A human being strives for new knowledge during all his life. So, first we all learn to walk, talk, write, read. Then we get school and profile education, develop in our career and master different skills. But there are questions that can only be answered on your own, and financial literacy is one of them. The question of how to quickly and safely manage finances torments not only entrepreneurs, but also ordinary people who want to correctly distribute their savings, and in general, treat money rationally. In addition, it is important to know how to protect your account from cyber and physical fraudsters and make secure payments.
WestStein service experts know firsthand what conscious financial management is, so they shared a few tips with the audience.
Why is it necessary to open a current account for free?
Before delving into financial literacy, you need to define its goals. So, if the consumer rationally approaches the solution of economic problems, then he spends less, makes the necessary purchases more efficiently and saves enough. At the same time, the achievement of goals becomes more successful, and, of course, the risk of crisis situations is minimized.
In many of these aspects, it helps to open a checking account online. This opportunity provided by financial company WestStein has a beneficial effect on consumption, as the client is able to track all transactions and regularly review them. In addition, it is possible to open an account online without additional paperwork and completely confidential, as the WestStein virtual card will not be linked to the main bank account. In addition, when using our card, the consumer spends only the funds that he put on the card, there is no credit share, as with an overdraft. This makes it possible to provide our prepaid card even to children, which also has a positive effect on the family budget.
Now let’s move on to the financial literacy tips themselves.
- First, do an analysis of your relationship to finances. You should be extremely honest with yourself and not shift the blame on low earnings or excessive spending. Sometimes it is enough to slightly correct the perception, and not to look for additional work to satisfy all needs. The usual phrases will help in this matter: what is money for me, how I perceive it. Try to answer them.
- Second, learn how to plan. Gradually plan expenses for a certain period: a week, a month, a quarter, six months, a year. It is important here to develop a strategy and be specific, do not deviate from the intended course and then you can really quickly implement everything that you wanted.
- Third, control operations through budgeting. Make yourself a scheme of expenses, limits, as well as other necessary categories and try to fit into the outlined framework. Adjust your notes according to situations, but don’t neglect your own rules.
- Fourth, create a financial cushion, that is, open a savings account. It is worth highlighting separately the accounting for emergency situations – do not plan the budget “back to back”, let there always be a small amount of savings for an emergency.
- Fifth, optimize your spending by following the 50-30-20 rule. This principle says that 50 percent of earnings must be spent on mandatory needs, 30% on optional and irregular needs, and the remaining 20% should be set aside. Try to follow these rules, as well as look for new ways to earn money.
Of course, this list can go on and on, but the main aspects have already been mentioned. Experts also recommend abandoning impulsive purchases and approaching shopping with a “cold head”. So, it is advised not to go shopping immediately after receiving a salary, and follow the systems of discounts, promotions, as well as constantly read the reviews of other consumers and monitor different stores.
How to make secure online purchases?
To achieve this goal, it is desirable to have a WestStein virtual card. With it, everyone will be able to make purchases in a virtual environment and track them in a convenient and understandable mobile application.
Its irrefutable advantage is the Mastercard 3D Secure security system. Thus, attackers will not get the opportunity to appropriate your finances, and online shopping will become even more enjoyable.
The WestStein service is aimed at optimizing financial processes for consumers. We strive to provide our clients with only the best, which is why consulting and customer service is available to everyone. Convince yourself of the high quality of our services today!