It would seem that compiling a shopping list is an unnecessary concern. In fact, such a trip to the store will save time and money. By looking at the dates of the holidays in time and buying gifts in advance, you will not only save money but also will not get something caught in haste. Thanks to stocks in large retail chains, you can save significantly, but wisely. To grab anything that is cheaper is not to value your time and money. As a rule, stores warn about promotional products in advance – advertising booklets, SMS-mailings, messages on websites. If, before going to the store, make a list of these products, so it is possible to make significant purchases of really what you need, and not just cheap.

Журнал «Народний банкір» №13/2020

 5. Education

Money requires respect and the ability to handle it, everyone should periodically raise the level of their financial culture: read the appropriate books, take training courses, find a financial mentor.

Helpful habit: to look for the opportunity to receive funds using your knowledge. For example, if you pay personal income tax (PIT), then part of the paid can be returned by contacting the tax office. This is possible in case if you studied or taught your children, paid for medical expenses or insurance policies, bought your first property, etc.

Harmful habit: to use the same tools without revising them. For example, once you knew that it is worth investing in currency, but not always and not everyone needs to do it now. Many lost funds on the purchase of foreign currency last year, not expecting a depreciation. If you plan to study abroad, travel, etc., then it makes sense to buy a certain currency not at a time, in the hope of guessing the best rate, but to make such purchases regularly, averaging and smoothing out the rate fluctuations.

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