In our daily lives, we all face certain financial worries, sometimes unforeseen, that cause stress and anxiety. To remedy this, you need to put in place an action plan to better manage your finances, which will help you to regain a peace of mind that is priceless! But what is financial success?
What is financial success?
Financial success can be defined as being in control of your finances with a degree of visibility that allows you to achieve your goals, while having the ability to absorb a financial shock without the consequences being too severe. In addition, it should allow you to enjoy your life as you wish. As with all kinds of goals, you need to build a step-by-step plan to get to that point of financial peace.
Obviously, every financial situation is different and you need to be able to pick and choose the right ingredients that you think will help your financial health.
Why is it so important?
Managing your finances well is accessible to everyone and will help you make the most of what you have. In a world of rising electricity and gas prices, unemployment, student loans and property prices, it is time to maximise the use of your finances. Your more informed decisions will then allow you to live a healthier lifestyle and enjoy what life has to offer in the best possible way!
You should also be aware that managing your money is strongly linked to your state of mind. Indeed, when you are not in good shape, it has been proven that financial management is generally poor. For this reason, it is important to create habits that will help you to stop worrying about your money. As it is often said, money does not make you happy, but good money management is essential to achieve a certain serenity.
Having a superapp where you can manage all your finances in one and only place is a great way to reach financial wellness. The Smile Account provides you all the services you need with all the security you expect from a financial app!
How do you achieve financial success?
Now that you know what financial success is, you are probably wondering what it actually consists of. Here are some tips to help you improve your financial routine and make it more healthy and productive!
1. Learn to budget: Set limits! For each category of expenditure (food, entertainment, bills, savings etc.), base your spending on last month and set a maximum amount for each. Obviously, this is not fixed and if you spend more than you planned in one area, don’t hesitate to change the budget for the others.
2. Be prepared for emergencies: Have money set aside if something happens (unemployment, unforeseen extra costs etc.). To do this, set aside a sum of money (more or less) each month to be used only in case of an emergency or unforeseen event. This way, you will not be stressed about possible events you might face.
3. Start your savings plan: It is never too early to start saving. Putting a small amount aside regularly over a long period of time will always help you and is the best way to grow your savings! To make life easier, you can also make this operation automatic. In this case, contact your financial institution directly and they will help you with the process.
4. Reduce your debts: Paying off debts on a modest budget. How do you do this? First of all, calculate exactly how much you owe without putting anything aside, including interest and deadlines. Then you have two options. You can either start by paying off the debts with the highest interest rate or the ones with the lowest interest rate and work your way up or down depending on which method suits you best.
5. Don’t forget the long term: Making money work for you doesn’t happen overnight. It takes time and consistency for your plan to be effective and give you real results. If you stick to this routine, you will see a major difference in the way you manage your finances!
Managing your finances in this way is the best way to achieve the financial success you dream of!