Personal financial efficiency

When we talk about personal financial efficiency we refer to the financial return we get for our time spent working, but also to effective methods of personal financial management.  In other words, financial efficiency is both a result of how we work and of how we spend.

A first premise for a higher personal financial efficiency is developing the ability to keep things in perspective, plan ahead and prioritize. Knowing what you want to achieve will help you choose the best option to get there. That being said, it’s important to take a moment and think about the things we can do to improve our financial status. This article will discuss five broad strategies that may help start you off on your path to higher financial efficiency.

  1. Invest in your career

Whether it’s time or money, investing in your professional development is likely to pay off in the long run. Developing as a professional will help keep you motivated, grant you access to new professional opportunities and help you maintain your financial stability. Identify sources of learning – whether it’s other professionals in your field, new books, research or courses – and think of the best ways to integrate what you’ve learned in your daily work.

  1. Set career goals

Work on setting short, medium and long-term goals for your career, based on your preferences and personal characteristics. Be realistic in choosing your goals, ensure that they are attainable and measurable. Most importantly, review and adapt your goals as needed based on the demands of the job market.

  1. Maintain healthy spending habits

A general rule of thumb is that you should spend less than you earn. However, it’s easy to get excited and spend money on purchases you later regret. A useful distinction to make in this sense is between the things we need and those we want. You may come to realize that a majority of expenses come from things we ‘want’ and not from things we really ‘need’.

Generally, in order to avoid going in unnecessary debt, it’s a good idea to set money aside for the things you need and only afterwards engage in less critical expenses. And, if you have any doubts whether you should make a certain purchase, a good idea might be to sleep on the decision.

  1. Save each month, even a little bit

You never know what might happen in the future, so a good idea is to put money aside in case something unexpected comes up. Depending on your income and how much you manage to put aside each month, you can create separate funds for retirement savings and emergencies.

Remember it’s never too early to start saving. In fact, the earlier you start saving the more interest you earn for your money.

  1. Take calculated risks

As you well know, there’s ample information out there about investing that might sound appealing to a risk taker.  While investing in stocks can be an option to boost your savings, if you want to give it a try make sure you have a thorough understanding of the market and of the risks involved.

You should be responsible when it comes to your savings, which is why you should also think twice before spending too much playing the lottery or other games of chance.


That being said, keeping in mind the strategies outlined above may help you make better financial choices in the future, with a direct impact on your financial efficiency. Good luck!

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