What is Personal Financial Performance? The ability to manage your income in such a way as to provide yourself with everything you need, make large purchases and at the same time increase your savings. You can learn this not only through your own trial and error. Here are five healthy financial habits.

Control income and expenses

A successful financial strategy is impossible without careful consideration of income and expenses. It is important to clearly understand how much you get (including additional sources of income), how much you spend and for what. You can create your own budget in one of the free or paid mobile apps, but to get rid of unnecessary expenses, you have to do some planning. American life coach and millionaire Tony Robbins advises buying from lists. “Be sure to take your shopping list with you. And a limited amount of cash. This is the best financial habit that preserves wealth, ”he says. Just as carefully Robbins recommends approaching large purchases, not spending all the available money on them: “it’s stupid to buy a car for 10 thousand dollars with 10 thousand dollars in your pocket”, therefore “it is better to choose a model that costs two or three times less this amount «.

Don’t chase luxury

A smartphone of the latest model on credit, branded shoes bought with the last money, and a status car that is very expensive to maintain — many of us live beyond our means, constantly purchasing luxury goods. At the same time, really rich people often behave very differently. American writer Thomas Corley, who studied the habits of successful people for several years, found that 67% of the rich live frugally, trying to shop at a bargain price. One of the striking examples is the founder of the social network Facebook, Mark Zuckerberg, who occupies the eighth line of the Forbes list of the richest people in the world and at the same time leads a rather modest lifestyle. His casual clothes are simple T-shirt and jeans, and the businessman celebrated his wedding with his wife Priscilla Chan in the backyard of the house.

Save money

According to a study by Visa and Ipsos, 34% of Russians surveyed have no savings at all. But savings are stability, confidence in the future, the ability to survive a difficult situation and not get into debt on occasion. Moreover, you need to save money regularly and systematically, and not from time to time. There are several theories about exactly how to do this. For example, according to one of them, the optimal ratio is «50/20/30». This is when 50% of your earnings are all basic expenses (housing, transport, food), 20% are savings, and 30% are entertainment, such as shopping, restaurants and movies. However, Bill Gates, the co-founder of Microsoft and the second-largest person on the planet, believes that the main thing is to save at least 10%. In an interview, he said: “Save at least 10% of your income every month. That is, create a financial cushion. My company has it — in a difficult situation we will be able to pay salaries to employees throughout the year without using loans. «

Set long-term goals

It will be much easier to plan and procrastinate if you clearly understand why. One of the keys to success is to set long-term goals, and the more specific they are, the better. That is, not just «saving money», but «saving 30 thousand for a vacation in Brazil every month for six months.» After the goal is set, it is important to focus on it and go towards its implementation. The importance of setting goals for financial success was discussed, for example, by the American oil tycoon Paul Getty. In his book How to Get Rich, he wrote about the «billionaire mentality.» According to Getty, it is “a state of mind in which you concentrate all your knowledge, all your skills, all your skills on achieving a goal. This is what will change you. «

Invest

There are investments for long-term financial purposes. They allow savings to work, not to lose on inflation and increase capital. One of the largest investors in the world, Warren Buffett, gives this advice: “Never be dependent on a single source of income. Invest to create a second source. » Princess Gloria von Thurn y Taxis, from one of the wealthiest families in Europe, invests in ETFs: «It is difficult for a private investor to outrun the index, so it is better to follow the index.» If you’re not yet in tune with the princess, it’s time to start forming good habits.

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