Dear friends, this material is devoted to such a topic as determining your financial condition. This question deserves the most detailed consideration, because it is the starting point for each of us.
Agree, it is quite reasonable, before moving somewhere, to find out where we are at the moment. This is exactly the situation here. Since you have decided to find a common language with your money and are busy improving your financial condition, then it will be very useful for you to start with where you are at the moment. The word “where” refers to how you are doing with money at the moment and in general.
Now let's go in order. I would like to note right away that here you will not find a method for determining your financial condition, such as some kind of table with different groups, so to speak, or a formula, by looking at which you will immediately enroll yourself in some group of people or the like. This means that here you will not find a universal formula that will give you a ready-made answer. Do you know why? Because such a formula simply does not exist. She's not there. And the reason for this is very simple and banal. All people are different, each is individual in his own way, each has his own conditions in life, each lives in his own region, country, city, etc. Remember the proverb that you can’t measure everyone with the same brush. Here is just a striking example. Sources of information that offer you any systematic approach are at least not objective, because it is impossible to take into account the individuality of each person.
Just like that. All of the above does not claim to be the final truth, but is supported by practical experience. So let's try to go the other way, without tables, formulas and other nonsense.
So let's start from the beginning.
What is this financial condition? Applicable to us and each of you in particular, financial condition is the overall picture of you and your money, this is your financial situation, we can say that this is how much money you have, how much you owe to whom, etc. the most important thing is a complete picture of your finances for a certain period of time (a month, three months, six months, a year).
This question is very personal and deeply subjective. No one except you will assess your financial condition better than you yourself. But! I repeat, do not evaluate in terms of good or bad. This is simply expressing that you either like your money situation or not. If not, then you are upset because your dreams are not coming true.
We don't need emotions in this matter. You must clearly understand what your situation is and how to change it for the better. But emotions will not help you in this matter; they will only distract you.
Now let's move on to the main thing - Evaluate your financial condition in categories - better or worse. That is, your financial condition is either getting worse or better. BUT! A very important point! Improves over what? Compared to your own condition, only the previous period(for example last month or year). It's that simple. This method appeared purely practically, but I assure you, it is very effective. You don’t look up to anyone, you don’t compare yourself to anyone. It is very important! Because there are always those, comparing yourself with whom you will feel like garbage. Never compare yourself to anyone! You have your own life and focus on it.
By observing your financial condition and comparing its development, so to speak, you see the dynamics of changes - income growth, cost reduction, etc. Only in this case will you adequately assess and understand whether you are moving towards your goals or, on the contrary, moving away from them.
But what about the practical part, you ask? How to calculate all this?
Well, if this is your first time on the site, then I recommend studying it, starting with home page. It won't take much time, but there will be a lot of benefits. If you have already visited our resource, then I recommend reviewing the section "Income and expenses". It is accessible and describes in detail how and what to count and even has a real example. You can also look at the section about financial purposes. Come in handy. We also suggest taking our experimental financial condition test and assess your current condition.
There is another rather important point, which we forgot to mention. It lies in the fact that the size of budgets is absolutely not important for determining the financial condition. Budget sizes can only be important in achieving financial goals, and even then not always. Now we are talking about the fact that the financial condition of a person with an income of, say, 2000 monetary units can be much worse than the financial condition of a person earning 2 times less, because the first one can earn a lot, but be hung with loans, for example. All this is said with the aim that, God forbid, you should not be upset if your budget is modest. This shouldn't stop you.
As they say, size is not the main thing, the main thing is skillful use
Good luck and financial well-being!
Incredible facts
Each number has its own meaning, features and vibrations. Numbers have a huge symbolic meaning that can be read in all areas of life. They even affect our finances, our ability to earn money, save it, or give it to charity.
Each number has its own energy, showing what material difficulties await a person throughout his life. Studying and understanding the energy of each number will give you some insight into your own money potential.
To analyze and correctly interpret your financial figure, you must first calculate it. This can be either the number of the day or the number of fate. Both of these numbers can be used for interpretation.
The number of the day is the day of the month on which you were born, and two-digit numbers must be made single-digit by addition. For example, if you were born on the 18th, then your day number is 9.
We obtain the destiny number by adding up all the numbers in the date of birth and bringing them to a single digit number (10/18/1972 = 1+8+1+1+9+7+2=29; 2+9=11; 1+1=2).
Money and date of birth
Financial number 1
Throughout his life, a person with this financial number will be accompanied by material stability. Number 1 is the energy of new beginnings, so it is easiest for such people to start new things. They will succeed in this more often than others.
Such people are not those who accumulate debts, because they know how to wisely manage the funds they earn.
A person with a financial number 1 is often a good leader and is quite successful in accumulating a good amount of money. However, often the relatives or even subordinates around him take advantage of the well-being that these people attract.
Financial number 2
Money number 2 is the most unlucky of all. It does not reflect wealth, since the vibration of this number is giving to others, sharing. As a rule, people with “twos” face completely different problems, so they spend time and energy, first of all, on giving. And then they will think about themselves.
Such people are generous to such an extent that this advantage in certain doses turns into a disadvantage.
Number 2 means a lot of disappointments and delays at all levels, and this is especially true for business and finance. These people's love of luxury can turn into serious debt if things are not kept under control.
Financial number 3
Number 3 is a lucky vibration that makes money easy to earn. However, another feature of this number is that money is both earned and spent, so in this case there is no need to talk about saving and saving.
It is very difficult for “C” people to accumulate any significant amount. Even if such a person at some point in his life is considered financially successful, at any moment he may not have enough money for something, and he can easily get into debt.
However, people with money number 3 also easily get out of debt.
Financial number 4
The bearer of this number is not necessarily destined to be poor, but such people have to work very hard to earn every penny. Number 4 has the energy and vibration of hard work.
Everything that such a person achieves comes to him with great difficulty. Without conscientiousness and self-discipline, people with this money number are destined to live in poverty throughout their lives.
However, if a person is dedicated and hardworking, then he can make a decent savings with the help of investments and his foresight.
Relationship between date of birth and finances
Financial number 5
These people are good at business and will thrive as long as they stay focused, organized and stick to their budget.
Number 5 has a philanthropic bent and, being employers, such people treat their subordinates very well. Such a person also has the belief that money should be given away. A person with a money number 5 is often rewarded by higher powers for his positive attitude towards the world and good deeds.
Financial number 6
6 is the number of abundance, and the energy carrier of this number often inherits money and family wealth, since this number is also associated with gifts and family.
Such a person tends to prosper and succeed in whatever he puts his head and hands to, and he almost never worries about cash flow. The material wealth of such people is usually stable, without extreme fluctuations to a minimum or maximum.
Financial number 7
A number seven person may be prone to financial difficulties due to the vibrational eccentricity of the number 7.
Such people can achieve financial well-being, but this is not all that concerns the monetary side of their lives. This person can make money from ideas that are completely wild at first glance.
Surely many chuckled contemptuously when they read the title of the article. Indeed, the method that we will talk about does not pretend to be true. This is another study by restless scientists from Toronto, but we recommend listening to it. It's not just about the research, but also how it is explained and what roots it has. Do you want to attract more money? Read on - you will learn a few secrets.
What was the research?
The experiment was simple: they invited volunteers, and then photographed them in a completely calm state - when the person did not experience any strong emotions, did nothing. Complete relaxation and static. The experiment is based on the idea that every emotion that happens constantly in our lives is imprinted on the face over time. That is, by facial wrinkles and features, you can easily read a person and his basic life conditions.
What does this affect?
Emotional imprints on your face affect how people perceive you. If you have the emotion of sadness, you attract equally sad listeners and interlocutors. You are unlikely to be trusted to work in a creative company where employees generate new ideas every day. The emotion of anger will alienate people who are looking for a kind, calm, flexible employee, etc. And emotions also create a vicious circle in our lives.
What kind of vicious circle are we talking about?
If you are constantly happy, people will start to treat you positively. There is a greater chance of getting into a high-paying position and concluding a good contract. But make no mistake - this is also not a pill for all ills. The same emotion of anger is clearly associated with achievement. Angry people are not liked by others, but this does not stop them from going over their heads and achieving their goals. Therefore, we question the essence of the experiment and its results. Although we will introduce you to the conclusions.
Conclusions of the experiment
If in a photo in a calm state a person has a relaxed face without obvious signs of stress and negative emotions, we can most likely say that he is doing well in life and is satisfied with his financial condition. Satisfied - this is the key point that scientists from Toronto were silent about. A person may have little money, but he feels happy and self-sufficient. But if sadness, tension, and constant frowning are clearly visible, then scientists suggest thinking that the person’s finances are not going so smoothly.
Do we agree with these conclusions?
It is difficult to agree on a clear relationship between basic emotions and financial situation. We would argue with the conclusions that were drawn from the photographs. Let's look at least at the emotion of joy that is attributed to successful people. In fact, it is a “light”, “carefree” emotion. A person who constantly rejoices lives for today. “Here and now” is the main thing for him. He does not make long-term plans and often forgets about the consequences. And this image does not fit in with a successful businessman.
Other emotions common to successful people
And here everything is interesting too. We have already mentioned anger - this is often a basic thing in people who reach serious heights. Frowning, tension in the lips, wrinkles under the eyes - this does not look like happiness and satisfaction. But at the same time, angry people build companies and earn millions, even billions. Their base helps them get through the competition and quickly resolve matters with partners and clients.
Contempt: where would we be without it?
Another emotion that is often scolded in society, but in vain. She always talks about comparison. A person who compares himself with others also rarely stops at small things. He wants to achieve heights, to prove to others that he must be taken into account. A trace of contempt (a clearly visible asymmetry) can also be a sign that this is a financially successful person. And again, not necessarily.
Why is the study so controversial?
Our opinion: the experiment did not take into account the fact that financial success is a category without clear boundaries. And success and happiness for many people have nothing to do with money. Therefore, people who demonstrate joy, relaxation and positivity do not always have enough money. Among them there are many who are content with little, by your standards, and therefore cannot take themselves as a model.
How is this research useful?
There is also a positive side to the issue. The experiment reminds us that when meeting a person, it is important to convey positive qualities. By being open, happy with life, and determined to achieve good results, you get more. This applies to your dream job, salary increases, and many other points. But constant sadness pushes people away from you, and therefore deprives you of opportunities and money. If you want to succeed, control what you broadcast to the world.
Surely many people, when analyzing their personal finances or family budget, have thought about how to characterize their financial condition. You can mostly hear such assessments as “ordinary”, “average”, “below average”, “unsatisfactory”, “below the poverty line”, etc.
As practice shows, usually people assessing the state of household finances take into account only the level of income, that is, exclusively cash receipts into the personal or family budget. In fact, this approach is fundamentally erroneous, since it characterizes only the level of income, but not the overall financial condition of the family. To determine the financial condition, in a family, as in any enterprise, it is necessary to take into account not only income, but also expenses, or rather, their ratio. We suggest highlighting four main levels of financial condition an individual or family.
Level 1. Financial hole.
The main distinguishing feature of this level is the excess of expenses over income. In other words, if a person or family spends more than they receive, they are in a financial hole. The main distinguishing feature of a financial hole is the following: the presence of debts and, as a rule, their constant increase.
After all, expenses need to be covered with something, and if there is not enough income for this, you have to use borrowed funds. Availability of loans, in turn, increases costs even more, since you have to pay additional bank interest and fees, so people are forced to apply for new loans, and their total debt constantly increases.
Being in a financial hole, a person, as a rule, spends his income before he has time to receive it, that is, on account of his future salary, and as soon as he receives an influx of funds into his personal budget, they immediately go to pay off debts, and then he again forced to borrow.
Level 2. Financial instability.
A state of financial instability means that income is approximately equal to expenses. A person spends as much as he earns. If at the same time he has debts, then they do not accrue, all repayments occur on time. Financial instability, although it is a level above the financial hole, is, in fact, a very precarious state.
The fact is that another important distinguishing feature of this level is the lack of savings and reserves. After all, a person or family spends everything they have earned, and they have nothing left to form reserves and savings. And therefore, the occurrence of any unforeseen situation that requires significant financial expenses will immediately provoke a transition to a lower level - into a financial hole.
Level 3. Financial stability.
The state of financial stability can already be defined as “above average”.
It is characterized by the excess of personal or family income over expenses and, as a consequence of this excess, the presence of savings and reserves. People in a state of financial stability earn more than they spend, so they set aside the unused portion of their income for savings or accumulation of reserves.
Thus, they have the opportunity to make large purchases using their savings, and in case of force majeure they always have a certain “margin of safety”. After using up their savings or reserves, they start accumulating them again. To maintain a state of financial stability, people are forced to work hard; losing a job can mean for them a gradual waste of savings and a transition to a lower level.
Level 4. Financial freedom.
This is the level that everyone strives for, but not everyone manages to achieve it. At this level it is not workers, but investors whose income is several times higher than expenses, and the income of such people is mostly passive. This means that a person does not put as much effort into earning money as, for example, an employee, but still receives income.
Investors receive income from their capital, which they once invested profitably and, if necessary, periodically reinvest and accumulate.
For a person at the level of financial freedom, a simultaneous loss of all income is unlikely, since they are distributed into different investment projects, and even if one of them “burns out,” this will have virtually no effect on the overall level of income.
People who achieve financial freedom tend to remain in this state for the rest of their lives.
Now you can intelligently assess your financial condition.
In conclusion, I would like to emphasize once again that this is very important: The level of financial condition does not depend on the level of income! That is, a person who earns 1 million a month and spends 2 million is still in a financial hole. And a person who receives 100 thousand passive income and spends only 20 thousand of them is in a state of financial freedom. Therefore, in order to achieve financial freedom, it is not so important to earn a lot; it is much more important to properly control expenses and competently manage personal finances.
remember, that a person stops working for money only when money starts working for him.
- an indicator of his position in society. There are currently only four types of this condition. And the following diagram will demonstrate this more clearly:
As you can see from this diagram, there are four main types of financial condition. In the middle is the so-called poverty line, being below which is fraught with big problems in life.
The diagram also shows the paths of transition from one state to another and the main parameters of these states. Let's now look at them in more detail.
Financial pit
Without exaggeration, this is the most problematic condition, characterized by the presence of expenses that are noticeably greater than income, which in itself contributes to the systematic increase in a person’s debts. In this position there are no savings and.
Most often, in this state, people pay their expenses by attracting new loans and advances, which promises a further increase in debt obligations. The only way to get out of here is to control funds, as well as cut costs and increase income.
Financial instability
This is the next financial position below the line. In this case, income and expenses are approximately the same, but, as a rule, there are no savings. There are most likely no investments either. It seems that there is enough money, but if suddenly an unforeseen situation arises, for example, an illness or an accident, then the person is instantly pulled into the previous state. He falls into a financial hole.
To prevent this from happening, you need to approach lending issues wisely and choose profitable offers.
According to numerous financial experts and statistics, in our country this category of people is the most common and makes up about 70 percent.
The name financial instability speaks for itself and characterizes this situation very well.
Financial stability
In this situation, income is greater than expenses, and the following situation arises: cash savings and investments appear. And in the event of any unforeseen situation, he will easily pass the test without incurring debts.
Every year the financial situation of such a person becomes stronger and a fall down is no longer likely.
As practice shows, if a person has crossed the poverty line, then most likely he will not return back!
As for the income of such people, they differ from the previous two categories. If a person below the poverty line receives money for his work, then above this line is already in effect, and for such people it can amount to significant amounts.
Financial independence
Such people work mainly because they like it, and money in this case plays a secondary role for them. In addition to savings, there is capital, which brings the lion's share of income.
If a person has achieved financial freedom, then in 99 percent of cases he will retain this position until the end of his days and can even pass it on to his children by inheritance!
Therefore, a person’s latest financial state is worth striving for. Although, to be honest, it is unrealistic to immediately jump from a financial hole into independence, and this may require many years of hard and correct work. So visit our Tvoya-Life website more often, and we will try to help you with this as much as possible.
