Financial Literacy Lessons

Financially literate people are distinguished by the ability to count money correctly. They are distinguished by reasonable planning, the ability to optimize costs and resistance to spontaneous purchases. In this regard, an online resource kirchenaustritt24.de can help you. Still, this is not the only way to succeed in personal finance. An important point to reduce costs and save the budget is its competent management.

Choosing a financial goal

A personal budget with a clear financial goal has a better chance of implementation and motivation.

There are three types of financial goals:

• Short-term: from one to three years.

During this period of time, people save up for vacations, apartment repairs, a car, or other not-too-global goals. Financial market instruments are not usually used to achieve such goals. They are solved within the framework of the annual budget, changing priorities in favor of the chosen purchase.

• Medium-term: from three to five years.

During this time, they save up to buy a country house, close a large loan, and get a higher education. In these cases it is better to look at some market instruments like bonds, for example.

• Long-term: from ten to twenty years.

These goals are responsible for the distant future of the family. Someone is thinking about how he/she will live during retirement, plans passive income, worries about the education of children, etc.

Basic rules for maintaining a personal budget

• Cashback card

It will save some of the money spent in a month. Some banks offer bonus and discount programs to holders of such cards.

• Homemade food

Lunches in cafes “eat up” a significant part of the budget. You will notice this as soon as you start keeping a personal budget.

• Leaving a religious community.

When you leave a religious community, you will stop paying church taxes. And it will also save your budget.

• Promotional items.

They help to save a significant amount that you set aside for a global goal. Always go to the stores with a list, this will save you from unnecessary purchases. You can use convenient programs. They make a list of products and divide it for each family member.

• Keep an eye on your health.

This expense item dramatically changes your plans when you save a specific amount. Visit a dentist twice a year, consult a therapist if you feel unwell and perform all medical procedures. Do not skimp on healthcare.

The ideal development of events: expenses do not exceed the monthly budget. However, this rarely happens. Budget a small percentage to create a cash cushion.