Most people earn money all their lives, but they live from paycheck to paycheck. To change the situation, you must learn to communicate with money and their accumulation. For a happy and fulfilling life, it is important to capitalize your income, rationally allocate finances and invest.
How to start saving money
First you need to psychologically adjust yourself correctly. This is considered the first and most difficult step. Thoughts about the constant lack of money will not bring you any good. A person with a stable income can easily set aside 10% of his monthly salary, and this will be little noticeable. So write down how much you want and you can save it monthly for accumulation. Calculate how much in this case it will be possible to accumulate for 6 months, a year or two years, write down the amounts received.
Try to visualize the goal, which will allow you to easily achieve the desired. It is very important to see the result in advance, as it inspires and gives enthusiasm.
Often, the accumulation of money and financial well-being is hampered by a subconscious program that is laid down in a person as a child. For this reason, some people should turn to a psychologist before starting to save. It will help to understand the reason that prevents the proper preservation of their own money and capital increase. Awareness of the problem is the first step towards self-development and improved financial literacy.
In addition, modern psychologists often say that the events of the past century, such as dekulakization, are one of the causes of the fear of money. Scientists believe that ancestor memories are deposited in human DNA. And those whose great-grandfathers were dispossessed during the revolution often have difficulty in achieving high financial income and accumulating funds. This psychological attitude is easily corrected.
Key recommendations to help save money
Do not take debts
When a person lends money, he takes responsibility. If there is a hole in the budget, it must be patched, but credit resources cannot be spent on things or services that are not vital.
Borrow money only in case of urgent need, for example, for treatment, food, utility bills. Any other needs, such as entertainment and clothing, should be paid from your own pocket.
If you want to make some big purchase, ask yourself: will the new acquisition affect social status, how will the purchase be useful in a practical sense, and what benefit will come from it, whether the acquisition will be valuable in 2-4 years, improve or increase new acquisition wealth level.
Write down the answers and carefully study them, then in this case you will not have to borrow money, take loans to make an unnecessary purchase. If you want to please yourself with something, start to accumulate. This will allow you to deliberately and without emotion, to competently invest finances without loans.
Four Envelope Rule
From early childhood in Europe and America, they are taught how to save money properly so as not to infringe upon their own needs. The rules are simple: calculate your total monthly income, from the amount received, take away money for food, utilities, household chemicals, simple practical clothing, personal care products, travel. The remaining amount is divided into 4 parts and lay on envelopes. At the beginning of each week, take an envelope. This will be your budget for the week, beyond which you can not go. It is also advised to have another, fifth envelope for unforeseen expenses or the purchase of your dream item. Set aside a very small amount every month. Thus, when you need, you will be able to please yourself with something, go on a trip, buy a gift to a loved one.
Determine purpose, time and amount to accumulate
It is very important to decide what you want to save money for, your goal should be incendiary. If a person is interested in the final result and really wants to achieve it, then he will definitely succeed. Remember that any goal must be clear, realistic and planned. For example, a person wants to go to the sea on vacation, this is not a goal, this is a desire.
The goal should sound like this: in July 2019, I will save up for a vacation in 2020 in Georgia. It is advisable to specify exactly where the vacation will take and how many days it will last. Accumulation "just in case" or "black day" is meaningless, without goals you can not accumulate a single ruble. Set realistic goals, and when the first one is achieved, choose the next one, but already more ambitious. Also set a clear time frame. For example, you decided to save $ 1500 to buy a new technique. Calculate how much you need to postpone each month and for how long to achieve the desired result without harming your current budget.
Set priorities and make the right financial scheme.
Everyone saves finances as he wants. But it is necessary to think not only about immediate goals, but also about your future, and specifically about old age and about the heirs. This will help the detailed scheme of the distribution of finances:
mandatory expenses, which include housing, food, communal and so on;- unexpected expenses, such as repairs or an urgent trip;
- medicine and sports, which includes payment for workouts, insurance, and so on;
- education;
- bonuses in the form of self-promotion trips to the sauna, salons, cinemas;
- projects and goals, investments and purchases of important things and so on.
mandatory expenses, which include housing, food, communal and so on;Proper custody of finances
Before accumulating, it is advisable to decide where you will keep your finances. You should also find a good place where inflation will not eat your money for several months. To do this, you can open two deposits in the bank. And preferably in the currency. This approach will allow you to both collect a large amount and increase your income.
It is possible to consider and term deposits, which provide a high interest rate, but have a number of restrictions on withdrawal. There are also savings deposits, they are opened for the accumulation of funds. They allow you to set aside a certain amount automatically. Some open a deposit card, in this case, the money can be used at any convenient time.
How to avoid mistakes when accumulating funds?
We have collected expert financial advice from around the world to help avoid a number of popular mistakes that many people face.
The first mistake that is made when saving money is putting off the balance. It is difficult to say how much you will have at the end of the month, so you need to save money immediately after receiving your salary. You can also make an automatic transfer of money from your main account to a deposit or to a savings account. This applies to those accounts where the owner can at any time withdraw any amount of funds. It is better to open a deposit for six months or a year, because this will prevent unnecessary spending, and the money at that time is guaranteed to be saved.
It is better to save money on one account. When a person has only one account, money will accumulate faster. But this is good if you have one goal. If the goal is two or more, then it will be quite difficult to collect the necessary amount on one account, and in this case a separate account should be opened for each goal.
Only 1 out of 10 residents of the post-Soviet space does not spend all the money until the salary. It turns out that there are very few people who can postpone income. The reason lies in the fact that many do not understand and do not know how to properly accumulate money, improve living standards and preserve a sense of peace, as well as confidence in the future.
