The ability to spend money correctly is the key to financial independence and stability. This is a real art that anyone can understand. It takes endurance and discipline, but the results are worth it. Many people think that financial difficulties depend on external factors, low salaries, crisis, but this is only one of the components of the problem. It's all about the inability to spend money wisely. Wealth does not come overnight, unless you win the lottery or were born into a millionaire's family. To become financially independent, you need to develop, improve, read the relevant literature, change your thinking.
Financially literate people feel comfortable even with small salaries, while others go into debt with stable, high incomes.
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 they return, multiply and work for you.
The main problem most people face is runaway spending. Financial instability occurs when all the money that is earned is spent. If the expense exceeds income, a financial hole is formed, debts appear. People who do not control their spending are constantly short of money. As a rule, already a few days before the paycheck, they have to “tighten their belts” or even use consumer loans, which aggravates the situation even more.
Carrying out calculations in your mind, it is impossible to learn how to properly manage money in the family, to accurately control expenses. To do home bookkeeping, determine where and how much money is going, and then analyze the costs. It is easy to do this in a notepad, where all the amounts are entered:
In order to spend money sparingly, financially literate people apply the 60% principle. It lies in the fact that the monthly expense should not exceed 60% of the total income. This includes mandatory, unplanned payments for unforeseen events. Of 40% of the total, ten remain in the reserve fund, and 30% go to investments that will bring profit in the future.
Another factor that negatively affects family budget planning. The variety of loans, the proliferation and availability of fast money have led to a life of "debt". A person falls into a financial hole, which is more difficult to get out of every day. Buying something for which there is no actual money, people overpay, and the more profitable and simpler the terms of the loan, the greater the amount of the overpayment. Of course, there are situations when a loan is needed for business development or in conditions of force majeure, for serious acquisitions. When it comes to the momentary "I want" and a loan is issued for the purchase of gadgets, a wedding or vacation - this is financial illiteracy. The number of families with multiple loans is no longer uncommon. They are forced to enter into new credit agreements to close past debts. The problem is not a small salary or external factors. Also you can use carders forum.