5 financial habits that will help you gain confidence in the future.

In uncertain times, it is important to insure yourself against the unexpected.

1. Monitor your income and expenses

The simplest rule that almost everyone knows about. But not everyone keeps track of the balance of income and expenses. Maybe because keeping accounting records is boring, and the benefits of them are not obvious.

Fortunately, technology allows us to avoid opening a large barn book every evening to record all the day's expenses. If you receive your salary on a card and rarely pay in cash, all income and expenses are already recorded in your banking application. The online service, as a rule, divides payments into categories.

And you can check at any time how much money you spent on clothes, training or gasoline.

The app usually keeps a history of your past spending. You can always find out what purposes the money was used for a month or six months ago. But in order to clearly see the dynamics of income and expenses, you can take screenshots with diagrams of receipts and payments at the end of each month. And then, in a graphics editor, combine all the pictures for the quarter in one file. Next year - in six months. And finally, make a final file with a selection of all screenshots for the year.

This way you will receive useful material for analysis and be able to adjust your budget. For example, reduce unnecessary expenses. And allocate money for entertainment in advance and not go beyond the limit you set.

If you actively use cards and online services of two or three banks, then at the end of the month it is worth collecting screenshots from all applications.

And further. It is important to know, without aids or cheat sheets, how much money you need for necessary expenses. Are you sure you remember how much you pay per month for all utilities, mobile communications and Internet? Do you know how much money is spent on groceries and travel expenses? Do you control how much money is spent on subscriptions and paid services? It is worth remembering all the important numbers and knowing what minimum funds you need for a comfortable life.

2. Have a financial safety net

This is your emergency reserve, which you can only use in case of force majeure. It is believed that the optimal size for this purpose is the amount on which you can live from three to six months.

This money should be placed in the bank in such a way that you can withdraw it at any time. Choose from various offers of financial institutions the most profitable for you. Make a deposit, the interest on which can at least compensate for inflationary losses.

The main thing is not to spend money from the airbag on other purposes. You should not buy, for example, a sea tour with these funds. Or new furniture, if the old one is not yet broken and looks decent. For such purposes, it is better to open a separate account and purposefully save money on it throughout the year.

Someone might think: “Why should money just sit there if I can buy something I need with it?” It's up to you to decide, but remember that one of the main conditions for confidence in the future is a cash reserve that can help you out in case of trouble. You shouldn't give it up.

3. Minimize your credit load

A good habit is to take out only necessary loans and make each payment on time.

Before you take out a new loan, you should consider how much of an expensive purchase you need. For example, a mortgage may be the only way to purchase decent housing. A laptop purchased in installments is a good solution if it is a tool that will help you earn money. But a loan for a computer that is needed solely for gaming is not always a justified choice. Just like a loan for the latest smartphone that seems too expensive to you.

Don’t rush to take out loans for such purchases, especially if monthly payments will seriously cut your budget and force you to give up something important.

First of all, you should take out a loan, which will become an investment in your development. For example, you can pay for expensive training in installments. Of course, if you are confident in the quality of the course and have an idea of ​​where and how you can implement the acquired skills. A loan to develop your business can also be useful. Again, if you have an exact idea of ​​how to use the money received to build a business.

If we talk about consumer loans, then sometimes it’s worth giving up on a purchase that is too expensive for you and choosing a more budget-friendly option. Not increasing your debt load beyond what is necessary is an important financial habit.

4. Set long-term financial goals

Think about what major purchases you would like to make in the foreseeable future. Set two or three goals, create a special account for each and start saving. If it is important for you to save money by a specific date, for example, for a vacation in six months, calculate how much you will have to deposit into a special account every month. If you don’t have an exact purchase date, determine how much money you can save regularly and how long it will take you to accumulate the required amount.

Such calculations often help to intelligently assess both your capabilities and your own desires. Let's say you realize that you won't be able to save for a vacation, repairs, and a new car at the same time. Then you have to choose what is more important to you. For example, prefer a budget holiday option, postpone repairs until next year, but buy a car with your own money, not borrowed money.

Such planning will help to rationally distribute the budget. Well, knowing that you can definitely achieve your chosen goals will add confidence in the future.

5. Look for additional sources of income

In turbulent times, it's worth having more than just financial insurance or a safety net. It is important to know that even if you lose your main source of income, you will be able to provide for yourself and your loved ones. To do this, you should think about additional ways to earn money.

It makes sense to look for options for both passive and active income. For example, you can rent out an apartment in which you do not live. Or put your spare money into investments if you know about stocks and bonds.

A great option is to find new ways to earn money actively.

Think about who you can be useful to, what services you can provide, what tasks you can perform. Maybe you should learn skills in a related field. Or monetize your hobby.

You may not immediately find sources of additional income. Therefore, you should start looking for them when everything is in order and your basic income fully covers your needs.

It will be great if the situation remains successful. Then you can earn money for pleasant little things, pay off loans faster, or save up for an important goal. Well, if your income suddenly drops sharply, you will not be left without funds. Knowing that you will always find a way to make money can greatly increase your confidence in the future.

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