Have you ever had a salary on your bank card or in your wallet, a week has passed and it has evaporated? She racks her head for a long time trying to remember the big expenses, but nothing comes to mind.
The problem is not a bad memory, but a lack of financial control and a lack of planning. In this article, we’ll share with you some tips on how to change your attitude towards money and keep your finances under control.
Introduce the accounting habit
Some many programs and applications make it easy to track income and expenses. Install the program on your phone and enter the data daily. Very quickly, this simple action will become a habit, or an Excel spreadsheet will not be bad either.
Another effective method for not forgetting your expenses is to pay more with a bank card. The expenses will be recorded in your personal account at the Internet Bank and nice bonuses will be returned in the form of refunds and% of the balance to your account.
Otherwise, there is no point in keeping meaningless logs. And it will drop it quickly. Good reasons are needed. Decide what you want. What is your goal? Porsche Cayenne ? a two-room apartment in a new residential complex, a second higher education in the best educational institution, an expedition to Africa. The objectives should be as clear and detailed as possible. Not just a new camera, but a CANON EOS M50 interchangeable lens camera, for example.
When you know the exact price of your dream, the path to it becomes shorter and the motivation to account, monitor, and save money becomes stronger.
“When I see a target, I don’t notice obstacles!”
Once day-to-day accounting is in place and goals are set, start looking at expense categories. There is financial accounting software that can perform a summary analysis by week, month, and year. This helps identify where most of the money is going.
When we realize how much we spend and how much money is left in the account, we learn financial planning. Put a box in each category of expense and try not to go further.
After taking into account and analyzing the expense categories, we proceed to the optimization.
How long have you renewed your internet rate? And the rate for mobile communications? They are constantly changing, profitable and relevant offers appear.
The same applies to bank fees, fitness subscription, housing, and communal services.
Time is the most expensive resource that is exchanged for money. Remember this every time you spend time-saving a little and compare it to how much you could have earned during the same period.
For example, instead of picking up an order yourself from an online store, pay for shipping. Delivery saves gas, time, and nerves.
Remember, time is your most precious resource.
We often do not use what we have learned. Why? The reasons are different, ranging from banal laziness to psychological aspects that make us do what we are used to.
The same goes for financial education. When we define financial literacy or list the basic qualities of a financially literate person (keep track of income and expenses, build savings, navigate the world of financial information and know where to find the right one, invest, have a financial cushion, makes a rational choice of financial services and knows, how your rights as a consumer of financial services are protected), then we do not focus on the fact that a person, knowing all this “theory”, does not apply it in practice.
Smart financial behavior focuses on applying the basic principles of financial education in life. Usually, it is a person who realized that it really works and is capable of giving more. On the other hand, most people don’t keep track of their income and expenses because “it’s boring.” It does not generate savings, because “we live once and there is not enough money anyway”. Take unnecessary loans, because “I want it right now.” He does not invest because “there is not much money.” You are caught by financial scammers, as you cannot properly evaluate the falsification of a profitable offer. It does not have a financial cushion because “we do not need it.” And so. But start thinking about sound financial behavior only when a crisis in personal finance has come (or is looming).
Strong financial behavior isn’t just about financial literacy. It often works because the person wants to be rational, and past mistakes have shown how not to.