A person’s material well-being depends on the volume of personal finances, so it is necessary to wisely manage your financial resources.

Finance and money

It is important to understand that money and finance are different concepts. Money represents specific banknotes in a wallet or numbers in a card/current account. But finance is money that is in circulation for the purpose of making a profit, that is, it actually represents capital that can generate new money.

While the money is in a person’s current (personal) account or in the form of cash, it purchasing power inevitably decreases. This is due to inflationary processes, during which money gradually depreciates, which usually manifests itself in increased prices for goods and services. An economic crisis caused by default, devaluation or hyperinflation can quickly depreciate money. When money is put into circulation (investment), it turns into a powerful financial resource capable of making a profit.

Personal Finance Basics

The basis of successful financial management is always a strong foundation consisting of 3 components:

• general financial literacy;
• life priorities, values ​​and goals;
• a properly constructed financial strategy.

The more deeply a person understands finance, the better prepared he is for economic crisis. Systematic analysis of economic data (GDP, unemployment rate, inflation), as well as tracking world events, makes it possible to independently predict certain events in the economy. This allows you to prepare for them in advance and ensure effective protection of your personal finances from possible losses.

It directly depends on life priorities financial strategy. If a person wants to live alone in a remote village and engage in agriculture, his strategy will be to preserve existing capital and increase it slightly through income. If he wants to actively enjoy the benefits of civilization, build a career, live in big city and become financially independent, then the strategy must necessarily include the following points:

• short and long term goals;
• private financial plan, which records income and expenses;
• sources of income;
• accumulation of personal capital;
• protection of personal finances.

conclusions

Secret of success wealthy people consists of the ability to find different sources of income, plan expenses and accumulate funds for the purpose of their subsequent investment in promising projects. Only such an attitude towards personal finance can lead to a systematic improvement in your financial situation.

Competent management of personal finances is a particularly valuable quality, the possession of which contributes to confidence in an unstable economic situation. Exchange rate fluctuations, declining purchasing power and rising inflation force us to increase our knowledge in the field of personal finance management in order to save and increase them.

What is finance

Finance is a collection economic relations on the formation, distribution and use Money. Finance can be owned by economic entities, such as the state, enterprises and organizations, as well as individuals, that is, personal finance.

If you understand all the functions of finance such as:

• profitable
• cumulative
• distribution
• control

then you are the type of person who can deny themselves little things in order to get more in the future. But what about those who live from paycheck to paycheck, unsuccessfully try to create a financial “safety cushion” and postpone the fulfillment of their desires until an indefinite “later”?

When there is no money: recognizing the problem is half the solution

Let's start our conversation about finances with the fact that the ability to manage the main mechanism of your well-being begins not with a certain book or training, but with you and your desire to master this science. There are many different programs, where at the forefront are personal finance, management secrets which are subject to you. However, until you come to the conclusion that you are ready to limit yourself in certain things, all this is a waste of time. However, the first recommendation is the book - Robert Kiosaki's bestseller “Rich Dad Poor Dad”, reviews of which motivate better than any presentations.

In most cases, the lack of free money is not due to the fact that people earn little. Yes, of course, there are certain nuances here too, but we’ll talk about that another time. Effective personal finance management This is only possible when you are ready to recognize the problem, the essence of which is that spending exceeds earnings, and begin to fight it. The best way There will be a lesson from a cool specialist. We recommend the online course “7 Secrets of Financial Psychology” from psychologist and Internet entrepreneur Dmitry Trefilov. This is a very popular and useful course in a convenient format.

Break out of the vicious circle: signs of financial illiteracy and ways to combat it

Let's try to find out in practice whether you need financial advisor and is everything as bad as it might seem at first glance, because people with different income levels complain about the lack of money.

Below is a list of the main signs of financial illiteracy:

• debt payment is terrible

Existing from paycheck to paycheck often gives rise to a special category of people - those who like to take short-term loans in the bank, or take advantage of the kindness of friends and family. An uneven distribution of spending before your next payday leads to the fact that you are forced to pay part of the money in the form of debt and again feel a lack of funds, that is, look for a way out of the situation through new loans.

• impulse purchases

Purchases made in a fit of emotion leave a hole in the budget and gather dust on the shelves for years. Personal finance management course recommends overcoming temptation and refusing to purchase things that you have not previously included in your shopping list.

• lack of money for a rainy day

Force majeure situations happen to each of us, say, unplanned car repairs or illness of loved ones, therefore, there is a need for a certain amount of money. Since there are no savings, we return again to the first point, namely, immersion in loans and debts;

• if you don't have a goal, you don't do anything

Lack of financial goals leads to careless handling of money. It happens that even with savings, it is not possible to make the necessary large purchases, since important expense items were not planned. First, try setting yourself a small, but fairly easy to do financial task. Over time, small victories will give you the opportunity to move towards bigger goals.

• life without fear for the future

Often we prefer to live only for today, because the future looks uncertain and distant. Pension reforms and weak support from the state have led to the fact that in our country it is customary to think about a pension shortly before reaching it, which is fundamentally unreasonable. Start taking care of your future now. Get a full official job wages. Make a choice in favor of a reliable fund for placing insurance premiums and be sure to draw up personal financial plan.

If at one of the indicated points you recognized your style of handling money, then it is worth determining a strategy, and here the advice and recommendations of successful entrepreneurs and investors who are happy to share their experience will provide invaluable help.

The path to financial freedom: how to take control of the situation?

If you are reading this article, then you are in search of an answer to the question posed above. No we won't call you to lead home accounting on paper. After all, there is a modern solution to the problem - online personal finance management . Internet ubiquity and accessibility mobile communications turned boring check counting into an exciting process. Use electronic devices and various applications. Choose the most convenient for yourself. For example: the financial game “Cash Flow”, founded by Robert Kiosaki, will help you master entrepreneurial skills and the basics of the financial mechanism.

Finance, plan procurement, control of income and expenses - all this is of interest, but you should not go too far. The regime of strict savings will lead to the fact that you will lose your taste for life and again begin to spend money without restrictions. You need to save, but not at the expense of communicating with friends and family, acquiring or receiving additional education.

Personal finance management book calls to pay attention to an important component of your calm future, namely risk insurance. You can check your life plans down to the smallest detail, but it’s not a fact that everything will turn out exactly as you predicted. In case of failure (for example, unexpected layoffs at work). Don’t let your dreams of a prosperous life collapse, take care of your “tomorrow” in advance.

The other day I looked through a lot of books on personal finance and was surprised at their similarity. And it so happened that I have been involved in corporate finance for a very large part of my life, so I could not resist expressing an alternative opinion.

I understand that I may offend some people's sacred cows, so please bear with me and keep in mind that this is just my point of view. And I will appreciate your comments.

The size of the article limits the flight of my literary imagination, but I tried to highlight the main points that are worth paying attention to when planning personal finances.

Expense accounting is a tool for financially insolvent people

Which, by the way, takes a lot of time. All books on personal finance recommend keeping track of your expenses. Now there are a huge number of various programs and web services for this. What is the purpose of this process? It is declared that this will help you better understand your expenses and find hidden sources of additional money for investment. But for some reason it seems to me that most often cost accounting is carried out in order to understand “if something happens,” as well as simply for the sake of the process itself - accounting for the sake of accounting, without any purpose.

I also believe that this is a tool for those who are not financially successful. Imagine that you are. Does it make sense to keep track of expenses in this case? Does it matter how much Coca-Cola you drank during the day and where you had lunch? This will be a waste of your much-appreciated time, which would be better spent building your financial strength.

The second disadvantage of constantly maintaining such records is the loss large quantity time. Every day you need to spend time on such accounting - 5-10-20 minutes. A very decent number of hours accumulate in a year. Now, if everyone spent the same amount of time thinking about how to increase their income, then, it seems to me, the result would not be long in coming.

But still, expense accounting is an excellent tool if you use it wisely and periodically, and not constantly. A person who works as a hired worker has a very stable structure of income, time and expenses. If we exclude large purchases and unforeseen circumstances (accidents, illness, vacation...), then the expenses will be approximately the same from month to month. Therefore, you can do expense accounting, for example, once every six months to better understand your current situation. And the freed up time in the remaining five months is better spent on something more useful.

And most importantly, remember: if you spend everything at zero, then no accounting will help you - you need to either increase financial opportunities, or practice self-discipline.

Balance sheet accounting is the best alternative to operational accounting

Each of us knows much more about our income than about our expenses. It is a fact. There are fewer sources of income and they are better controlled. Why not use this to build your own?

It's actually very easy to do this.

Let's imagine that you have three places where money is stored: bank, cash (under the sofa), investment fund. And all the money you make goes to one of these places. Then to understand your financial condition, you only need to keep track of the balance in these “places”.

Here's a simple example:

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Using this plate you can even build a beautiful graph and calculate percentages.

With this formulation of the problem, with balance sheet accounting, your financial goal The idea is that the “Total” column should grow from month to month, and grow faster than inflation. If anyone is interested, I can tell you how to calculate your inflation, the real one, and not the nonsense that government statistical agencies tell us.

The option with balance sheet accounting is extremely simple to implement, does not require as much time as accounting for expenses, and the effect is the same. Moreover, it should be done once a month, not daily.

Budgeting is a Great Financial Management Option

Budgeting is a popular topic in large companies. It was thanks to him that the popular expression “master the budget” came into use. But this tool is not only for companies. It can be successfully used.

Let's say you earn $2,000. You agree with yourself that $500 a month will be put aside for a rainy day in a jar (in a jar, not in a bank), and $1,500 is your monthly spending budget that you can spend at your own discretion.

That is, you don’t have to keep track of how you spent $1,500, but you definitely need to keep within this amount.

This is a very simple tool. And in fact, everyone who now lives from paycheck to paycheck uses it. The only problem is that nothing is postponed.

Of course, such an approach will require a certain self-discipline, because you know that somewhere there is another $500 that is tempting. But no one promised that it would be easy.

Ignore investment pressure

All the books and articles tell you that you definitely need to invest. That this is the only way to achieve financial independence. This is correct advice, the only thing is that it is better not to overdo it and approach it VERY carefully.

If you honestly look around, there are a lot of all kinds of “ugly” things around. investment proposals: PAMM, MMM, HYIP, trust management… Many of these instruments are not regulated by any laws at all, and you don’t need to tell me what is written on the websites of forex brokers.

Therefore, if at the moment you do not have any investment idea, then you should not be sad and rush to the first offer that comes your way. You also need to be clearly aware of the risks and the amount you can lose.

To understand this better, I strongly recommend that you read the book Nasim Taleb "Antifragile", there's a lot there good examples not only from the world of finance.

I would also like to note that the investment process itself can take quite a lot of time. After all, you will have to gain new knowledge, spend your attention and time on the investment object... So if you are just saving money in the bank, then this is also normal. Believe me good investment will come to you, so you shouldn’t invest all your money in MMM-2015.

Enjoy working with your finances

Counting hard and slogging over money is, of course, good, but it’s better not to. If some investment or some approach makes you overstep yourself or do something you don't like, then give up that nonsense.

You should have fun. And if this means sacrificing a couple of percent per annum, then go for it. This advice may be a little counter to the idea of ​​maximizing profits, but believe me, it's worth it. Your nerves, tension and Bad mood cost more than a couple of percent.

Also in the article I deliberately avoided all issues with assets, cash flows and an estimate of the cost, since this is a very large topic and I did not want to clutter the article. I'll tell you something next time.

Thanks for your feedback and comments.

This article reveals how to achieve financial freedom and independence. Using these money management secrets, every person who applies them in their life will definitely become very rich.

All people use money, but unfortunately not everyone knows the secrets of money to increase it. Many people use money incorrectly, becoming its hostages and “slaves”. They buy unnecessary things, goods, services, choosing beyond their means, but more expensive ones. This leads to a predominance of expenses over income, and as a result, such people slide into an uncomfortable life and poverty.

Correct handling of your income, expenses, desires leads to wealth. The correct handling of money will be discussed below in eight secrets of money management.

1. Save more than 10% of all your income

Every person is required to save at least ten percent of all income received. The sooner people start saving, the faster they will become rich.

Important:

1. 1. You need to save from all income: salary, investments, gifts.
   2. You should save at least 10% of your income. If possible, you need to increase the percentage of savings from your income.
   3. Starting your savings with small amounts, in the future it will be easier to save from large incomes.
   4. Do not under any circumstances spend your savings.

Despite the simplicity of the advice, those who have been using this method for more than 10 years are already quite rich.

2. Income must exceed expenses

If a person does not monitor his expenses, then they will very quickly begin to prevail over income. It doesn’t matter how much money a person receives.

There are many cases where people receive income of a million US dollars, spend one and a half or even two million US dollars. Thus, these people drive themselves into a loss by receiving loans or installments that they cannot pay off in the end.

How more money, the more difficult it is to control them and the likelihood of expenses prevailing over income increases. Always, and control your capital!

3. Get rid of all debts

The sooner everyone is free from debt, the faster the path to wealth will pass. Debts tend to “drive” those who have them into even greater “ debt trap" This is why you should get rid of all debts as soon as possible.

Debts include: loans, borrowings, mortgages and other debts for which you have to pay additional accrued interest on the loan taken.

4. Become the owner of your own property

Many people buy real estate on credit, but not many manage to pay it off, especially in Russia and the CIS. Therefore, you should not “rush into all seriousness” and take out a mortgage or other loans. Real estate should be purchased depending on the current opportunity.

Eg: if you want to buy three-room apartment, and there is enough money for a one-room apartment, so you need to take a one-room apartment. Becoming an owner studio apartment, you should collect money to buy a two-room and then a three-room apartment.

If you immediately take out a three-room apartment on a mortgage, you should understand:

• • if you take out a mortgage, you will have to overpay at least twice the real cost of the apartment;
  • for missed mortgage payments, fines and penalties are charged;
  • the cost of maintaining it will be higher than for a one-room apartment;
  • and most importantly, the apartment belongs to the bank, not you, until the mortgage is paid off.

The risks when buying real estate on credit are too high. This is why rich people never buy real estate on credit.

5. Money must work

Having a certain amount of money, they should be forced to work. After all, money is intended to pay for work and goods/services. If money works, it will multiply many times faster, bringing additional profit to its owners.

Of course, you can not force the money to work, but simply keep it “under your pillow,” but in this way it will slowly increase.

6. Invest in reliable projects with guarantees

Investing is an important way to put your money to work. But it should be understood that investments are a risky activity for those who do not know and people without experience and financial literacy. If a person is financially literate, understands the risks and requires a guarantee, his investment will be reliable.

That's why:

Learn from everyone, don't imitate anyone!

8. Caring for a comfortable old age

Understanding all the above rules for achieving wealth, you should take care of your future and your old age. If you start taking care of saving for old age at a young age, then in old age there will be no worries about small pensions or high retirement age and other problems of pensioners.

You can take care of your comfortable old age by:

1. 1. Endowment life insurance.
   2. Accumulative pension insurance.
   3. Not government pension funds.
   4. Purchase valuable papers and holding them.
   5. Bank deposits.
   6. Purchasing precious metals.
   7. Buying a property.

You should not live “here and now”; you need to think about your future and descendants. Having taken care of your future in your youth, in old age you will be able to fulfill all your unfulfilled dreams using your savings. Instead of worrying about a meager pension.

Conclusion

Learn to manage your capital, income and expenses right now, in the end the results will not keep you waiting and will bring huge fortune. Managing, accounting and planning your money is the hardest and most boring job that few people do. Those who have learned the secrets of personal finance management will definitely achieve success and receive enormous wealth.

This concludes our article on the secrets of personal finance management. We wish everyone financial literacy and success!

Runes are known as the ancient writing of the Germans. The runic sign is a powerful mystical symbol that can awaken both sacred and natural forces. Therefore, in ancient times, runes were used in magical practice. Talismans, healing amulets and protective amulets that bring good luck and happiness are made with runes.

An amulet with the Fehu rune (rune of luck and wealth) repeated three times is also used to create material and financial well-being. Installed according to Feng Shui from the front door to the far left corner (well-being corner).

What runes bring good luck?

The combination of runes (runogram) Kenaz - Fehu - Vunyo attracts good luck:

1. Kenaz- gives good luck and reveals, supports new beginnings, helps to find the right direction and realize what is planned;
2. Fehu- helps to acquire wealth and maintain what has been acquired;
3. Vunyo- promises the fulfillment of plans, helps maintain well-being and gives joy and pleasure from accomplishments.

A runogram is a formula that consists of three, four or more runes of directed action. When compiling a runogram, signs of a certain location are used. Her first sign represents the very result that you want to achieve. And the last one should be the final result that you achieve.

The rune of luck and happiness - runic script Ansuz - Uruz - Yaro - Ansuz (formula AUJA), in the amulet attracts good luck and happiness. Runes for luck and money - a combination of runes: Fehu - Inguz - Odal - this is one of the ways to attract luck and money.

Money runes should be imagined mentally in water and then drunk. Runes can also be depicted in oil (essential) on the body, drawn on a wallet or paper, scratched on a card (bank card) or a candle, etc. – wherever you please. Runes for luck and wealth: Gebo-Fehu-Perta-Odal - this combination of runes promotes good luck in obtaining wealth.

The rune of wealth is the main rune for attracting money. It brings wealth and helps to acquire material well-being. In order for all the runes to work, and also to attract money, you should concentrate and visualize your money desire. In addition, if you, using the runes, want to find out something, then you must be confident in your actions and your intention must be strong, and then the runes will become a mirror of your inner world.