Perhaps it is not so obvious to everyone to understand that if you have to borrow money then it means you cannot afford to make that purchase, that trip, or anything else.
A good rule of thumb is to check whether it is possible to make the purchase twice without impacting our budget.
There are many best practices for managing money better and better…here are some fairly common ones to avoid missteps when it comes to managing your finances:
- Create a financial diary
- 50/30/20 rule
- Spend one minute of money a day
- Set financial goals
- Set a periodic budget
Learn about other financial best practices
Good financial advice #09 Spend on experiences, not things
Did you know that the best way to spend one’s earnings is in experiences? Objects leave time for themselves, while experiences make you happier and allow you to have fewer second thoughts about spending.
Good financial advice #08 Create a spending mantra
Choose a phrase that can help curb your purchases and rationally choose what expenses to make and how to use your budget.
Good financial advice #07 Set financial goals
Planning is a cornerstone of good financial education and an excellent habit to always be in control of one’s finances. Setting goals, in life as well as in personal finances, is the key to success. Without goals, the road will surely be riskier.
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