Why you never run out of money – we found out how to get out of this vicious circle. There are five reasons why you never run out of money.
There is an opinion that money is not enough for everyone and always. If you start earning more, along with income and expenses grow, so the situation does not change,
Ukraine , Ukraingate , 8 , January , 2022 | Lifestyle
Money is a specific tool, and you need to be able to handle it properly. Many believe that the poor get poorer and the rich get richer just because of some universal injustice, but this is a fundamentally wrong statement. It is because of financial illiteracy that the vast majority become poorer year after year, linking them to unbearable debt and credit, while the wealth of the rich is steadily growing.
The first reason is that your needs do not match your income
There is nothing wrong with wanting better things than what is available to you now. The growth of needs in accordance with the increase in income is quite normal and predictable. You can hardly expect that, having received a salary increase of, say, ten thousand hryvnias, you will continue to buy second-hand clothes and eat instant noodles. Unfortunately, the opposite is often the case when a person’s needs grow regardless of their income – this, incidentally, is the trap we fall into, at least once using a loan. If the loan was not spent on necessities (for example, you are in debt to buy a plasma TV or update your wardrobe), we get used to the rising standard of living and with great difficulty can further “lower” it back.
The second reason: you do not take into account small expenses
It would seem that allocating twenty or thirty hryvnias for a cup of morning coffee before work is not such a grand expense. However, if you buy takeaway coffee before each workday, the amount you spend on it per month can be staggering. According to statistics, the cost of “coffee with you” for the year will be about six thousand hryvnia (depending on the price of the drink), which is not so little – for comparison, this money can afford to pay a modest vacation for one.
The third reason: you do not count money and do not keep a budget
Money does not tolerate carelessness, and therefore never lingers with someone who does not know how to keep track of them. There is nothing unusual in this – if you do not know for sure (or even do not want to know) what your budget for the month, you can easily spend all the money right on payday, and then get into debt to somehow make it to the end of the month . The next time the picture repeats itself: you pay off debts, but are forced to borrow again, because you do not have enough money left.
If you have no idea how much money is in your card, e-wallet or cash – this is a worrying sign, and in the future it can lead to ruin. Try to introduce your own accounting system and do it as you see fit. It is not so important what you use, ordinary notebook or spreadsheets – the main thing is that all income and expenses are recorded with maximum accuracy. In this regard, the electronic version may be more convenient: if you are not attracted to the scrupulous persistence to record every hryvnia spent, the smartphone app will surely be to your liking. Many of these programs are linked to a bank card and automatically allocate costs to pre-set categories – if you make all major expenses with non-cash funds, you don’t even have to write anything down.
The fourth reason: you do not know how to plan big purchases
Illiterate planning of future purchases or lack thereof is a guarantee of lost profits and spent nerves. Here is a simple example: you are going to buy a refrigerator, and for your budget this purchase is quite large. It would be logical to spend at least an hour or two to determine what features and functions you will need, compare models on the Internet, read the reviews of people who have already bought the product you need. However, you go to the store and buy the first-best model, falling for the tricks of marketers who force you to buy what you do not need. After a month of use, you realize that you do not have enough capacity of the freezer, and the size of the “warm” compartment leaves much to be desired – it does not fit even half the stock of products that you used to replenish every week.
The situation described is the least that can happen if you approach the choice of large purchases spontaneously. It is much worse when you find, for example, that you have a poor quality refrigerator, and it is more expensive to repair than to buy a similar model. This is where you start spending not so much money as the most valuable resource – your time. You spend it on trips to the warranty service, on disputes with the store, and finally on choosing a new model.
Reason five: you don’t save competent contributions and investments
It’s no secret that our money is periodically devalued, whether we like it or not. That is why it is so important to start investing in the future in time, to create a financial cushion. Unfortunately, many do not consider it necessary to understand investing, preferring instant entertainment to create even meager savings. You can justify yourself with a low salary, which does not allow you to save at least some decent amount, but this is not the best solution. It can even be a reason to think, analyze income and expenses – is your job so good, if after paying for everything you need in your wallet splashes no more than five hundred hryvnia?
Source : Ukrgate