Life is much easier if you have good financial skills. The consequences of poor money handling go beyond constant waiver and debt and also affect your creditworthiness. This in turn affects your options for taking out bank loans and, in some cases, your chances of getting an apartment.

As soon as you are faced with a big purchase decision, do not immediately assume that you can afford it. Make yourself smart beforehand whether it can really be financed. This means that based on your budget and the balance in your checking and savings accounts, you decide whether you can afford a purchase or not.

Remember: just because the money is there doesn’t mean that you should make the purchase. Take into account your open bills, fixed costs, and other expenses that regularly say “bye!” To your account.

Manage your Money Better

Budget control gives you a clear view of what your current budget actually enables. This makes it easier to plan exactly when you can best afford the vacation, the car, the new laptop. Your budget overview may seem useless at first when you create it. It is therefore very important that you document your expenses properly and regularly.

Give yourself a limit on non-budgeted expenses

A critical part of your budget is the net income or amount of money that remains after you have deducted your expenses from your income. If you still have money left, you can use it freely, but only up to a certain amount. Before making large purchases, make sure that nothing else is affected. The magic formula here: enjoy everything in moderation!

Track your expenses with eagle eyes

Small purchases here and there add up quickly. Do you always go to the snack bar around the corner during your lunch break? During the week, there is a proud sum that you could significantly reduce with treats you brought with you.

Collect your receipts and don’t just squeeze them into your wallet. Give high-value receipts a special folder or a permanent place.

Pay the lowest price possible. Compare the prices before you invest. You can make the most of your money by comparing prices. Make sure you pay the lowest prices for products and services. Find special discounts, coupon codes, and less expensive options when you can.

Limit your credit card purchases

Credit cards are like bumpy stones on the way to financial freedom. When you run out of cash, you reach for your credit card without thinking about whether you can afford it. Resist the urge to use your credit cards for purchases that you can’t afford, especially for items that you don’t really need.

Save, save, save – or do you invest?

If you deposit money into a savings account every month, you can develop a healthy financial habit. You can even set it up as a standing order so that the money is automatically transferred from your checking account to your savings account. That way you don’t have to keep thinking about it. It is ideal, of course, if you invest this money wisely: either you increase your money through a clever interest rate or you invest in something that pays off differently for you. Of course, this also includes further training: With knowledge, you always open up new opportunities for action. With the right knowledge, there may also be a chance of more sales. So carefully consider when to save and when to invest and make more of your life.

Practice makes the money master

In the beginning, you may find it difficult to change your financial habit. Of course, it takes perseverance and a healthy relationship with your hard-earned money. Become aware of your beliefs about money and whether you are satisfied with the way it is currently going. What did you learn about money from your parents and how does that affect you today? If you reflect on your current situation at the beginning of each change, you will achieve results faster. Have fun with implementation!

Don’t take out a loan for luxury expenses. Loans are tempting especially when there are so many offers online like Save loans for emergency expenses. Taking out loans should always be your last option. Remember that loans are to be paid monthly and so it should be dealt with smartly.