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Dream and Goal
Dream and Goal
Do you know the difference between a dream and a goal? The difference between a dream and a goal is planning. Your goals should be clear, measurable, achievable, realistic and time-bound.
Record when you want to achieve your goals as month, day, year. Review and reevaluate your goals frequently.
Don't wait to save vacation money in one day, patiently save your money to reach your goal. For example, if your goal is to save $20,000 in 2 years, you need to save $833 per month for 2 years.
After turning dreams into goals and goals into plans, write down and prioritize your short-term and long-term goals.
Budget
Budget
Budget is nothing complicated. Start by writing your income, expenses and savings and analyzing the current situation.
Regardless of the amount of money you have in order to achieve your goals, you should make a budget and use the money in your pocket in the most efficient way.
Write down and plan your income, expenses and savings regularly every month. Save at least 10% of your income every month, set limits for your expenses, plan the next month already.
Stay away from uncontrolled spending, budget over and over to get the budget balanced. Are you spending 200$ and 500$ every month for entertainment? Pay attention to problem areas in your spending. Before you spend, identify the areas you are having trouble with.
Set yourself limits so you don't go over the budget you've prepared. If you can't afford it, try reducing your spending first and then increasing your income. Stick to your plans, don't give up!
Your budget should be realistic and flexible. You can make changes in your budget according to the changing conditions.
Allocate 50% of your income to necessary expenses such as food and household expenses, 30% to social activities and 20% to financial priorities.
Plan for tomorrow. What will your income and expenses be for the next month? Write these down. If you can't afford it, reduce other expenses a little or increase your income.
Expenditures
Expenditures
Expenditures form the most crowded and most flexible part of the budget. The golden rule when spending is to “spend less than you earn each month and write down every expenditure you make”.
The easiest way to keep track of expenses is to create an "spending diary", and write down all expenses, even if they are 50 cents.
Before you spend, consider whether it's a want or a need.
Before you go to the cash register, give yourself 10 seconds and ask: "Is this a want or a need for me? For large purchases go home, think 10 days. What you want to buy is always there, just make sure you want to buy it!
If you have a sudden urge to spend, think about your household items and remember your financial goals.
Luxury consumption is the goods and services that we use to provide greater comfort and satisfaction beyond what is necessary for living.
Keep money aside for 3 times your monthly expenses for emergencies.
Saving and Investment
Saving and Investment
Instead of subtracting expenses from income and allocating the remainder to savings, set aside savings from income and plan the remainder as expenses.
When saving, remember that it's for your goal/dream/freedom.
In order to achieve your wishes and goals, it is important that your savings are regular, not the amount of your savings.
Save at least 10% of your income and at most 25% of your income and do this regularly every month.
Keep your savings in a separate place. Start saving today, not tomorrow.
Unless you invest your money, it's like a basketball that keeps bouncing where it is. If you don't want your money to lose value where it stands, invest your money in an investment vehicle. Consult an expert for this.
Start by recognizing the investment character. Don't forget your risk outlook, age, and location. Don't keep all your money in one investment vehicle. Distribute your risk by using different investment instruments as risky, medium risk and risk free.
Don't invest with a friend tip. What suits them may not suit you. Obtaining illegal investment advice. Don't invest in an investment vehicle you don't know. Become a researcher! If possible, consult an expert when investing!
Debts
Debts
Divide your debts into good debt and bad debt.
A correct borrowing to achieve your goals is not bad. As long as you borrow money for things that will increase in value.
If you're going to borrow money, say when you're going to give it back, be true to your word.
Analyze the reason for borrowing. Your debt should be at most 25% of your income.
Make a debt settlement plan. List your debts by interest and start paying with the highest interest. Find an additional job if necessary.
Being a guarantor means being responsible for the entire debt. Think twice before vouching.
When borrowing, take care to take as much debt as you need on a maturity that you can pay. Remember that you are responsible for paying the principal and interest on the loan you take.
As soon as you realize you can't pay off your debt, talk to your bank candidly and request a restructuring.
Debit Card
Debit Card
A debit card is a card that allows you to make payments from money in your bank account.
Why use a debit card? Because by not carrying cash, the risk of losing money or having it stolen is reduced.
With a debit card, you can spend money in your account and see the records of your spending.
You can easily track where and how much you spend with your debit card.
You should not share your card and password with anyone, write your password on the card or keep it written in your wallet.
Credit Card
Credit Card
Credit card is not a loan, it is a payment tool. Don't spend more than your income with your credit card. Do not forget about other installments while spending.
Credit card gives 40 days interest-free money. As long as you pay off your debt by the due date, you will not pay interest.
Pay off all of the term debt on each payment date. After the payment made below the term debt, interest begins to accrue on the remaining debt.
If you pay less than the minimum of the term debt 3 times in a year, your limit will not be increased until you pay off your card debt and your card will be closed for cash withdrawal.
If you can't pay off your debt, try to pay more than the minimum and don't use your card until you can.
If your card is stolen or lost, immediately call the bank's call center. When you find out that the card has been stolen, you are responsible for a portion of the expenses incurred in the 24 hours prior to the notification.
In short-term borrowings, a card can be used to avoid paying credit costs. However, do not forget that after the cash withdrawal, daily interest is charged for the amount you withdraw.
Credit Score
Credit Score
Credit score is a numerical indicator that predicts how regularly individuals will make the payments of the personal loans they have received or will receive from banks and consumer finance companies. (Installation loans, Overdraft Account, credit card)
Credit Rating varies between some values according to countries.
The lower the rating, the higher the risk that one's loans will become problematic in the next 12 months. If the credit score is zero, it indicates that the grade could not be calculated.
Individual credit ratings are generally used by financial institutions when making new credit decisions and limits for customers.
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