Hello! Igor Zuevich is in touch, and today we will talk to you about what worries every person, both poor and rich: how to manage money correctly. You will learn that money management is a useful skill that can be mastered if you put aside doubts about its usefulness.

Has it ever happened that your acquaintances, relatives or friends, having the same income: some are constantly in debt, while others still manage to lend? Many will probably decide that everything depends on the level of income? But that's not true.

It all depends on how to manage your money correctly. This skill will allow you not only to save money, but also to direct it in the right direction and increase your capital.

To learn, follow these rules:

1) Start doing your accounting

Write down all your income and expenses for the month. Divide all income into certain groups and the corresponding budget for this group. (For example: food 10 thousand rubles, household chemicals 2 thousand rubles, etc.). The following expense items can be highlighted:

• Regular monthly expenses.These are utilities, telephone, electricity, possibly an existing loan or mortgage.
• Money for food.Costs in different weeks may be different from each other, but in the end, approximately the same amounts will still come out for the month.
• Payment for kindergarten and college.
• The most expensive is obtaining higher education in terms of monetary costs. Therefore, make it a habit to save money for your studies every month.
• Be sure to plan expenses such as holidays (organizing them and buying gifts). These expenses, although not constant, must be taken into account.
• Remember about your pets too. Their maintenance can also cost a certain amount, and sometimes not even a small one.
• Don't forget about leisure time. Of course, it can be spontaneous, but it’s better to plan it. Stick to this budget, do not exceed the allocated limit.In case you are still susceptible to spontaneous purchases, it is better to leave a certain amount in reserve, which can be spent on such purchases in the future.

Advice! When going shopping, have a snack at home or at work first. This will not allow you to collect unnecessary goods caused by hunger (crackers, chocolates, chips, buns, etc.).

Advice! Make a list of necessary products at home in advance and stick to it.

Advice! In the event that you do not understand that you are buying too much. You can write down all your purchases during the week and at the end of the week find out what was unnecessary and how much money was spent on it.

2) Optimize your expenses

Naturally, everyone’s income is different, but everyone’s needs are practically the same: food, recreation, transportation, etc. Prices for the above categories are different, it all depends on income.

But no matter what your income, you can always choose the best option for yourself without skimping on the quality of the product.

Follow these rules:

• Buy goods out of season (buy winter boots in spring or summer).Such a product will cost several times less.
• Shop for the week.This will allow you not to go to the store every day, which will protect your wallet from momentary temptations and save time.
• If possible, bargain.
• Buy goods with promotions and discount cards.
• Buy goods in large megamarkets, and not in the nearest kiosks and stalls. There prices will be inflated.

3) Stick to the 70 and 30% principle

Be sure to leave 30% of your total income. Replenish the deposit opened in the bank with 10% every month, you can save the other 10% or invest in real estate. You can simply save it for a rainy day. Use the last 10% for charity or donation. According to the rules of life, everything will be returned to you twice as much.

How to properly manage money in the family

It is important to learn how to manage money in the family. After all, money is one of the catalysts for family quarrels and divorces. Husbands and wives may have different views on spending money. The problem can be especially acute in those families where there is only one breadwinner (breadwinner).

How to manage money in the family?

• Discuss financial issues without children and in a good mood. Try to discuss everything calmly without raising your voice.
• Developing the right attitude towards joint and personal income. If one of the spouses works, then the other spouse must treat the money they earn with respect and not waste it on trifles.
• If both spouses work, it is advisable that future purchases be discussed between husband and wife. Also, so that spouses do not hide income and expenses from each other (this will simply cause distrust in the family).You can simply agree on a monthly amount that they can spend on themselves personally.
• Distribute responsibilities among family members. Let, for example, let the wife be responsible for buying groceries, and the husband for paying utilities.
• You can also involve children, if you have them, this will help you form the right attitude towards money at an early age.

How to manage money during a crisis

This is a fairly pressing question at the moment. Of course, you can just put the money at home, but then it will not be useful. They will simply become worthless. There are two options.

1. The first option, you can. If the deposit amount is decent, then you can live on the interest in case problems arise with work.
2. The second option is:

• If you have a fairly large amount of money, then it is best to purchase real estate. During a crisis, real estate prices fall, this is the time to invest. After the crisis, the price of the same real estate will be more expensive.
• Another option is to purchase a car, expensive equipment, or furniture.
• If the time has come for repairs, you can invest money in repairs. Buy goods before prices rise too much.You also have a chance to save on a repair crew, since during a crisis demand falls, but supply remains the same. Therefore, teams are reducing prices for work performed.
• You can invest money in gold, antiques, jewelry.

These are the most common investment options.

Asking the question: “What is the best way to manage money?” remember these simple rules. And with an average income, you can live no worse than others.

As you can see, if you already know that managing money well can have a positive impact on your financial well-being, then apply the methods you have just read about and continue to develop this important skill.As always, the main thing is to act correctly, and you will succeed. It is better to act together and together with those people who already have experience and results. Come to our programs and earn more at the same time!

With you,
- Igor Zuevich.

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How to spend money correctly

04.10.2018 1496

The ability to spend money correctly is the key to financial independence and stability. This is a real art that anyone can understand. You will need endurance and discipline, but the results will be worth it. Many people think that financial difficulties depend on external factors, low salaries, the crisis, but this is only one part of the problem. It's all about the inability to spend money wisely. Wealth doesn't come overnight, unless you win the lottery or are born into a millionaire family. To become financially independent, you need to develop, improve, read relevant literature, and change your thinking.

Financially literate people feel comfortable even with small salaries, while others get into debt with a stable, high income.

You don’t need special education to learn how to manage your finances. It is enough to adhere to the basic principles that teach you how to spend money correctly so that it returns, multiplies and works for you.

Cost control

The main problem for most people is uncontrollable spending. Financial instability occurs when all the money that is earned is spent. If expenses exceed income, a financial hole is formed and debts appear. People who do not control their spending constantly lack money. As a rule, already a few days before payday, they are forced to “tighten their belts” or even use a consumer loan, which aggravates the situation even more.

By making calculations in your head, it is impossible to learn how to properly manage money in the family and accurately control expenses. To do home accounting, determine where and how much money is going, and then analyze the costs. This is easy to do in a notepad where all the amounts are entered:

• First, write down your fixed monthly expenses (rent, utilities, loan payments, public transportation, or gas for your car);
• add to the amount the planned “inevitable” costs (manicure, hairdresser, dentist, etc.);
• We subtract the resulting result from the total amount of wages and divide the remainder into two parts. One can be spent on entertainment, buying new things, the second can be put aside for a deposit. The more money you manage to save, the better your condition will be in a critical situation.

To spend money economically, financially literate people apply the 60% principle. It lies in the fact that monthly expenses should not exceed 60% of total income. This includes mandatory, unplanned payments for unforeseen events. Of the 40% of the total amount, ten remain in the reserve fund, and 30% goes to investments that will bring profit in the future.

Recording costs in writing allows you to spend money wisely before payday and make fewer mistakes and spontaneous purchases.

Getting rid of debts

Another factor that negatively affects family budget planning. The variety of loans, the spread and availability of quick money have led to a life of “borrowing”. A person finds himself in a financial hole, from which it becomes more difficult to get out every day. When buying something for which there is no actual money, people overpay, and the more favorable and simpler the loan terms, the greater the amount of overpayment. Of course, there are situations when a loan is needed for business development or in force majeure conditions, for major acquisitions. When it comes to a momentary “I want” and a loan is issued for the purchase of gadgets, a wedding or a vacation, this is financial illiteracy. The number of families with multiple loans is no longer uncommon. They are forced to enter into new lending agreements to cover past debts. The problem is not a small salary or external factors, it is the inability to manage money wisely.

Proper home accounting means no consumer loans, spending only the money you actually have on hand.

The principle of the credit system is financial slavery of consumers. A person who lives “in debt” will not achieve stability; he will become bogged down in obligations. Loans put pressure on the psyche, forcing you to do something you don’t like instead of living a joyful life.

Conclude loan agreements after preliminary analysis and weighing of all factors. In other cases, rely on your own strength, set aside to implement your plans.

Reasonable spending

Another nuance that will help you learn how to spend money correctly and manage your family budget. This includes several rules for the distribution of finances:

• Never overpay for a product or service if you can buy it cheaper. For example, the same product in different stores may cost differently. It all depends on the image, location, level of service;
• Buy only necessary goods or services for which you have the funds. Don’t spend extra money unless there is an objective need;
• don't deviate from the plan. If you go to a store or market for a specific item, buy exactly that, and refuse random “bargain” purchases. Before going out, make a grocery list and don’t deviate from it;
• Controlling your emotional state will help you spend money wisely. Try not to buy anything out of emotion. Most likely, the purchase will turn out to be a waste of money when the feelings subside;
• do not be influenced by your surroundings, fashion, trends. Most unnecessary purchases are made by people who want to conform to imposed standards;
• if you have the opportunity to buy products in bulk, use it;
• use discount cards, bargain. Contrary to popular belief, you can bargain not only at the market. At the time of bargaining, you actually receive additional income from the purchase and replenish your budget;
• buy seasonal vegetables and fruits. During the season their prices are much lower. Use this factor to optimize costs;
• update your wardrobe at the end of the season. The opposite principle applies here, as in the proverb: “Prepare your sleigh in the summer.” The price of winter boots or a jacket in the spring will be significantly lower than at the height of the season.

Spending wisely is an effective way to manage your money wisely to save for a vacation or other purchase.

Another option for managing a family budget is the four envelope rule. Mandatory payments are subtracted from the total income. Part of the money is set aside for emergencies. The remainder is divided into four parts and spent during each week. This allows you to spend money rationally, plan large purchases and vacations in advance, without going into debt.

Assets

The use of these methods allows you to allocate resources to create monetary assets that will ensure and strengthen financial independence. Assets - funds designed to increase profits, are of three types:

• reserve - money that is used to solve force majeure situations;
• saving. Designed for large acquisitions;
• capital – funds aimed at increasing profits.

Spending money on various liabilities (gadgets, a car, regular payments, etc.) if you have one asset is wrong. When a person realizes this, he finds additional sources of income, begins to invest, invest money to make a profit. There are several options to use your money profitably:

Each type of income has its own advantages and disadvantages, requires certain knowledge and preliminary calculations, but the result is worth it.

The tips listed will help not only save money, but also increase your monthly income. Don’t expect instant enrichment; at first you will have to be patient and get used to the new budget distribution. However, within a few months you will see positive changes in your financial situation.

Finance is a complex but inevitable attribute of every person’s life. What financial myths need to be dispelled as soon as possible?

The lower your loan debt, the better your credit history.

If having a little credit card debt demonstrates that you're spending your money wisely, then having no debt at all has to be even better, right? It turns out not. If you don't use your card's credit feature, it's a good sign for your wealth, but not nearly as good for your credit score. Simply put, if you don't borrow anything, you aren't providing any information for the credit bureau to evaluate your creditworthiness. In this case, it is best to open a credit account, with which you can use such amounts that you can then cover it. Or you can take out a car loan, for example, and then make all your payments on time.

Always pay yourself first

Many experts recommend paying yourself first, that is, sending money to a savings account immediately after you receive your paycheck. The problem with this approach is that many people graduate with loans and debt before they even start working. If your savings are growing at a rate of one percent per month and your credit is growing at a rate of 18 percent per month, you won't get anything good out of this strategy. It's much better to pay off all your loans first, starting with those with the highest interest rates. And when you pay off the loan, experts advise continuing to send the set amount, but to a savings account.

Every type of debt is bad

Why do you need a loan? A student loan, a loan for start-up businessmen, a mortgage to buy real estate, a loan to buy a car to start a career - these are all investments in the future. The same cannot be said about a loan of ten thousand dollars, which is spent on visiting restaurants, buying fashionable clothes and purchasing modern gadgets. Experts agree that student loans are “good debt.” If you look at interest as covering the cost of money over a period of time, it will be easier for you to evaluate the advantages and disadvantages of a particular type of lending. A college degree will allow you to earn more over a forty-year career than you would spend on a loan. Does your new sweater increase in value over time or make you a better person? Do you really want to make payments on it for a whole year?

Coupons and promotions are great savings tools

Everyone has seen people using discount tracking apps with stacks of coupons and pantries filled with tons of groceries. Before you dive into coupon collecting yourself, think about two things. First, how much is your time worth? Do you really want to spend two or three hours every week cutting, filling out and sorting coupons, comparing prices at all the stores, driving to the other side of town? Secondly, are these really the products you want to buy? Is this really the best deal? Even with coupons and discounts, a popular brand's frozen pizza may cost more than a local store brand, even though the quality will be the same. Chances are, your favorite store has a customer loyalty program that can help you get the best prices, keep track of new discounts, and give you access to specific coupons for the products you buy most often.

Your credit history is confidential

Your financial information should be protected from prying eyes. However, a large number of people and firms have the right to look at your credit history: employers, insurers, homeowners, current and potential creditors, collection agencies, government agencies, and anyone who has a court order. In other words, people who can see your financial status include your boss, your social worker, or even your ex-spouse if he has a court order to do so. Unfortunately, it is not always easy to check whether someone who is not authorized to do so tried to look at your credit history, and whether they succeeded in doing so. The first step is to review your monthly account statement yourself and check the list of people who have requested access to your history for any unfamiliar names or company names. If you believe someone has accessed your credit report illegally, you can take that person to court.

Student loans don't affect your credit score.

This myth is partially true. If you have government student loan deferment, it will appear on your credit report as “paid as agreed.” It's a good news. The bad news is that if you have a deferment, you don't make any progress toward paying off the loan, so it just stays on your credit report, which can hurt your score over time. So, even if you have a deferment, you need to make at least small payments. Depending on the terms of the agreement, interest may accrue on the loan even though you may not make payments during the deferment. To help yourself, try to get the highest scholarships and all the financial aid you can, and never use your student loan money to pay for your life.

Investments are for the rich and experienced

Does the thought of Wall Street make you giddy? Do you think you need an economics degree to make money in stocks? Every financial expert will tell you that investing a portion of your savings in the stock market is a great way to grow your wealth. Remember that for ordinary people there are two key rules of investing. The first is to invest for the long term, so that even during market volatility, you can make a profit rather than panic and rush to sell all your stocks when it's a bad day on Wall Street. The second is to invest in index funds, which contain a variety of stocks and bonds, thereby reducing risks. You should register on one of the websites dedicated to investing, as there you will find a lot of instructions and guides for beginners in the stock market.

Every person needs to keep records of their budget.

This really is a great tool for a lot of people, and if you're budget efficient, it's great. However, budgeting may be too difficult for some people, such as those fresh out of university, or freelancers and sales agents whose income varies from month to month. Many people are not fans of the various tables and limits. If you are one of these people, you should not despair. There are those people who try to follow a budget, do it for two or three months, and then they start going crazy, they start hating it. As with any program (diet or exercise), if you don't like the idea, you won't enjoy the process and will quit and feel guilty afterwards.

Most people, to one degree or another, regularly experience problems with finances, attributing this to external reasons - rising prices, low wages and increasing expenses. All this takes place, however, there is another side of the coin, unreasonable spending of funds and the inability to competently regulate one’s needs in accordance with one’s capabilities. There is always a way out, and if you wish, you can learn not only to save, but also to strengthen your material well-being.

How to manage money correctly

We are always surprised why people with approximately the same level of financial income can live completely differently - some provide their family with a decent standard of living, while having some money savings, while others constantly live from paycheck to paycheck, get into debts and loans and complain about employer and the crisis in the country. The answer is simple - financial illiteracy leads to the fact that the majority have no idea how to manage their hard-earned money.

Abroad, special trainings and assistance from financial consultants who tell how. In our country, this practice began to appear only recently, but not everyone is ready to shell out a certain amount of money; it is much easier to use Internet services that teach how to plan a personal and family budget.

The most popular problem for the vast majority of families is the lack of proper control over expenses, because everyone wants to live, as they say, on a grand scale, without thinking about tomorrow. People spend everything they earn, and sometimes more, that is, they take on the burden of debts and loans. Thus, a financial hole arises, the spouses make serious purchases immediately after receiving the main income, without planning the budget in advance, so by the middle or end of the month they have to seriously save, refuse everything they need, or even worse - use the help of relatives, friends, a credit card. All this aggravates the situation; it is simply impossible to keep all expense items in your head; full-fledged home accounting is necessary, it will help you take into account profits and optimize expenses.

The massive introduction of the idea that one can and should live on credit has led to the fact that most of the population is in a financial hole and depends on bank loans and credit cards, the use of which leads to huge overpayments. Of course, there are lucrative offers from some organizations or force majeure situations, but most often families are guided solely by their desire to have everything at once, gaining dozens of loans over and over again.

Basic rules will help you manage your finances wisely:

• Never overpay for a product after studying the pricing policy in advance.
• Feel free to take advantage of discounts, promotions and bonuses. It's your money, if there is an opportunity to save it, then why not? Learn to bargain in the markets.
• Buy only those things that you can afford to buy at the moment. Plan for the essentials, leaving expensive items or services for last.
• Control your emotions, do not fall for enticing advertising and promises of interest-free installments.
• Buy what you came to the store for and don’t make spontaneous purchases.
• Wholesale is always cheaper. Some products are more profitable to purchase in large quantities.
• Don’t chase fashion and don’t be fooled by the opinions of friends and colleagues, that’s what advertising is designed for.
• Prices largely depend on seasonality, for example, fresh fruits and vegetables are always cheaper in season, and clothes are sold at the end of the season at bargain prices.

Proper implementation of all the rules will allow you to save significantly, and save your savings in case of a critical situation, make a profitable investment or make a major purchase.

What to do if you don't have enough money

To forget once and for all about the catastrophic lack of money, just follow three simple steps. Even control over one of these principles will allow you to get rid of debts and move to a higher level of material well-being, but if your goal is not only to preserve what you have earned, but also to increase your capital, you should take all three tips seriously.

Spend only real money

Living within your means is quite simple, the question is whether you will feel comfortable in this situation if you are already accustomed to a beautiful life. Moderating your ambitions and tightening your belt is what you should work on first, after which you can be puzzled by the question of how to earn more and satisfy all your needs.

Many people use the 4 envelope rule to do home accounting. It consists of dividing the entire monthly budget into several parts. First, we separate from the total amount the finances intended for mandatory payments (rent, kindergarten, debts and loans, etc.), then we set aside a part that will form a financial cushion, the rest of the money is divided into 4 equal parts, they are spent within a week .

This financial approach does not mean that you will deprive yourself of everything, but it is an opportunity to learn to look into the future and plan large purchases in advance without getting into credit bondage. An important nuance - try to teach your children the basic rules of spending, so it will be easier for them to navigate the adult world.

Provide yourself with additional income

The second principle of improving your own well-being is not only to reduce expenses, but also to increase income. Here are some real ways to achieve what you want:

How to live economically

The third rule is, of course, the ability to rationally spend profits, not allowing yourself ill-considered expenses. A major expense item for any family is food, household goods and clothing. on their purchase not to the detriment of health?

• Before you go shopping, make lists and follow them religiously. If suddenly you have a strong desire to purchase an item that is not in it, postpone the purchase until the next day. Perhaps tomorrow you will understand that you were guided only by emotions and you do not need the product.
• Plan your menu for the week. Write down the necessary ingredients to buy, as well as drinks, snacks and sweets, so you know how much of your household budget is food.
• Having made a list, you will roughly decide on the amount you need to take to the store; you should not significantly increase the limit, or take a credit card.
• Don’t go to the store hungry, so as not to buy something extra, which is usually tasty, but harmful.
• Some things, such as underwear, socks, cosmetics or toys and even household appliances can be purchased through an online store, joint purchases or wholesale warehouses, which will save your time and money.
• If you live in a private house with a garden plot, it would be more logical to grow vegetables and herbs on it, rather than buy in stores and markets, while expensive pickles and jam will be on your table all year round.
• Save on “chemicals”; some advertised dishwashing detergents, liquid soap, and toilet paper are not much different from their cheaper counterparts.
• For a while, give up going to restaurants or coffee shops; after all, you can easily prepare the same thing at home.

Rich is not the one who earns a lot, but the one who knows how to manage money. You can learn to manage your funds. Once you learn the basics of saving, you'll be surprised how much money you manage to save. Learn to control expenses.

People manage their personal funds differently. Some know how to manage their earned money, and 20 thousand rubles a month is enough for them, while others do not know how to manage money, and a salary of 70 thousand is not enough for them.

The ability to manage money is a whole science. It is not for nothing that in Western countries there have long been special agencies that provide services called “Money management” - assistance in managing money.

Most of us, of course, are not able to turn to such agencies for services. But we can take advantage of smart advice and understand how to spend money. And so, how to learn how to spend money correctly.

Control your expenses

One common problem is that many people try to live without taking into account their actual income. For example, if you “break down” their earnings point by point, it will become obvious that they cannot afford to visit an expensive restaurant three times a month.

However, they still spend money on it. As a result, 7-10 days before payday, they have to borrow money, because there is simply no money - there is nothing to buy groceries, refuel the car, top up their mobile phone account, etc. At the end of the month, they have to practically starve.

First, calculate all your fixed expenses for the month. These are payments for utilities, Internet, communication services, payments on existing loans, transportation costs, and lunches.

Secondly, add the planned “unavoidable” expenses to the amount received - for example, a trip to the dentist or hairdresser.

Thirdly, we subtract the received amount from your monthly income, and divide the remainder into two parts. The first part you allow yourself to spend. You put the second one “in your stocking” (in a safe, for a deposit, etc.), and the more you manage to save, the better your financial affairs are and the higher the chances of “not drowning” if hard times come.

Today on the Internet you can find dozens of home accounting programs that will teach you how to manage money. One of the most common is Family 10.

Get out of debt and stay out of it

Debt is a scary thing. Both because they put pressure on us psychologically, and because we are forced to work for debts instead of enjoying life.

Therefore, borrow only in the most extreme cases, apply for loans only after carefully weighing and analyzing your capabilities (a loan is also a debt, only to the bank) and only in special situations (for example, buying an apartment - without a loan you will have to collect about 20 years).

In all other cases, refuse loans and any loans, managing on your own. Do you want a new car? Save up. Are you thinking about upgrading your computer software? Save up. Apartment renovation? Save up. Overseas vacation? Save, save and save again.

Be pragmatic

A financially successful person always manages his money wisely, no matter how much he earns. He always gives preference to budget solutions and never overpays.

Neither for brands, nor for brands. But do not forget the well-known truth - “The miser pays twice,” which warns us that we need to save wisely. By chasing only the cheapness of a product, you can greatly lose in quality, which will entail additional costs.

A pragmatic approach to life is something you need to learn. Don’t act like a child in the store, shouting “I want it!” Want! I want!”, but to be able to stop and concentrate on current goals (since I need a jacket, it means that today I will only buy a jacket, despite the fact that there is a 30% sale in the shoe department).

Although it may seem like a good idea to buy shoes at a discounted price, in reality, if you already have a ton of shoes, shoes and boots, you will simply be throwing money down the drain.

Try writing down absolutely all your purchases for a month. After 30 days, sit down and calmly think about what you can cross off from this list. You will be horrified at how many unnecessary things you have acquired during this time.

Monitor your emotions

The biggest enemy that can cause significant damage to your finances is emotions. When you work a lot, and the situation does not change, the only joy is acquiring things for yourself that can add variety to your everyday life.

By buying new products, you give yourself a kind of emotional injection, the duration of which is limited. This is what Miguel de Cervantes advised on this matter: “Let your business be self-knowledge - the most difficult science in the world.” Get to know yourself and what drives you to spend any kind of money - be it cars, fashionable outfits, fashionable trinkets.

This is the most important step that will help you learn how to manage your finances. It also helps to think about the difference between a million dollars saved for retirement and zero savings.

More often than not, purchases that we make on impulse bring us little joy and do not in any way improve or enrich our lives. Just think about it a little and you won’t make the same mistake again.

Don't follow the lead

As Will Rogers so aptly put it, “Too many people spend money they don’t earn on things they don’t need, all to impress people they can’t stand.”

Very often in our spending we follow someone else's lead. Did your friend buy a new bag? So I need it too! The neighbors went to Goa - and I want to! My cousin drives a brand new jeep, but when will we stop driving an old BMW? Looking up to others and the desire to please them greatly interferes with our plans and poses a danger to the family budget.

Principles to help you spend your money wisely

Buy in bulk

Real money savings can be achieved by purchasing goods in bulk. All rich people do this because they know the value of money too well.

Bargain and demand a discount