People dispose of money in different ways, but everyone wants to do it with maximum benefit for himself. Some people are lucky enough to have a pragmatic mind, and for the first few years of earning money they manage to get into spending efficiency mode. And for someone in this respect all is not so rosy – the money consistently ends in the first two weeks after their arrival. And it absolutely does not depend on a level of the salary. The first can earn a little below average, and the second – much higher.
And if you include yourself, or suspect that you belong to the second category, then we have prepared for you some tips on how to properly manage your money.
So, How to Properly Manage Your Money:
- Control your spending
The first thing you need to do is to take control and start keeping track of all of your spending. There are many ways you can do this. This can be a good old ledger, in which all, even the smallest, expenses will be meticulously and daily recorded. But such a method requires appropriate discipline. You can use modern methods such as installing a spending app on your smartphone, but even then, no one will enter the data for you. Another option is to move everything to the world of electronic money and abandon cash, then all that you spent can be viewed in the application or on the website of your bank. In any case, if you have decided to radically change your approach to shopping, you will need to choose something that will allow you to monitor “leaks” without stress and nerves and find a way to spend money properly.
- A pragmatic approach.
Buy only what you really need. Truly successful people, including in financial matters, never sweep from the shelves in the store, everything that more or less like. The best thing is not to go to the mall thinking “I think I reguire a jacket or a new phone, ouch, was not there, on the spot we’ll figure it out,” and first decide why you’re going. Optimal option – to see the assortment of stores from home with a mug of tea, and then postpone the purchase indefinitely. So to speak, to let the desire insist and only when you are completely convinced that you cannot live without this thing – go to the store and buy. There is also a good option to choose one day a month in which you will make one or two major purchases. This approach doesn’t limit your ability to go shopping, but it does allow you to use your money to your advantage. Determine a major purchase limit and buy items that do not exceed that limit in a single day. You’ll notice that the amount of unnecessary items will decrease, as you’ll have time until X day to figure out exactly what you need a new phone or a designer coat.
You can do an experiment, do not limit yourself to shopping for a month, as long as you write down all the spontaneous acquisitions. Afterwards, analyze the list and realize that uncontrolled shopaholism is the reason you haven’t become a millionaire yet.
- the lack of emotion in spending
One of the main motivators of sudden purchases are emotions. A bad or, on the contrary, a good mood, permanent stress can be a catalyst for inconsiderate spending. With the latter it is worth fighting in other ways, that is, to visit a doctor or engage in reflection and independently understand what exactly brings into your life a sense of dissatisfaction with it and as a consequence pushes to shopaholism. To become aware of some of these aspects, you can take our tests and use them to find out which area is the main failure.
With mood and shopping is more difficult to fight, although it is possible. You can simply avoid visiting stores at critical moments or, if there is no way out, write lists and take with you the exact amount of money. A good option can also be the so-called controlled spending, when once a month, for example, right after the paycheck, you allow yourself to buy absolutely unnecessary, but extremely fun things and even more than one, but with the condition that they do not exceed a certain limit. This will allow you to relieve the emotional stress of having to constantly save and keep track of finances.
- Don’t react to brands.
In most cases it does not make any difference what company you have a phone or laptop, as well as what designer’s coat you have. Running after brands, especially when finances objectively only allow you to look at them, leads to debt. And that’s another trickle-down that prevents you from managing your finances effectively.
Of course, you shouldn’t give up expensive brands altogether. If you can not live without a phone that costs as much as a cast-iron bridge, you can just save up for it. Let it be slow, but for the time that you’ll save you will see that this is a thing you need, not just because it has a colleague at work or at some celebrity. And the joy of buying something you’ve been dreaming of for so long is many times greater than taking it on credit.
- Don’t accumulate debt.
The only thing worse than living the last week of the month on empty macaroni is living on credit. Of course, it’s hard to resist all these ads, which from every iron shouting that anything can be yours today “without prepayment and overpayments”. And no one is asking you to give up credit if you take it seriously and are realistic about what your paycheck can do. After all, it’s really a way to make big purchases quickly.
The main thing is to pay back the borrowed money in time. And, of course, do not use a credit card as a kind of analogue of a debit card, especially if its limit is higher than you can afford. And also do not forget that in addition to the borrowed money yourself, you can suddenly find yourself in debt to the state, it is, of course, about the fines and taxes.
- Spend on your education
If you don’t want to deny yourself anything and buy the first thing you see, you should make yourself a highly qualified specialist who will fight for. This requires a certain investment in your education, both temporarily and financially. But it is worth it.
Just decide what you do want to be when you grow up, or maybe make your hobby the business that brings in the basic income and develop in this direction. So a good answer to the question, “Where to invest money to make it work?” is education. Spending money with an eye on the future is better than seeming richer than it really is.
Other Ways to Invest Money
Sure, you can play the stock market, bet on sports, hope for sports lottery and your own luck, but all these ways require not only the status of favorite of fortune and an analytical mind, but also a certain financial cushion, which will not let, figuratively speaking, die from hunger, if everything goes wrong as planned. Risking everything in this business is not the best approach.
The best way to invest and increase funds has always been and always will be real estate, of course, we are not talking about the only housing, but about the premises for rent. But here, too, a certain level of income is required for its maintenance and not a small initial cost.
We Hope That Our Article Has Helped You!
