How to handle money in order not to live from paycheck to paycheck

Do not get into debt

There are a lot of temptations in life. Each time, seven times, think whether to take another loan. The correct answer is "Do not take!". Do not buy what you cannot afford. To do this, you need to develop certain control and containment skills. When you put personal finances under control, you will have a very nice bonus - to make expensive purchases without loans. At the expense of own funds. Not a bad incentive, right?
Save money

“Putting aside money is a compromise. You take a little bit away from your today to improve your tomorrow, ”- Bodo Schäfer.

You need to learn to "pay yourself." That is, to fix a certain part of the monthly cash income in personal "stabilization funds" or with the help of good habits:

1. Personal pension fund. Long-term deposit with capitalization of interest. Here we allocate 5-7% of monthly income. In the future, you will be very grateful to yourself, 20 years ago who made the decision to postpone a comfortable old age.

2. Personal insurance fund. This is your fund for various contingencies. We allocate 10-15% of monthly income to it.

3. The habit of “purse of greatness” or “piggy bank”. The principle of use is as follows:

    every time you need to pay someone, 10% of the money is taken from the amount necessary to pay;
    put them back in the purse of greatness.

For example, you need to pay 400 conventional units of money. This means that in the main wallet there should be 440, of which you first take 40 and transfer them to your "wallet of greatness" with the words: "I'm rich! I am strong! I can!". Supporting and praising yourself is crucial. We must like habits.

But what if there are only 400 conventional units of money? Either postpone 40 and make a purchase for 360, if possible, or do not buy.
Create additional sources of income

Another very important rule of money is to create assets. Assets in this sense are sources of constant passive income. The more such sources you have, the greater the cash flow they will generate.

The most common asset options:

    Stocks.
    Bonds.
    The property.
    Patents, copyrights, intellectual property.
    Web sites and blogs. Not necessarily popular.
    Promoted publics on social networks.

Count your money

Money loves counting. You need to learn to count all your personal or family income and expenses. If you want to take control of your finances and create the conditions for a continuous increase in wealth, you will have to do it.

Wages (and incomes in general) are less manageable than our expenses. Post income and expenses daily. Analyze and optimize expense items. It is possible to conduct such bookkeeping in Excel. But there are many programs and mobile applications to automate this process. As a conclusion, after optimization, you should start making a budget and stick to it clearly.

The main and only rule is to spend money wisely. Do not succumb to the insidious temptations to buy a useless thing, fight with laziness and do not miss the best offers. With this approach, you do not have to rummage through the pockets of a winter jacket, hoping to find 50 hryvnias. Although it is always nice!
Clean up negative financial settings

A large number of incorrect negative attitudes connected with money, as well as habits programming for poverty, can be sewn into your head. They can be caused by education, traits of your character, negative personal experience.

Your goal is to consciously replace them with positive, positive ones. It's simple - to make money love you, you need to love it. This is also the rule of money!
Do not skimp on insurance

Everything happens in life: houses burn, there are accidents, etc. Do not waste time, insure yourself against the main risks.
Give part of your money to charity

The more you give, the more you get - this law of the universe really works! It is ideal to give another 10% of your income for these purposes. But you can start with 1%. Sacrifice must be learned voluntarily and with a light heart.
Invest in your development and training

Including financial education. Indeed, everyone can learn to manage cash flows and the proper investment of their funds. And the sooner you start, the faster the positive effect will come.
Treat money as a tool, not the main goal

A characteristic feature of many true millionaires is the lack of a cult of money. They just go to their goal, and money is just a pleasant bonus for them along the way.

“Love what you do, don’t stop developing professionally, and wealth will come to you, sooner or later,” writes Thomas J. Stanley in The Millionaire Mind. It’s hard to argue with that.

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