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Unfortunately, financial education is not the strong point of Romanians, much less of young people, at the beginning of the road. Do you think that the efficient management of personal finances is complicated and necessary only for those who have a lot of money or their own business? You are wrong and you have to lose if you do not learn to have a fair and balanced relationship with your money.

To help you get started, we’ve made a list of the 5 wisest financial tips to better understand how you can have a comfortable and prosperous life.

1. Learn to control yourself and be patient

If you haven’t learned this since you were little, learn as soon as possible. Giving up the satisfaction of an immediate desire for a greater reward later is very helpful for your budget. Give up shopping on credit and wait until you raise the necessary money. This also reduces the risk of buying things you don’t really need. If you like a pair of jeans and you are tempted to pay for it with your credit card, give up. Learning to save and live as much as you earn is the first step to prosperity.

2. Take control of your financial future

If you do not learn to manage your budget, you will find someone else without it – a financial consultant or a bank where you have loans and you will certainly not have anything to gain. Neither is your parents’ advice to buy “a house of your own”, although offered with good indents, in your case it can be a bad idea. By understanding how money and micro-economy work, you will be able to make money work for you!

3. Find out where your money is going

After reading about personal finances, you realized that you need to spend less than your income to live in peace. To do this, learn to keep a budget of income and expenses . You can do it on your computer with a simple excel or with the help of mobile applications. Write down what expenses you have and see where you can “cut” so that you can make savings. For example, you can pay a lower rent in a smaller apartment, thus saving to buy your own home. Read more about your spending budget and start keeping one today.

Create an emergency fund

One of the laws of personal finance says to pay yourself first. Thus, before paying the phone bill or maintenance, first set aside an amount for emergencies. You create a savings fund for unforeseen situations. This keeps you away from financial problems and helps you sleep better at night. In addition, it will become a habit to save, so you will end up with more than money for emergencies. You will allocate budgets for a vacation or a new car.

5. Protect your money

Even if at the beginning you do not have too many savings, look for the best solutions for saving and investing. If at first a savings account seems satisfactory because you keep money safe at the bank, in the long run it is not a good solution, especially now when the interest on deposits is almost zero. If you are not careful, the bank fees may even exceed the interest. Read more about investments , look for the highest possible returns, ideally over 10% per year and pay attention to the taxes you have to pay for your income. The more money you have, the more you have to be careful how you keep them.