Hello-op! Managing money
Two eternal questions have troubled humanity for centuries: where does the dust come from and where does the money disappear? If a reliable vacuum cleaner can always handle the dust, then the solution to the fate of the money continues to remain a mystery.
Contents of the article:
ever since the ancient Assyrians gave the world the concept of money, freeing us from the exchange of hides for spices and fabrics, funds have continuously flowed from some and mysteriously increased from others. Is it so incomprehensible? Let’s try to figure it out. World experience confirms that the attitude to finance of rich and famous people differs markedly. Some save to the last penny, like Gobsek, choosing clothes from second-hand stores, despite millions in their accounts, while others buy airplanes and dress their pets in shoes decorated with pearls and rhinestones. However, they have one thing in common: not a single wealthy person will say that they do not know what exactly their money was spent on. Being aware of your finances is the foundation of success. And the path to this is much simpler than it seems at first glance.
Coco Chanel, world fashion icon: “Here’s a paradox: I used to chase money and never had it. When I stopped doing this, found my business and focused on a big goal, the money began to come to me.”
Expert’s comment: “This is not magic at all. A person who is passionate about his work is completely immersed in it, constantly develops and invariably reaches the top in his field.”
To prevent money from disappearing without a trace, it is important to develop the habit of controlling your expenses and income. Maintaining a personal budget is the first step to financial freedom. Record all income and expenses, analyze where excess funds are spent, and set clear financial goals. It is equally important to create a reserve fund – money for a rainy day, which will help avoid debt and stress in case of unforeseen circumstances. In addition, investing is a serious tool for increasing capital. Even small amounts invested regularly and wisely can turn into significant capital over time thanks to compound interest.
It is also worth remembering the psychological aspect of finance. Set realistic goals for yourself, avoid spontaneous purchases influenced by emotions, and learn to distinguish between needs and wants. Financial literacy, discipline and awareness are what separate those who manage money from those whose money controls their lives.
First step: learning to keep records
Record absolutely all expenses within 30 days. Forget about paper notepads – today there are many convenient apps available on the Internet for managing your home finances. They will help you avoid tedious manual calculations and automatically reconcile your income and expenses. Thanks to modern technologies, even those who are completely far from the economy can easily control their budget.
Doing home bookkeeping is more exciting than it seems. Soon you will stop wondering where your money disappears: “I just bought mascara!” The principle is simple – a visual display of expenses allows you to control every little thing: from an accidental chocolate bar and a taxi ride to coffee drunk with a friend who forgot her wallet. It is from these tiny, often unnoticed expenses that a decent amount is collected. As a result, you will clearly understand where your money is spent and in what volume.
Second step: divide by categories
When you analyze your expenses or use the app’s report, take a close look at their breakdown. Scold yourself and complain, “Why so much?” – unproductive. The past cannot be changed, so forget about regrets and focus on the real state of affairs.
Here’s the easiest way to organize your spending:
Basic expenses – housing, food and household goods, transportation – should be classified as mandatory. Distribute the remaining expenses among the two remaining categories at your discretion, based on your own values and convenience. Do not pay attention to other people’s advice that requires getting rid of taxis in order to save money. If this half hour of travel gives you a good mood and a charge of vivacity, then for you this is a need for comfort. But the constant purchase of many new pairs of shoes is often the result of following fashion, rather than concern for one’s own well-being. Create your own rules!
Third step: getting closer to success
Determine how much you can save by eliminating unnecessary expenses. But don’t get too carried away: it’s wiser to immediately divide it in half to avoid excessive restrictions. Psychologists warn that strict abstinence often leads to subsequent excessive shopping – an attempt to compensate for oneself with purchases.
The remaining half can be put to good use: put in a piggy bank, open a savings account, or entrust it to relatives. It’s worth putting the “lungs” there too. income – gifts, debt repayments, small part-time jobs. This approach simultaneously solves many problems. The advantages are obvious: in six months you will have collected an impressive amount, enough for a vacation, repairs, a designer item or a subscription to a prestigious fitness club. The main thing is that you will acquire the skill of cooperation with financial resources. Extravagance and thoughtless spending are signs of immaturity. It is much more profitable to be an adult, control your budget and have more funds.
Without self-deception
Marina Nagornaya, psychologist and leading HR specialist: “In modern psychology there is a section – “Psychology of money.” Previously, this topic was considered only from a cultural point of view, but current research has found that the biological mechanisms of the brain play a key role in making financial decisions. The psychology of money is a special case of game psychology, which studies human behavior and its reactions. Earning and spending are essentially satisfying the need for social interaction. It is especially interesting to observe the typical psychological effects that occur in most people. One of them is the “money illusion” — perception of the nominal value of funds without taking into account inflation. It is because of this that many experience difficulties in rational budget planning. The most financially successful people are those who think outside the box and are less susceptible to cultural restrictions.”
Benjamin Franklin, American scientist and statesman: “Beware of small expenses – a small leak can sink a big ship.”
Expert comment: “This is a very correct psychological observation. Major purchases are carefully considered and rarely made impulsively. But the small “inconspicuous” ones spending accumulates and forms much larger amounts – that’s their danger.”
Statistics show that the average man spends about $140 on a gift for his beloved, while women rarely exceed the threshold of $80.
- 93% of men are dissatisfied with the financial habits of their spouses, while only half express complaints about their intimate life.
- Research carried out in parallel in Paris, London and New York showed that single men have 24 times more savings than single women.
- Men in stores usually spend one and a half times less than the stated budget, and women – 2. 5 times more than planned.
- 36% of the total amount earned in life goes towards buying a home.
- 57% of Russians spend all their income without saving.
