What is the main difference between a financially literate person and an illiterate one? A bank account with seven zeros? Real estate in sunny California? Or maybe a collection of Faberge eggs? No. Everything is much simpler: a financially literate person spends less than he earns.
A financially literate person knows how to manage their finances and what to invest them in. And to make even your entertainment useful, you can pay for Bet22. However, remember that gambling is a game and not a way to earn money.
Determine what you spend money on monthly – housing, rent, loan products, etc. Write them down on a piece of paper. These will be your “permanent items of expenditure,” abbreviated AKP. Then subtract the PSR from the amount of income. You will have money on your hands, which you will dispose of.
To understand where the money goes, you need to monitor them. Create a table in “Exel” or “Notepad” and enter information about expenses and income there every day. In a few months, you will be able to track the dynamics and understand what adjustments can be made.
Put It “In an Envelope”
There is such a wonderful rule called “pay yourself.” “Paying yourself” means saving at least 10% of your monthly income. You can do more – great! Such a useful financial habit will help you create a safety cushion if trouble tries to catch you off guard.
In the matter of saving money, will and discipline are of great importance. You can’t open the “envelope” every time you want to make an impulsive purchase.
It’s only for emergencies. To “protect” money from yourself, you can open a deposit in a bank and make sure that the bank deprives you of interest for withdrawing money before the deadline.
Prefer Wholesale to Retail
Some things – in particular, products – can be bought in bulk. Pasta, cereals, flour, olives, butter, and other food products can be bought cheaper at wholesale warehouses and sometimes with a good discount.
Buying Things Out of Season
By buying things out of season, you can save more than 50% of the budget that is spent annually on the purchase of these goods. Swimsuits and Panama hats – in winter, fur coats and boots – in summer.
Remember that Quality is More Important than Quantity
Practicality is a property of acquired things that is worth paying attention to. It is better to buy some expensive but high-quality shoes than to buy three pairs cheaper.
It is unlikely that the latter will be able to serve you for more than one season. It is better to overpay at the start but save a lot later.
What about Entertainment?
Do not deprive yourself of rest and entertainment. But they should also be approached wisely. Instead of going to an expensive restaurant, you can sometimes (and preferably more often) prefer a cute picnic in the woods.
There is Never a Lot of Money
To feel confident, you need to have several sources of income. Which of the skills that you possess can be monetized? Maybe you know English or are good at photography?
Expenses are Less than Income
As we said at the beginning. Optimize your expenses and think about ways to increase your income, and then you will be in profit.