Virtues for successful money management

Whether politicians and managers learn from their mistakes, you have not in the hand. But you can even draw negative consequences in the field of business and finance consequences for your personal use of money. Here are 5 important pecuniary virtues for everyone:

1. Systematics

Negative example: In the autumn of 2011, Germany’s citizens again marveled at the – now completely nationalized – scandal bank Hypo Real Estate (HRE). € 55 billion (!) Was wrongly recorded in the HRE balance sheet because the bankers had confused “plus” and “minus”.

simplify advice: Even if you are one of those who love creative chaos – in money matters only helps order. Test yourself: Could you find the documents of your insurances right away? The bills for the devices that still have warranty? Your landline and mobile phone contract? Electricity bill, tax bill, loan agreements? Do you know the additional benefits of your health insurance, the amount of your current loan for the apartment? Do you know if all debits from your account are correct?

Create several folders (invoices, taxes, insurances, investments, real estate) for your financial documents and a separate storage basket, the contents of which you put in the corresponding folders once a week. Note on invoices when and how you paid them (bank transfer, Paypal, debit, etc.). If you pay a lot “with plastic”: make a note of it each time you use your credit or debit card and compare the list of bank statements.

2. Honesty

Negative example: Bernard Madoff was arrested in 2008 after years of cheating thousands of investors for a total of around $ 65 billion using a complex system.

simplify-advice: Many people are not being cheated on by money but by themselves. Expect from yourself the same honesty that you demand from others. Do not cheat yourself with too optimistic expectations regarding your income development (“Sure, I’ll get the full bonus again this year”). Do not close your eyes to your actual cash requirements (“The devices will do it for a few more years”).

3. Curiosity

Negative example: When the debacle of the Bayerische Landesbank was examined, it became apparent, among other things, that the Board of Supervisors, as the board of supervisors, had not paid enough attention to the risk of speculative transactions.

Simplify advice: Forget the saying: “I have no idea.” Instead, say: “I want to know more about that.” Do not skip the business section of your newspaper, but read an article every day, the headline addresses you spontaneously – for example because a friend of yours works for the company in question. Do not buy a money or insurance product that you did not understand. Ask in conversation with your bank adviser or insurance agent – z. For example, why exactly this insurance with this level of benefit is recommended to you. Summarize what you said in your own words and ask your counterpart for a confirmation. Never sign alone and spontaneously, always ask your partner first.

4. Discipline

Negative example: Not only Greece, but also many other European countries have let the budget discipline drag on for many years and even in good economic times do not reduce debt.

simplify advice: Keep control over your spending – even though that’s more difficult than ever in the age of online shopping. Do you often spontaneously access “bargains” on the internet? Get used to dealing with something else for 10 minutes. Only if you are still convinced of your purchase wish, then you access. Even better, wait not just 10 minutes, but a whole month.

Many merchants offer free shipping from a certain amount. Do not be tempted to put more in your virtual shopping cart than you originally intended – in the end you will not save anything! Enter your maximum bid on Ebay and be surprised by the outcome of the auction. This will prevent you from being caught by the auction fever and still rising, even though you did not want to spend that much.