Applying this rule can avoid taking too much financial risk
When it comes to spending money, everyone has their own take on things. There are savers on one side, spenders on the other, and many ways to manage your money in between. Although each of these different personalities has its own advantages and disadvantages, it would be difficult to determine which one is right or wrong.
This is why it’s difficult to list strict rules to follow literally when managing your money. Although it is strongly recommended to avoid over-indebtedness as much as possible, it is also advisable for everyone to establish their own rules. But regardless there will be a universal rule how do you manage your money,
a mistake that should not be made
As the inauguration of Donald Trump’s new term approaches, many Americans are fearful of changes that will affect them personally. That’s why Suze Orman, an American essayist who specializes in financial advice, urges caution. a publication On LinkedIn. A change in administration, the beginning of the year or some other major event at the international or national level is often an occasion for some Do everything to protect or increase your wealth,
But according to experts, this is a mistake which should not be made at all. He believes, “The best financial decision you can make today is not to rush.” Advice that could be applied to Americans at the start of a new era under Trump, but could also become a rule to remember when it comes to money. Don’t make decisions out of fear, worry, or excitement about what might happen, she writes. Making financial decisions based on guesswork is never a good idea. Good idea. Take your time, educate yourself, and focus on fact-based decisions and long-term goals.
What’s the best way to manage our money?
People who have the most difficulty managing their money may be particularly attracted to the methods adopted by those who achieve itIs an amount deducted every month to save them? Do they delimit envelopes by type of expense at the beginning of the month? Do they save the most on each of their expenses? And, most of all, what is the best way to manage your money?
It may well be that the best way to manage your money is to ultimately… have a way to manage your money. A study published in 2021 Journal of Experimental Psychology had revealed that the financial self-control strategies people already use are most effective in reducing their spending. It was also hypothesized that these individual strategies were more effective than expert advice such as financial self-control strategies empirically tested and published. Not surprisingly, these strategies were more effective than no strategy at all.