There is probably no such person who does not have his own dream. For the implementation of some of them sometimes require significant financial investments. That is why it is so important to learn how to properly manage finances. Then it will be possible even to realize the most unrealizable dreams.
There are a number of financial rules that can help us save money. All of them have repeatedly proved their effectiveness. We suggest you familiarize yourself with some of them, and if you master them, then all your dreams will cease to be only in your imagination and will begin to come true. Read them carefully and start using!
Track your expenses
If you track your expenses on a daily basis, then you know exactly which ones need to be reduced. Thus, you will immediately realize that lunch in a cafe will cost you much more than what you cook yourself. If you constantly monitor all your expenses, you will see that eating out is the biggest daily expense you have. In this case, you can always reduce it.
Some people try to save on essentials by buying their low-cost counterparts in the markets. At the same time, they may not even notice how much money they spend every day on cigarettes and coffee. Or it may seem to us that we never buy unnecessary things for us, when in fact we have developed the habit of spending almost every weekend in shopping centers, acquiring a new thing that is not needed.
Buy quality items
Each of you, most likely, heard the expression: "I am not rich enough to buy cheap things." But not everyone knows that it belongs to one of the richest people in the world, Baron Rothschild. And he was right.
When a person has financial problems, he most often tries to solve them by saving on purchases of various things he needs. But in practice it turns out that when buying cheap things, we not only reduce our expenses, but usually increase them at times. For example, if we purchase low-quality shoes that we use every day, then they quickly become unusable. We have to buy it much more often than an expensive and high-quality product.
Of course, each of us, buying this or that thing, primarily focuses on how much money we can afford to spend. But we must not forget that the real value of a product is not its price, but how long we can use it.
Plan your expenses carefully
To manage your money most rationally, you need to learn how to plan your expenses. If you are considering making some major acquisitions, then you will need to reconsider your usual daily expenses. It’s better to try to limit them a little this month. Careful planning of expenses will save you from the desire to go to some store on the way home to get some, for example, sweets or an extra cup of coffee. Having painted your budget, try not to spend more than what you have outlined.
Meet your needs first
Each person has his own life needs. In general, there are not so many of them: food, shelter, clothing, security, love and freedom. The primary satisfaction of these needs removes many problems from us. All this makes us happy.
When a person satisfies his basic needs, he has an impulsive craving for the acquisition of other things, which are most often useless garbage.All these unnecessary purchases eat up a significant part of the budget and subsequently bring some disappointment. Therefore, every time you intend to buy something because of a passing desire, always ask yourself if this thing is really necessary for you.
Better buy a used car
American statistics say that only 39% of wealthy people buy new luxury cars. Most of these rich people belong to show business and big sport. The rest of the Americans, with substantial capital, prefer to buy used cars, most often Japanese and Korean manufacturers. These are brands such as Hyundai, Toyota or Honda. Buying them, you will always save a significant amount of money, while you will have a good car.
Try to pay off your loan faster
A lot of people, paying off the loan, try to make the smallest possible amount. If you have a fairly modest budget, then such a desire for minimum payments may seem quite reasonable. But this is only at first glance, since interest is accrued every day and it is more profitable for you to repay the loan issued as soon as possible, especially if the remaining amount is not so large. Less debt - less interest!
Decide who in the family is responsible for the budget.
In order for the family budget to be spent most optimally, it is imperative to determine who in the family will be responsible for it. Otherwise, large amounts will always be spent on unplanned purchases. It is necessary to find out which of the spouses knows how to handle money better, discuss this and assign roles in this matter. Such an attitude to the family budget will allow you to better plan expenses and protect yourself from many conflicts between spouses in the future.
Get rid of stereotypes of thinking
It is unlikely that there will be many people in the world who sincerely would not want to live in abundance, earn decent money and possess all the necessary things. Most often they work hard, try their best, do everything possible to achieve success, but for some reason there are no desired results. Most often, the cause of failure is the established psychological stereotypes that each of us carries in ourselves from childhood. Here are some of them that our parents instilled in us: “All the rich steal and lie”; “Honest work does not make big money”; “Better to be poor, but honest,” etc.
If you believe in these claims, consider that you are unlikely to ever be successful. They will affect your life with the way you handle money. You will always spend all your earned money in the least optimal way.
Calculate your income in relation to expenses
Each day of our lives has a great impact on whether we increase or, conversely, reduce our ability to achieve financial prosperity. There are some points that may contribute to building our financial future. To do this, you must first calculate how much you earn per day. Then you need to find out how much money is spent on food, gasoline, travel in public transport, daily necessities, etc. Typically, the income of most people is 30% higher than their expenses.
If this amount is less than 30%, then you need to urgently think about either increasing your income or cutting costs.
Share your expenses with friends
There is another way to significantly save your budget: just share many expenses with your friends and relatives. For example, if you are used to going to supermarkets on weekends, then you do not have to go there alone. If your friends or acquaintances also planned a trip there, then why not use the same transport and share the costs for everyone.
Also, in supermarkets on this day there may be discounts on the purchase of a certain amount of some product that will be necessary for your friends. You can participate in the action, sharing all expenses equally. The same goes for online stores. It is much more profitable to order the goods with friends in order to pay less for its delivery.