Financial management websites suggest 5 principles to follow. Your financial management method is smarter than most people

There is no magic formula for wise and wise finance, but mainly depends on planning, common sense, determination and mathematics. The financial management website Go Banking Rates lists the following 5 signs, so that everyone can see if they are smarter in financial management than ordinary people? Are you on the right path?

1. Pursuing the highest interest rate

To find the savings account with the best interest rate conditions, you don’t need to spend too much effort. Just search online and you can get all the information you need. Even so, many American consumers are still at an annual rate of return (APY) as low as 0.01%, and they can earn an annual rate of return above 5.0% without taking the initiative.

2. Spending time to book planning, edit budget

Encoding financial planning and monthly budget are the two most important features of wise and rational financial planning. Financial planning should include long-term and short-term goals, from leisure activities, investment goals to major purchases (such as buying a house or car). In contrast, the monthly budget is based on current daily expenses and daily necessities.

3. Far from unnecessary debts

The wise and rational debtors have one thing in common, that is, they will not let themselves fall into powerless debts. The starting point of the road to financial destruction is often to swipe your credit card to buy things you originally couldn't bear.

4. One of the most common methods of cumulative wealth accumulation is to use a certain percentage of income in investment, such as stocks, bonds, mutual funds and real estate. In addition, you can also earn extra income through part-time work and associates, and convert your spare time into a source of wealth.

5. Money is not wasted on things that wise people will not do, including waste of money and accumulated debt. Americans spend an average of 18,000 yuan on non-essentials annually, while consumers spend an average of nearly 3,800 yuan on stimulus shopping, which could have been saved.

Responsible editor: Gu Zihuan