How to Save Money: 5 Reasons You’re Poverty
At school, no one is taught how to calculate a personal budget, how to save money and solve problems with utilities. Although no one would refuse to get these skills in addition to logarithms and other abstruse things.
As a result, this leads to the fact that people simply do not know how to handle funds and are desperately trying to figure out how to make money. With what, it doesn’t matter. Because the fact is important. Faced with this? Yes, yes, we do too.
But before solving the problem, we advise you to find its roots. In this article, we will talk about the top five mistakes that constantly pull money out of your wallet.
1 You don’t budget expenses
And although this seems like a banal example, only a few think about how much they spend per month. But impulsive shopping is like a villain in a superhero movie. They always appear at the wrong time and eventually ruin the hero’s life. We have already written about them in more detail in this article. Study to better understand why we do them.
In other words, spending money without a plan is like walking through a minefield without a mine map. Therefore, it is important to draw up a budget on time. Write down your salary, allocate money for utilities, food and other necessary things. And the rest is already distributed for entertainment and impulsive purchases.
The researchers also note that avoiding non-cash funds helps save money. Think for yourself: it is more difficult for us to part with money if we touch it, fold it and pass it from hand to hand. And we do not follow the changing numbers on the virtual account.
2 You don’t save money for the future
You work, get paid and you are happy with it. Now imagine that you have to quit. Or you will be mowed down by an exotic disease that astronauts will bring from Mars. An unpleasant situation, you will agree.
Therefore, immediately decide how it is more pleasant for you to save money. Put at least ten percent of your salary into a savings account. Over time, you will accumulate your salary for two months or more. And already with this financial cushion, neither a dismissal nor an exotic plague from the other end of the universe will scare you.
And, believe me, even with a small salary, saving money is useful. This will help you feel more secure and give you the confidence to make risky decisions at work. Because it is more pleasant to be with money, but without work, than without work and without money.
3 You take out more than one loan
It is very pleasant to buy. This is an obvious fact. Advertising campaigns, thousands of promotions and holes in the personal budget are built on this. And, ironically, these holes most often stop us.
But as soon as the banks realized this, they decided to give consumer loans. Then loans were also given to shops. They don’t have to be taught how to make money on us. Now these loans are easy to get. And get not one, but two or more at once. Phones, laptops, mortgages – all this is on credit. Sometimes at crazy interest, at other times – at a profitable one. But the essence remains the same.
And then a person looks at his spending budget and does not understand how to save and save money. And even more so if the money is not there. In such cases, we advise you to exhale and think about how much you need a loan.
Determine what benefit the desired product will bring. Will he bring it, how quickly will it pay off financially and emotionally. And don’t forget financial constraints. Even one loan hurts the wallet, and two are already becoming a stop anchor. Therefore, sometimes it is better to wait a little with a loan, and accumulate the same funds in a couple of months.
4 You spend a significant portion of your paycheck on debt
This point follows from the previous one, yes. But his problem is not in the number of loans, but in their size. If at least half of your funds go to paying off debts, this is a problem. Because it forces you to turn to banks again and again. And make loans to pay off loans.
And how to make money if only banks get rich with the help of such a scheme is not clear. Every month the funds will be less and less. After all, instead of income, only expenses grow. And in this situation, it is easier for a person to immediately hang a collar on himself and go to cotton plantations. Because if he fails to win the lottery, things will escalate to a plantation anyway.
Therefore, try not to collect unnecessary debts. At first it may seem that this will make your life easier, but it is not. And even vice versa: it will only aggravate the situation. And getting rid of this error will be easy if you have already dealt with those above.
5 You don’t learn new things
Stagnation always leads to regression. This is an abstruse saying from abstruse people, yes. But its meaning is simple. Don’t stand still – it’s bad.
It happens that you are stuck at one job. Sit in the same chair, with the same responsibilities and the same salary. Year after year. Because it’s stable and safe, you say. But everything is just the opposite. This is the most dangerous situation for your wallet. After all, your needs are constantly growing. It’s as natural as taking a shower every morning.
But your skills remain the same. This leaves you with no choice. New skills are applied in practice, expand your professional opportunities. And move you up the career ladder. Therefore, we advise you to listen to folk wisdom and learn constantly.
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