Image by Steve Buissinne from Pixabay
It is not up to you whether politicians and managers learn from their mistakes. But you can draw conclusions for your personal handling of money from negative examples in the area of business and finance. Here are 5 important Personal Money Solution for better money management for everyone:
1. Systematics
Even if you are one of those who love creative chaos – only money helps when it comes to money. Test yourself: could you find your insurance documents straight away? The bills for the devices that still have a warranty? Your landline and mobile phone contract? Electricity bill, tax assessment, loan contracts? Do you know the additional benefits of your health insurance, the amount of your current loan for the apartment? Do you know whether all debits from your account are correct?
Create several folders for your money documents (invoices, taxes, insurance, financial investments, real estate) and your own storage basket, the contents of which you store once a week in the corresponding folders. Note on invoices when and how you paid them (bank transfer, PayPal, debit, etc.). If you pay a lot “with plastic”: Make a note of it every time you use your credit or debit card and compare the list of bank statements.
2. Honesty
Many people are cheated not by others in money matters, but by themselves. Expect the same honesty from yourself that you demand from others. Don’t cheat yourself with overly optimistic expectations regarding your income development. Do not close your eyes to your actual money needs.
3. Curiosity
Forget the saying: “I have no idea about this.” Instead, say: “I would like to know more about it.” Do not leaf through the economic section of your newspaper, but read an article every day whose headline speaks to you spontaneously – for example, because an acquaintance of yours works for the company in question. Do not buy a money or insurance product that you do not understand. Ask your bank advisor or insurance agent. B. why exactly this insurance with this benefit is recommended to you. Summarize what has been said in your own words and ask your counterpart for confirmation. Never sign on your own and spontaneously, always ask your partner beforehand.
4. Discipline
Keep control of your expenses – even if it’s more difficult than ever in the age of online shopping. Do you often spontaneously access “bargains” on the Internet? Get into the habit of doing something else for 10 minutes. You can only take action if you are still convinced of your wish to buy. Even better: Not just waiting 10 minutes, but a whole month.
Many retailers offer free shipping above a certain amount. Don’t let this tempt you to put more into your virtual shopping cart than you originally planned – ultimately, you won’t save anything! Enter your maximum bid on eBay and then let yourself be surprised by the outcome of the auction. This will prevent you from getting caught up in the auction fever and still bidding, even though you didn’t want to spend so much.
5. Foresight & perseverance
Look not in the short-term, but at the long-term financial success. When investing money, set a time horizon of at least 3 years. Develop a strategy for this: How risky should the investment be, which priorities do you want to set, and which goal do you want to achieve with the long-term investment? Then don’t be confused by short-term moods on the stock exchanges: stick to your strategy and only let go when individual investments fall so far that you have to sell to limit the loss (best to set the loss limit beforehand).