Former banker, financial expert, and author of books and blogs Marcin Iwuć has refined the famous 7 baby steps proposed by Dave Ramsey. Both financial experts suggest starting financial management by creating and strictly adhering to a financial plan and having
invoice financing. The template is universal and simple:
Understand how much you really earn and spend. Create a budget and strictly adhere to it each month. Save the first $2,000. Start paying off all debts using the snowball method (from the smallest debt to the largest). Start saving money to build a financial buffer. It should be at least 15% of your monthly income. These steps should be followed sequentially, not all at once, to avoid the risk of breaking them too quickly. Only after forming a financial buffer can you move on to things like investments, saving for future retirement, buying a home, and children’s education. Following these five steps one by one will make it much easier to deal with global financial challenges. To go through these five steps, you need to adhere to basic
personal finance management rules:
Always spend less than you earn. Get rid of debts as quickly as possible, and don’t see a credit card as an instant solution for impulsive purchases. Plan and adhere to a budget consistently, even if your income is unstable. If you can’t plan a monthly budget, start with planning weekly income and expenses. But money must be under your control; otherwise, you’ll never know why you work so hard without seeing results.
