These 7 Surprising Money Rules Everyone Should Know, According to a Financial Expert

Financial health is an essential pillar of our general well-being, influencing our ability to meet our essential needs and calmly plan our future. Just as crucial as physical health and personal development, it actively participates in our overall balance. Ensuring good financial health involves prudently managing your resources, planning your expenses and building up savings to deal with unforeseen events.

By following these 7 rules surprising recommendations by financial experts, everyone can improve their money management and get closer to its financial goals.

Spend more to save more

According to consumer finance and budget management expert Andrea Woroch, a low price on a product bad quality can turn out to be a bad deal in the long run. She recommends going for quality, even if it means spending a little more upfront, as this can avoid additional expenses to replace cheap items which deteriorate rapidly. Andrea Woroch also advises buying second-hand branded items to save money on quality products.

Manage your budget with flexibility and progressiveness

In the managing your budget, it is essential to find the right balance between rigor and flexibility. The financial expert, with more than 10,000 followers on Instagram, warns against being too restrictive with your budget. Indeed, although a detailed budget is an essential tool to achieve his financial goals, a budget that is too strict can have counterproductive effects. According to Andréa Woroch, a budget that is too restrictive can lead to exhaustion and make it difficult to stick to the established financial plan. Plus, trying to change all your spending habits overnight can be a big challenge.

Beware of automatic renewals

In our modern, proactive society, it has become incredibly easy to spend money without thinking, thanks in part to to payment methods practices such as automatic renewal. Anne Lester, author of “Your Best Financial Life,” warns of the dangers of these practices: “You can sign up for automatic renewal… or be tempted by a product you saw on Instagram, and in one click, you’ve bought it.” However, these payment facilities may result in unconscious spending and negatively impact our financial situation.

Automate your savings

Savings is an essential pillar to ensure its financial stability long-term. According to Mr. Lester, financial expert, it is highly recommended to automate your savings payments to avoid the temptations of impulsive spending: “Automate everything you can when it comes to saving, so you don’t have to make a conscious decision to do it. If you don’t do this, you risk giving in to the temptation to spend rather than save.“The automation of savings payments makes it possible to set aside a regular amount effortlessly, which helps to strengthen your savings and more easily achieve your financial goals.

Monitor small purchases

When you review your statements of credit card, it’s easy to focus on the big expenses. However, it is equally important to grant special attention small purchases that may go unnoticed. Sara Rathner, personal finance expert at NerdWallet, stresses the importance of closely monitoring small positions on your statements credit card: “Not all fraudulent charges are four-figure purchases. Fraudsters often test your card by making small purchases to check its validity..”

Accounts fit for purpose

For a optimal financial management, It is recommended to have investment accounts tailored to your long-term goals and middle term. According to Elaine King, certified financial planner and founder of Family and Money Matters, it’s a good idea to open an investment account dedicated specifically to medium-term goals. Medium-term goals, such as purchasing of a housefunding studies, The acquisition of an investment property requires a specific investment approach.

Personalized financial management

When it comes to personal finance, it is crucial to understand that there is no universal solution. Each financial situation is unique and evolving, and must be adapted according to your values, your goals and your life situation. Before putting a financial plan in place, it is essential to clearly define what is important to you. Patrick Yono, founder and CEO of Sure Life Financial, recommends taking the time to think about your aspirations: What type of housing do you want? What work-life balance suits you best? What are Your passions and interests? Once your goals clearly defined, you can develop a strategy to generate the necessary income, choose the types appropriate investmentsetc.

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