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Financial planning

It has been almost a month since you set your New Year’s resolutions, but there is still plenty you can do to make those goals a reality. 

One of the main goals for 2021 is definitely to learn how to plan your budget. Financial planning issues are becoming more popular because the stability of material life is an important part of our life. How to learn to plan your financial life?

If you want to borrow, make sure you really need it

Borrowing is one of the most popular ways to get money if you want to buy a product or service right away, but do not have the money. There are many unforeseen situations in our daily lives that require urgent solutions or loan. According to statistics - the more loans, the more difficult to repay. It is necessary to make numerous payments to several credit institutions...

Before signing the loan agreement, read terms. Find out what will happen in case of late payment, because we can never predict the financial situation in the coming months.

Find ways you can cut your spending

If your expenses are so high that you cannot save as much as you would like, it might be time to cut back. Identify nonessentials that you can spend less on, such as entertainment and dining out. 

Cycle or walk to work. We know many of you probably have long train or car commutes, but 5 km is still do-able on a bike, right? And if you’re a little on the lazy side, invest in an electric bike to help you up those hills in the morning. Ditching the train or car for a bike is a serious money saver; plus, you’re getting fitter at the same time! 

Buy used, refurbished or older things

Most people enjoy the shine of a new thing, but buying used items will always offer you a discount. When you want to buy a new pair of shoes, consider that last year’s model might be cheaper. Buying something older (whether it is used or last season's) will always help your budget, and this is especially true in the realm of seasonal consumer goods.

Set your saving goals

One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for - perhaps you are getting married or planning a vacatiom. Then figure out how much money you will need and how long it might take you to save it.

How to set a savings goal: 

  • Name your goal. As experience shows, if you name your goal you will reach it faster. Even if you are just saving for a rainy day, you are more likely to succeed if you have a goal amount in mind.
  • Think about how much you can save each month. Actually it depends on the price of your goal, how much spare cash you have at the end of each month, and how soon you want to reach your goal.