1. Know your current financial situation.
Before you plan for any event, whether it's for your child's education, retirement or buying a dream home, you need to know your financial position. If you don't know how to create a financial plan, you may want to consider getting a financial planner. If you do know how to make a financial plan, you can save a considerable amount of money to hire a financial planner.
2. Save regularly.
The habit of saving is a good value. When unforeseen events occur, such as work-tightening or pro-life requiring a lot of medical care and high medical costs, you will never know when extra cash is needed. As a guide, you must set aside your current salary for 3-6 months to meet your urgent needs.
3. Control cash flow.
No matter how rich you are, you must be able to control your cash flow. The simple rule is that things in your pocket need more than your pocket. You need to know which project can provide you with income and what is causing you to spend.
4. Reduce expenses
First record your daily, weekly and monthly fees. Find out the unnecessary costs and eliminate them. A good example of this is paying for subscriptions to magazines that you have not read. If you find all these worthless items, you can greatly reduce the cost by 25-30%. We recommend that you only use one credit card to better track your costs. Make sure you pay the full amount before the expiration date of each credit card invoice and then fall into incredible debt.
5. Review your debt
According to experience, your debt should not exceed 30-35% of total income. Gambling and bad habits are good candidates that can cause you to fall into debt. Poor money management can also lead you into debt, even if you may have fallen into a 2 million lottery or inherited a lot of wealth from your relatives.
6. Frugal, but don't be stingy
Purchase goods only when you are providing goods of value for money. If you know when to buy some good quality products and pay a high price, rather than when to buy something with fewer brands, but still use the same purpose as the branded products, this is a wise move. If you always choose an item based on a cheap price, the item may fail in a short period of time and cause you to purchase another item, which will result in you spending more than you did not expect. You will also be tagged with awkwardness and will not be willing to spend money when absolutely necessary.
7. Review your portfolio
If you invest in stocks, mutual funds [unit trusts] or various funds, you want to review them regularly. Your review period can be quarterly, half year or yearly. For example, when you complete a quarterly analysis and find that the company stock you invest in does not give a target return based on financial data or external intervention, then you may want to replace the stock with a better performing company stock.
8. Educate yourself economically
There is a lot of financial information, and it's free when you go online or go to a nearby library. You can attend seminars, read books, read newspapers and listen to tapes that will give you more knowledge.
9. Generous
There is a famous saying "You get what you give." When you are generous, how do some spiritual forces know this and reward you many times. When you give it, another person you receive will want to give you a natural tender.
10. Pay yourself first
Before you pay all the monthly fees, you should develop the habit of paying yourself first. If you have a day job, then when it comes to the payment date, you can start counting 5% of your salary into another bank account. You can gradually increase this percentage when you have more to bring home salary or if you think you should get more rewards. Many people finally paid the price. When they pay off other fees, they will not have to pay any fees.
Orignal From: How to immediately improve the top ten strategies for personal finance
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