How To Build A Healthy Financial Situation
I know, I know, only when I hear the word ” saving ” and you already feel your ears scratched. Unfortunately, people tend to spend way too much!
I’m glad, but I’ll be ruthless and I’ll tell you straight in the face that without the ability to save money, you lost the fight from the start. You will never reach a healthy financial situation.
The constant saving, month by month, is not miraculously achieved, but is the result of a process of planning, budgeting and keeping track of the money that comes in and out of your cards.
Learn About Finance And The History Of Finance, Respectively Its Cycles
I don’t know how to put it another way, but I just have to! After all, it is not at all useful to save money if you do not know what to do with them, respectively in what to invest them.
You don’t have to go into detail, but you should know what financial instruments are currently available on the market, how they work and what impact they have on your personal situation.
Will it help me predict the next crisis?
Of course not, but you will definitely know how to react in such a situation.
Learn About Taxes
I admit that for me this topic was the most boring and annoying, but I still ended up being a tax master.
Once you know what you could do with the money you save, you need to know exactly what taxes apply to your various investment vehicles. This will help you make the best investment decision because taxes as well as commissions can greatly erode your profits.
I admit that taxes are the least fun to study, especially for Europeans because each country has its own tax system and as soon as you go abroad, things get complicated. If, for example, you buy a bond, stock, ETF, fund, etc. from abroad, you should know how you are taxed as a foreign investor for the country where the financial instrument is domiciled. Here, agreements between countries play an essential role, as well as juggling scholarships to pass tax heavens.
Learn How To Detect Financial Spikes
Sometimes financial pitfalls are not so easy to spot because they take many forms . Often these financial pitfalls come from people or institutions that our intuition tells us we should trust.
These money-eating gremlins (your money!) Are extremely experienced and well trained in the art of concealment. They will throw in some golden phrases like “you will take advantage of the power of compound interest”, “you will have a higher pension”, “you will get higher returns than bank deposits” etc. to reinforce the idea that they know what they are talking about, doing- make you feel comfortable following their advice.
As I said, a financial stake can come both from a large institution, but unfortunately also from individuals, ” financial consultants ” or personal finance bloggers. It is a sensitive subject…