7 Habits to Improve Personal Finance

Habits that you run every day will determine your future. No exception in financial condition. Try to observe your habits and how to manage money. If you are facing situation where you cannot enjoy your regular monthly income, having deficits in the end of each month, it's time for introspection.

Find out the cause of your ‘messy’ financial condition. You probably do not run a good financial habit. There are seven good financial habits of personal finance that could make you a positive person.

1. Saving.
Only by saving, your life can be more peaceful. You will be comfortable because your future spending is already on the savings.

2. Smart shopping.
You are aware of and had the habit of avoiding excessive spending. You simply shop according to your needs and budget. That way, you can save more so that there is enough excess money to invest.

3. Record all transaction.
This is a simple method that can be applied to anyone. The goal is in order to more easily control your spending. You can see more details of each financial turnaround. But do not just record it. Make this note as a reference to make changes and improve the bad financial planning.

4. Avoid debt.
Debt, especially consumer debt, is very high interest and burdensome. Credit card interest that you frequently use to shopping, for example three percent per month or 36 percent a year, is higher than deposits or even higher than capital market investment. Debt must be controlled to achieve good financial planning.

5. Controlling expenses.
Various ways can be done by keeping track of spending. For example, using the 'envelope system' that can help you limit spending and more disciplined. With the envelope system, you are "forced" to use funds already budgeted through the envelope system.

6. Maintain the financial security of families.
It can be done by applying the purchase of insurance such as life insurance and health insurance. Life insurance serves to protect families from losing their living source of income from a person who becomes a mainstay of the family when he died.

7. Investing.
There are many options to invest. You could buy precious gold metals, saving money on deposit, buy mutual funds and stocks. Each of investment tools has various advantages and disadvantages, and risks, so depending on your profile as an investor.

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