How to stop spending and learn how to postpone
Mandatory accounting of income and expenses
How much money do you have in your wallet? And how much is left on the salary card? Can you list the last ten expenses, including even the smallest ones like a fare or a cup of coffee? Money loves the account and does not tolerate irresponsible attitude. Until you learn to count how much you received and where you spent, you can never save up for vacations or repairs, let alone participate in serious investment projects. Start small: record all your food expenses. You'd be surprised, but more than half of all the money earned goes ... to the toilet. We are accustomed to compensate for everyday stresses and encourage ourselves with something expensive and tasty, we have long been eating up problems and are simply choking the fridge with products that sometimes we can not eat for a month.
For several weeks, collect checks and diligently put all spending on food in a separate file, then divide the products into categories, sum.Do you need to buy so much milk, if it still spoils on the third day? Is it good to spend so much on convenience foods and sweets? Wouldn't it be more profitable to purchase more cereals and fruits by limiting the costs of alcohol and business lunches? You will be surprised how many reasonable reasons for reducing costs you will open.
Save at least 10% of revenue
It is important to note here that these savings are not for earnings. At this stage, do not think about the investment strategy, painfully deciding whether to invest everything in real estate, take it to a bank or play on stocks. These 10% will help to develop internal discipline and impose strict order in the head. Depriving yourself of a tenth of income, you are forced to live with certain restrictions on spending, which means you will begin to plan and make more informed purchases. At this point, for the first time in their lives, many are beginning to keep records of expenses, in order to understand where the money is being spent and what it is easier to give up. For the last five years, I have been postponing 35–40%, and for me this is a huge incentive to increase incomes and search for new earnings. It is easy to postpone when there are no problems with money, and it is very difficult when you have to count every penny.
For savings, I have a separate debit card. On the balance of funds in the amount of up to 300 000 rubles (different banks have different limits), interest is accrued, which gives a small passive income already at the accumulation stage. As soon as the amount on the card comes to a limit, I transfer everything to a bank account with a more favorable rate. And I force these amounts to work.
Immunity and a clear division of savings
Before you save money, clearly state what exactly what, how much and for how long you are ready to set aside. Do not want to immediately want to leave, repair, new boots and a laptop, but priorities must be arranged in advance. For example, you analyzed income and expenses, deciding to set aside 20%. Of these, 15% is for repairs in the newly purchased new building and only 5% for holidays. Because the faster we eat from a rented apartment, the sooner we will get rid of the expenses in the form of rent. And the sooner the amount will increase by 5% on vacation, because due to reduced costs it will be possible to postpone more. In no case can not take from one piggy bank to quickly close another need. If we set aside for repairs, we don’t take new boots from this money. We either save up for boots, in parallel looking for new sources of income, or resort to a reserve fund.
The reserve fund is the most important and primary savings that every self-respecting girl should have. I am terribly afraid of various force majeure like relatives' illness, loss of work, the need to move out of an apartment or an elementary broken washer, so I always have a certain “airbag” with me. Its size may be different, but I thought this: income per month multiplied by 12. If you are not so afraid of sudden trouble, you can multiply income by 6. This is also a good amount that will allow you to not know the trouble for at least six months. But remember that this is not a bottomless nub and it also needs to be replenished from time to time.
Savings should be economical
One my friend's family saves as follows. Once a couple of weeks, they go to the area before the farm and buy meat there with whole carcasses. Indeed, buying from the manufacturer is cheaper for money and more interesting because of the higher quality products. But let's calculate the savings. The road to the farm takes a few hours and includes spending on gasoline and snacks on the road in some cafe. To store several huge carcasses, a separate refrigerating chamber is required, which must be purchased and which will further increase the cost of electricity.Total of one and a half thousand rubles of economy will remain God forbid three hundred rubles. Another example of unreasonable savings is the habit of buying low-quality, same-type clothing on sales. To buy once good boots is expensive, but every season it is economical to change them for low-quality consumer goods? Savings are not so much a limitation of spending as a more profitable and far-sighted disposal of income.
Some more tips:
Look for additional earnings.When you have only one source of income, it is always a big risk. When there are two or more relatively regular sources of income, this is a huge plus and saving option. In addition, sometimes only extra work allows you to accumulate the same reserve fund.
No loans and debts. Only experienced financiers and investors who have sufficient financial literacy can afford loans. For a simple person, borrowing any money is unprofitable. Even interest-free installments are deceptive, because it tempts you to buy unnecessary things. In debt to friends or relatives need to give exactly as much as you are willing to donate.
Start now. The best times for saving money will never come. You either start doing it now or not. Do not rely on the employer, relatives, pension or other state support. Imagine that you have no one at all. And it depends only on you whether you will say thank you in the future.
Lonely Shepherd (The Lonely Shepherd)
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