Hi Hive Lovers
Everyone has financial problems, at least they have experienced it or will experience it.
If you are not able to manage your finances, then you will always have problems with it. Therefore, as a first step, you must know the actual amount of your assets. That is by calculating your personal net worth.
Even though you are not an economics graduate, you must know and obey the simplest basic financial principles that have been passed down from generation to generation.
What are these things?
1. live according to your ability
Most people live from paycheck to paycheck, maybe including you in it. If your life depends only on salary, whether daily salary, weekly salary or monthly salary, that means you are only one salary away from financial disaster. So, live according to the income you earn and be frugal.
2. Avoid all forms of debt
Most people also live in debt, even for things they don't really need. Don't let yourself be willing to go into debt for the sake of fulfilling your lifestyle and social relationships.
3. Increase savings
Most people also have very little savings, many even have no savings at all.
So save whatever you can set aside for savings or save all the excess money from your living expenses.
4. Start investing
Regularly invest in each of your paychecks, even if only a little and never pay attention to economic conditions. By economists, this strategy is called Dollar Cost Averaging (DCA).
You can delve deeper into the four principles and develop your own. What is very important is your commitment and consistency in implementing these principles.
Do you think there are other points that should be the main principles of finance?
