The increasing inflation all over the world has made it essential for one to learn about daily life finances. Here are 5 money numbers Angelo has shared that are a must know in order to live prosperously.
1. Keep an account of your cash inflow
According to the CEO of Smart Women Society, the basic step to rule over your finances is to realize where you stand-know your income- Earning from one place is not ideal looking at the economical instability in the world. It is important to have more than one source for inflow of cash.
This inflow can be increased by the profit received from one’s investment, either in the stock market or a cottage business, the interest received from bonds and debentures and every other way that can help in cash flow increment. Jot down your monthly proceeds,take an average of your earnings, and look for more income streams if its practical; relying on a single source of income is “risky” she said.
2. Stay Vigilant About Your Outflows
Téa says that the second figure is to look into your needs and wants. She defines needs as the “money spent each month to live, such as housing, bills, groceries and transport,” and wants are unbounded, be it your make-up, attires, bags, snack, embellishments for the home or lavish gifts for loved ones.
The easiest and authentic way to know about your outflows is to either write down your spending of the last two months, or if you totally live on bank cards, then get your statements printed; highlighting all your luxuries and essentials differently. Then sorting out and cutting off the use of products that are unnecessary, giving a negative impact on your savings.
3. List Down Your Liabilities
Being an honest and a responsible person is a basic human ethic which is applied in every aspect of life, be it your relationship or your financial dealings. Knowing the amount of debts yet to be paid is as important as it is to breathe, because how can a person live respectfully if he ignores the cash he has to return to others. Hence why, paying off your interest, debts and due dates is an obligation.
4. Your Reserves
Rainy days come without a siren, having savings and investments helps one live stability without a mental strain. There’s money you can put up in back, opening a savings account, there are investment agencies offering shares in bonds with high interest rates, the stock market can act as a fruitful reserve if understood, or you can also invest in suitable asset classes.
'Assets are the things that you own, having a positive economic value. Your asset equity refers to the value of what you own in your assets.' States the financial advisor.
5.What is Your Net-Worth?
Lastly, Téa said “Use your net worth to track your progress from year to year, and hopefully see it grow over time”, means that, using the accounting equation(Asset-Liability=Capital) know what you have and what you own, realizing how successful have you been throughout the year.