STONES of PHILLY

1. You have savings

Under your mattress or in a savings account, you have an amount equal to your income for at least three months. These funds will be needed in case of reduction at work, injury and other unpleasant incidents, because of which you may lose a permanent source of income. Within three months you will be able to pay utility bills, rent an apartment, buy groceries and generally live as you used to with money from a piggy bank.

2. You save some money from every paycheck

If you replenish savings from each salary, this speaks of two good things at once. First: you do not make ends meet and you can afford to defer part of the income. Second: your accumulations increase monthly.

3. You record expenses after each purchase

The saying “Money loves the bill” did not arise from scratch, finances do not tolerate negligence. You record all expenses honestly , even if they demonstrate your budgeting mistakes. This helps to analyze what expenses could have been avoided and to adjust expenses for the rest of the month.

4. You have several wallets

You do not rely on memory and circumstances in such important matters as finance. Therefore, money for everyday needs is on the card, in case of force majeure – on a savings account, for large purposes like an apartment, car or vacation – on deposit.

However, funds can also be distributed in paper envelopes – it is important that there is no risk of accidentally spending savings allocated for other purposes.

5. You know how to save

You know many ways to  save money on everyday purchases. For example, you take large packages to reduce the price per unit of goods, do not go to the supermarket on an empty stomach and know all the tricks of merchandisers that push you to rash purchases.

6. You Avoid Waste

There are several simple ways to throw money away : buying bags at checkouts in supermarkets, takeaway coffee, and so on. But you are savvy in this matter and clearly know what expenses can be easily avoided.

7. You make a shopping list

The easiest way to avoid unnecessary spending is to understand in advance and with a sober head what you need to buy.

8. You plan a budget for a month and a year

A personal financial plan makes your relationship with money simple and straightforward. You know what expenses are inevitable and how much money is left for pleasure, you predict large expenses and you can start saving money on them in advance. This allows you to avoid the “swing”, when your pocket is empty or thick, and to provide yourself with everything you need.

9. You are not looking for a trifle in your pockets two days before your salary

You don’t have situations when in the last days before your paycheck you have nothing to buy even bread and milk. There can be two reasons: either you masterfully plan your budget, or you earn more than you spend.

10. You pay utility bills, taxes, fines on time

Penalties are an extremely unpleasant financial punishment for forgetfulness and indiscipline. But it can be easily avoided if all bills are paid on time. You know about this and do not allow misfires.

11. You have financial goals and a plan to achieve them.

You save for vacation, for a car or for a controlling stake in an oil and gas company. At the same time, you know exactly how much money you will need , taking into account inflation, set a realistic deadline for achieving the goal and save the amount on a monthly basis according to the savings schedule. This approach indicates that you will succeed.

12. You are guided by prices

You know how much your usual products, household chemicals and other everyday goods cost. Therefore, the hand will not reach for canned food “for the promotion”, because you remember that in the neighboring hypermarket they are half the price at a constant price. This helps you to choose the best deals from the stores and not spend too much.

13. You use apps that help you save money

It is foolish to ignore modern developments if they ease your financial burden. There are various apps that track promotions and compare prices for items in different stores. And you don’t even have to get off the couch for such financial analytics.

14. You do not borrow from friends, relatives, acquaintances

Living within your means is one of the main principles of good money management. Accordingly, if your income is not enough and you have to ask someone to participate in your life financially, albeit with a return, then something in your financial planning went wrong.

15. You do not take consumer loans for things for which you can save

Even if you are promised a loan at extremely low interest rates, most likely, insurance is included in it, additional warranty service of the goods, or something else that will make you overpay. At the same time, many purchases, such as a new phone or game console, are not vital – you can be patient and save a little.

16. You can count

Most likely, the school algebra course has never come in handy for you, but the knowledge gained in mathematics lessons is needed every day. The simplest calculations help to understand how it is more profitable to buy goods – with a card or with a promotion, whether the cost of travel does not exceed the benefits of discounts and whether to issue a TD bank Routing Number with a cashback if you pay 1 thousand dollars a year for it, and return only 50 dollars to month.

17. You have a plan to increase your income

Even if you get enough to live without saving, being content with that income is unproductive. Therefore, you are looking for ways to become a higher-paid specialist: you constantly study, make useful connections, and participate in promising projects. In addition, you can see in which direction you should grow in order to increase income.

18. Are you interested in investing

Even if you do not yet have an amount that could be profitably invested , you are interested in deposits, stocks, investments and other ways to make money work. This is the right approach, which in the future will help at least not to lose some of the savings due to inflation.