Personal finance. Effective management

11/ 11/ 2021

Listen to online Stop   Many people face a situation where their income has been steadily rising for a long time, but it is not possible to make any savings. Often the cause of such situations is actually hidden by the individual, who ignores the rules of managing their own finances and does not adhere to financial discipline. Thus, financial management does not literally mean money management. Rather, it is the process of managing all the resources and processes that lead to the movement of money. Therefore, on November 10, 2021, at the EBA Odesa Personal and Corporate Efficiency Studio, participants discussed the basics of financial well-being together with Tatiana Kernos, financial advisor, negotiator and specialist in effective business management. In particular, we talked about the audit of personal finances and the types of financial thinking (habits) that characterize areas of financial security. For example, in the so-called red zone your expenses and debts exceed incomes, in the yellow zone expenses are equal to incomes, and in green and blue — incomes considerably exceed expenses and there is an accumulation. However, knowing and changing the rules of your finances can always help you move to a higher level of income and expense planning skills, analysis and understanding of cash flow structure, financial goals, financial cushion formation, new asset creation strategy, and more. If you want to develop your financial intelligence and move to a higher level in your relations with finance, you should follow these rules of conduct, for example: Keep track of your expenses and income; Develop the habit of saving money, starting with 5% per month, and then regularly increase the percentage of savings; Deal with assets and liabilities in your life; Consider insurance as a way to reduce costs, etc; Explore available investment tools and start using them. We believe that sound financial management always contributes to success. After all, as Dave Ramsey, the author of the book ‘’Show Me Money’’, said, the essence of financial well-being is not in buying different things, but in learning to spend less on life than you earn, and to invest the rest. So we truly thank Ms. Kernos for helpful tips on managing your personal finances effectively!

Many people face a situation where their income has been steadily rising for a long time, but it is not possible to make any savings. Often the cause of such situations is actually hidden by the individual, who ignores the rules of managing their own finances and does not adhere to financial discipline. Thus, financial management does not literally mean money management. Rather, it is the process of managing all the resources and processes that lead to the movement of money.

Therefore, on November 10, 2021, at the EBA Odesa Personal and Corporate Efficiency Studio, participants discussed the basics of financial well-being together with Tatiana Kernos, financial advisor, negotiator and specialist in effective business management. In particular, we talked about the audit of personal finances and the types of financial thinking (habits) that characterize areas of financial security. For example, in the so-called “red zone” your expenses and debts exceed incomes, in the “yellow zone” expenses are equal to incomes, and in “green” and “blue” — incomes considerably exceed expenses and there is an accumulation. However, knowing and changing the rules of your finances can always help you move to a higher level of income and expense planning skills, analysis and understanding of cash flow structure, financial goals, financial cushion formation, new asset creation strategy, and more.

If you want to develop your financial intelligence and move to a higher level in your relations with finance, you should follow these rules of conduct, for example:

• Keep track of your expenses and income;
• Develop the habit of saving money, starting with 5% per month, and then regularly increase the percentage of savings;
• Deal with assets and liabilities in your life;
• Consider insurance as a way to reduce costs, etc;
• Explore available investment tools and start using them.

We believe that sound financial management always contributes to success. After all, as Dave Ramsey, the author of the book ‘’Show Me Money’’, said, the essence of financial well-being is not in buying different things, but in learning to spend less on life than you earn, and to invest the rest. So we truly thank Ms. Kernos for helpful tips on managing your personal finances effectively!