How to properly manage money when there are few of them. Family budget
5 valuable tips on how to properly manage your money. Read useful information and share with your friends!
Today we will talk with you on a burning and slightly indecent topic ,.
If you paraphrase the famous cartoon character, you get something like the following rhyme:
Money is a very strange subject:
Here they are, and now they are gone.
And the truth is, no matter how much you earn, very little time passes after the paycheck, and now you are already watching with horror that there are a couple of unfortunate hundred-dollar bills left in your wallet, and there are still 10 days before the advance payment.
Well, how does that happen? After all, I did not spend on anything superfluous!
Have you ever gone to a cafe with friends?
You can't lead the life of a hermit at my age.
Have you bought a beautiful dress?
So I needed a formal day dress.
Did you leave a lot of money in a cosmetics store?
So I'm a girl.
And so on ad infinitum!
We do not understand that such excuses only harm: we do not draw conclusions, do not learn from our mistakes, but continue to make rash spending, complaining about a small salary.
So, spenders, today I got you on specific example I will teach how to properly manage money.
Why is my friend good at managing money?
I have a student friend Marina.
She is from a poor family, after graduation she got a job in a museum, where salaries are more reminiscent of tips, she early married a man whose salary is also far from perfect.
But Marina has one peculiarity: she never complains about the lack of money, dresses and eats well, and does not forget about entertainment.
In general, this makes me want to ask, "Where's the money from ?!"
Once I could not resist and asked: “Marina, how do you manage to manage your money in such a way that it seems that there is enough for everything, but at the same time I know that your family income rather modest. "
Marina smiled and said: “I polished the distribution scheme for 5 years until I brought it to perfection. Do you want me to share her secrets with you? "
Naturally, I wanted to!
Marina began her master class with general tips, adhering to which you can properly manage money:
Balance your income and spending.
At the initial stage, you can even keep records: received so much, spent so much, such and such expenses can be cut in the next month.
Gradually, you will learn to save.
Live within your means.
You can afford an expensive thing - buy, no - look for a cheaper analog, but don't live pipe dreams wasting money.
For example, Marina's daughter-in-law has been dreaming for 10 years of how she will rebuild an apartment, make luxurious repairs there, but she continues to live in the stable, because her project costs the same as her apartment, and she does not save and put off knows how and does not want to learn it.
Marina made repairs in their private house, which is modest and inexpensive, but her home looks cozy.
Don't be afraid to look for additional ones.
In your free time you can earn extra money (Marina, for example, copyright), and sell unnecessary things at online auctions, such as Aukro.
Save on everything you can save on.
This does not mean that you need to turn into a curmudgeon and deny yourself everything, but if you see two almost identical blouses, but the other costs twice as much just because of the illiterate inscription on it, laid out with rhinestones "Dolce and Kabana", then why pay more?
Spend leisure time with people of your equal financial standing.
We do not let the unlucky come into our lives, but it is not worth rubbing into the trust of the rich either.
You still won't pull their entertainment.
We properly manage money for shopping and leisure
Our life is made up of compulsory and optional purchases.If you can save on the latter, pampering yourself only sometimes, then you will have to buy shoes, groceries, household goods, appliances, household chemicals in any case.
Yes, and you need to have fun, otherwise it will not be life, but boredom.
Here's how to properly manage your mandatory spending money:
Clothes and footwear.
You can save money if you constantly monitor sales.
For example, Marina has several favorite stores that cut prices by half or more during sales.
Online stores are also great help out, where branded items are sold without extra charges.
Products.
First, do not shop in small shops, where prices are always higher than in supermarkets, the assortment is scanty, and they do not know the word "discount".
Secondly, there are wholesalers.
If you have storage space, then sugar, flour, salt, pasta can be purchased in bags.
Third, pay attention to stocks: "price of the week", "hot offers", "two for the price of one", etc.
The same tricks can be done with household chemicals.
Time these purchases for the holidays.
For example, everything you need can be purchased during the New Year's sales.
Entertainment.
First, if you have no money, then do not be afraid to refuse your friends their invitation to visit a nightclub.
You do not need to run to a neighbor to have money and immediately take it away.
Real friends will understand the refusal, but you don't need fake ones.
Secondly, having fun does not mean hanging around in restaurants for days, squandering large sums.
Look for a sensible and inexpensive alternative: a walk in the park, a picnic in the woods, a theater trip, open-air concerts, a zoo, etc.
Learn to do the best with your own hands, and not go to specialists for any trifle.
For example, you can make cosmetic repairs yourself by inviting friends and treating them to a delicious dinner afterwards.
And one last thing: whatever your salary, learn to set aside some of it.
You can do it the old fashioned way, using a piggy bank, or you can also through bank deposits.
Marina says that she likes the "Piggy bank" function of PrivatBank: every time a salary arrives on the card, the specified amount is transferred from it to the piggy bank. For a year, Marina, with her help, was able to put on a sheepskin coat.
And here are a few more useful tips on the topic of,
how to manage money.
Watching the video:
Comprehend the art how to properly manage money, not so difficult, just learn to live within your means, save, and if necessary - find additional sources income.
There is nothing wrong with that.
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The ability to manage your day correctly is the path to financial independence and well-being. But how do you make money work for you? Where and how to invest "hard-earned money" to get rich?
Agree, not knowing the route, it is at least stupid and dangerous to set sail even on the newest ship. Underwater reefs can "pierce" your boat, and you will find yourself on a desert island, lost in the endless deep ocean of investment. Without a clear plan on how to manage family money, one cannot hope for a reliable "rear" and financial security.
We all know very well that expenses need to be planned, and everyone does it as best they can. But not everyone thinks about the future and ensuring the financial independence and stability of the family, spending every penny and not making any savings. Many live only with thoughts of how to give and take a new one. Meanwhile, you need to save savings even if minimum income... And when you realize that you have saved up for a "safety cushion" that will save your family from life's vicissitudes and surprises, you will certainly want to increase this amount. And a natural question arises in my head: how to make money work and multiply quickly and without much risk?
It will be interesting for you to immediately familiarize yourself with:
The first rule of money management - divide by 60% and 40%
Remember how often you succumb to the spontaneous desire to buy something you like simply because your day is not going well, a bad mood or the acquisition of a girlfriend just does not leave you alone. These can be things for yourself, such as glamorous (dress, women's dress), or for the house, for example, new roller shutters for windows, or whatever. Some of these spontaneous things really come in handy, and some just weigh and take up space. They are what we are talking about. True, immediately after the purchase, the mood improves, but then disappointment comes from the realization that the money was thrown into the wind. But the situation repeats itself over and over again.
In order to properly manage money, reasonable people apply the 60% rule. It is extremely simple, but it is not so easy to apply it to your own budget in practice. The bottom line is that your monthly living expenses do not exceed 60 percent of your income.
This should include the necessary expenses for food, only the necessary clothes and cosmetics, payment of utility bills and petty expenses on the road, gasoline and Unexpected situations... With this approach, you will have 40%, 10% of them will go to the cherished reserve fund, and 30% on investments, that is, to make money work for you.
Of course, everyone has their own plans for the future, but what you really need to think about is a decent 10% increase on such a distant pension. In our time, you cannot be sure of anything, and a well-paid job today does not at all guarantee a comfortable old age. And by taking care of her now, you will ensure yourself a well-deserved rest, no worse than that of the happy American old people, whose faces flaunt in advertising brochures.
The main thing in this business is to choose the right way to store your savings. The "envelope" between the books is not an entrance in this case. Sooner or later, inflation will eat up your savings. In addition, there is always a temptation to spend them on something very necessary, and then report ... Which, as a rule, does not happen. So that the money is not spent, invest it in securities or select reliable bank and open an account there. Use the services of a non-state pension fund, in general, there are enough options.
Smart Risk - Teach Your Money to Work for You
Not everyone who wants to get rich has a track record of managing their money properly in the field of investing. Therefore, there is always the risk of financial loss or, even worse, collapse. But deliberate and balanced actions will reduce this possibility to a minimum. More often, investors over the years of work have eaten out the rule of "falling asleep points". The sleep point is the limit at which the investor is deprived of sleep, fearing to lose more than he can afford.
To achieve the desired wealth without any problems, you need to follow simple principles.
First, have the information you need. Before linking your financial affairs to a particular bank, gather as much information as possible about it. Any detail is important: how old is it, what are the reviews of depositors, find out all the nuances of the future agreement, compare and analyze the selected bank in the rating of others like it. Notice how the bank employee reacts to the questions you ask him. If he answered them clearly, thoroughly and confidently without grimacing and evasion, this is another plus to your choice. If you are faced with nervous and "bustling" behavior - go to another bank, (fortunately, the choice banking institutions is large enough today).
Secondly, those who know how to manage money never put every penny in one, even the most reliable, “basket”. Knowledgeable financiers will advise you to diversify your investments, that is, all the money intended for financial transactions, need to be split into several different attachments.
One of the most simple and familiar examples is currency exchange. Many exchange national currency in euros and dollars in order to protect existing savings from inflation and not lose on a jumping exchange rate... To make money work for you, open accounts with several banks for this purpose. Then, in the event of the collapse of one, the others will safely store the amount you earned.
Another option to increase your savings and reduce the risk of losing them is different ways investing. For example, keep a quarter of the amount in a deposit account. Invest another quarter in securities. Spend the rest on purchasing real estate.
The desire to get rich and have a lot of money is not at all immoral, on the contrary. who knows exactly what he wants and what he strives for - a strong personality, before whom a lot of possibilities are open. So why don't you take this chance?
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 a small amount of credit card debt demonstrates that you are spending your money wisely, then no debt at all should be even better, right? It turns out that no. Not using your card's credit function will be a good sign for your well-being, but not nearly as good for yours. credit history... Simply put, if you don’t lend anything, then you don’t provide any information for credit bureau to assess your creditworthiness. In this case, it is best to open a credit account with which you can use the amounts that you can then cover. Or you can take, for example, a car loan and then make all payments on time.
Always Pay Yourself First
Many experts recommend that you pay yourself first, that is, send money to a savings account immediately after you receive your paycheck. Problem this approach is that many people graduate from university with loans and debts, and yet they have not even started working. If your savings are growing at the rate of one percent per month and your credit is growing at the rate of 18 percent per month, you will not get anything good from this strategy. It is much better to pay off all your loans first, starting with the ones with the highest interest rate... And when you pay off the loan, experts advise you to continue sending the set amount, but this time to a savings account.
Every kind of debt is bad
Why do you need a loan? A student loan, a loan for business start-ups, 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 for a ten thousand dollar loan spent on dining out, buying fancy outfits, and purchasing modern gadgets. Experts agree that a student loan is “ good debt". If you look at interest as covering the value of money over a period of time, it will be easier for you to assess the advantages and disadvantages of a particular type of lending. Diploma of higher education will allow you to earn more in a forty-year career than you would spend on credit. Does your new sweater increase in value over time or makes you look more a good man? Do you really want to make payments for 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 collecting coupons yourself, think about two things. First, how much is your time worth? Do you really want to spend two to three hours each week cutting, filling and sorting coupons, comparing prices in all stores, driving to the other side of town? Second, are these really the products you want to buy? Is it really Best offer? Even with coupons and discounts, a popular brand's frozen pizza can cost more than a local store's brand name pizza, even though it doesn't differ in quality. Most likely, your favorite store has its own loyalty program for customers, thanks to which you can get the best prices, conveniently track the emergence of new discounts, and which will also give you access to specific coupons for the products you most often buy.
Your credit history is confidential
Your financial information should be protected from prying eyes. However, a large number of people and businesses are allowed to view your credit history: employers, insurers, homeowners, current and potential lenders, collection agencies, government agencies, as well as everyone who has a court order in their hands. In other words, among people who can see your financial condition, there is your boss, social worker or even your former spouse if he has a corresponding court order. Unfortunately, it is far from always easy to check whether someone who is not allowed to do this has tried to look at your credit history, as well as whether he was able to do it. The first thing you need to do is go through your monthly account statement yourself and check the list of those who requested access to your story for unfamiliar and company names. If you believe that someone has access to your credit history illegally, you can sue that person.
Student loans do not affect your credit history
This myth is partially true. If you have a government student loan deferral, this will appear as “paid by agreement” in your credit history. This good news... The bad news is that if you have a grace period, then you don't make any progress towards paying off the loan, so it just stays in your credit history, which can degrade your rating over time. So, even if you have a grace period, you need to make at least a small amount of payments. Depending on the terms of the agreement, interest on the loan may accumulate even if you do not have to make payments during the grace period. To help yourself, try to get the highest scholarship and all the possible financial aid and also never use your student loan money to pay for your life.
Investment is for the wealthy and experienced
Does the thought of Wall Street make you dizzy? 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 stock market- it great way increase your fortune. Remember that for ordinary people there are two key investment rules. The first is to invest in the long term, so that even in times of volatility in the market, you will be able to make a profit, and not panic and rush to sell all your shares when there is a bad day on Wall Street. The second is to invest in index funds, which contain various stocks and bonds, thereby reducing risks. You should register on one of the investment sites, as there you will find many instructions and guides for newcomers to the stock market.
Every person needs to keep records of their budget.
It really is a great tool for a lot of people, and if you're using your budget effectively, that's great. However, the budget can be too daunting for some people, such as those who have just graduated from university, or for freelancers and salespeople whose income varies from month to month. Many people are not fans of different tables and limits. If you are one of those people, you shouldn't despair. There are those people who try to follow a budget, do it for two to three months, and then go crazy, they start to hate it. As with any program (diet or sports), if you are not attracted to this idea, you will not like the process itself, and you will quit it, after which you will feel guilty.
Today we have to figure out how to spend money correctly. This topic is of interest to citizens of all countries. And all the time. After all, money is a means of subsistence. And they should provide the citizens as much as possible. Not everyone knows how to properly dispose of them. And even more so how to postpone. When you have your own family and children, the issues related to finances are seriously aggravated. To prevent this from happening, you just need to be able to spend money. How can I learn this? What will help you save money and manage your family budget? Top Tips and recommendations will be presented below. All of the above is not a panacea, but it will help not to waste money. In some cases, it will turn out to spend less and save more, while not prejudice to yourself in purchases.
Family budget is an eternal dispute
Maintaining a family budget is a real art that not everyone can master. But to master it, at least to try to do it, is recommended for every person. When done correctly, problems are not terrible. They simply will not exist. Except when the salary is delayed. And then the scale of the problems will be minimal.
Very good way saving and creating savings. Many, as already mentioned, are recommended to open a deposit in a bank and transfer money there. This will help not to touch the funds and save them. In any case, it must be in difficult access. Only in emergency situations is it allowed to spend this accumulation.
Plan and facts
What is the right way to spend money in a family? For those who have already mastered the previously listed methods, you can slightly expand the table of income and expenses. And add such components as "plan" and "in fact" to it.
In the first column, it is necessary to prescribe in advance what expenses are planned and for what amount. In the second, information about real costs is entered. Quite an interesting way of planning " free money"It is recommended that the column" in fact "be reduced monthly. In the same way as the section" plan. "
"No" loans
How to spend less money? Some people think that loans are a good way to save money. In fact, most citizens who have learned to live within their means, as well as to save well, say the opposite.
Taking loans when planning a budget is not recommended. However, you do not need to exclude them from the pivot table if available. Lack of credit is a positive outlook. If a person does not have debts, then the previously paid amount can be set aside for a rainy day.
Personal needs
What is the right way to spend money? Some people don't understand this. If it comes about one person, then there are no special problems with budget planning. But as soon as a family appears, certain difficulties arise, as already mentioned.
The point is that everyone has personal needs. What each person wants for himself personally. During training in planning and conducting home accounting, you need to overshadow your desires.
By the way, all "free" money at the end of the month is recommended to be distributed among family members for personal needs. Or enter separate columns in the expense and income accounting table for this purpose. Allocate a firm sum of money to everyone for their desires.
Example
This is how it is correct to manage the family budget. The example table below is far from the most advanced method. Rather, it is suitable for beginners. Through it, you can easily learn how to distribute finances so as not to fall into a financial hole.
An approximate table of expenses and income looks like this.
Article | Plan | Fact | Difference |
Income | 50 000 | 50 000 | 0 |
Products | 10 000 | 11 500 | -1 500 |
Communal payments | 5 000 | 4 500 | 500 |
Household chemicals | 1 000 | 0 | 1 000 |
Personal needs | 5 000 | 8 000 | -3 000 |
Travel | 10 000 | 7 000 | 3 000 |
Outcome | 31 000 | 31 000 | 0 |
Postponed | 5 000 | 5 000 | 0 |
This, as already mentioned, is far from the most common option for accounting for expenses. But it helps at first. In general, planning a home budget is a crucial moment. And it is recommended to entrust this lesson to those who do it best. A little patience and strength - and you can easily learn how to distribute cash and also good at saving.
Most people, to one degree or another, regularly experience financial problems, attributing this to external reasons - higher prices, small wages and increased costs. All this takes place, however, there is another side of the coin, unreasonable waste of funds and the inability to competently regulate their needs in accordance with the possibilities. There is always a way out, and if you wish, you can learn not only to save money, but also to strengthen your material well-being.
How to properly manage your money
We always wonder why people of approximately the same level financial income can live in completely different ways - some provide the family with a decent standard of living, while having some cash savings, while others constantly live from paycheck to paycheck, get into debts and loans and complain about the 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 money.
Special trainings and assistance are very popular abroad. financial advisers that tell you 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 overwhelming number of families is the lack of proper control over expenses, because everyone wants to live, as they say, in a big way, without thinking about tomorrow. People spend everything that they have earned, and sometimes more, that is, they shoulder the burden of debts and loans. Thus, a financial hole arises, the spouses make serious acquisitions immediately after receiving the main income, without planning the budget in advance, so by the middle or the 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 the items of expenditure in your head, full-fledged home bookkeeping is necessary, it will help to take into account profits and optimize expenses.
The massive introduction of the idea that it is possible and necessary to live in debt has led to the fact that most of the population is in financial hole and depends on bank loans and credit cards, the use of which leads to huge overpayments. Of course, there are also 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.
Elementary rules will help you manage finances competently:
- Never overpay for a product, having studied the pricing policy in advance.
- Feel free to take advantage of discounts, promotions and bonuses. This is 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 bare essentials, leaving expensive items or services for last.
- Control your emotions, do not succumb to inviting advertisements and promises of interest-free installments.
- Buy what you came to the store for and do not make spontaneous purchases.
- Wholesale is always cheaper. Some goods are more profitable to purchase in bulk.
- Do not chase after fashion and do not get fooled by the opinions of friends and colleagues, this is what advertising is designed for.
- Prices depend a lot 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.
Competent implementation of all the rules will allow you to save a lot, and put off your savings in case critical situation, make a profitable investment or make a major purchase.
What to do if there is not enough money
To forget about the catastrophic lack of money once and for all, it is enough to follow three simple steps. Even control over one of these principles will allow you to get rid of debt and move to a higher level of material well-being, but if your goal is not only to preserve earned money, but also to increase 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 used to a beautiful life. Moderating your ambitions and tightening your belt is what you should work on first of all, 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 for home bookkeeping. It consists in dividing the entire monthly budget into several parts. First, we separate from total amount finances intended for compulsory payments (rent, Kindergarten, debts and loans, etc.), then we set aside the part that will form the financial cushion, the rest of the money is divided into 4 equal parts, they are spent during the week.
Such a financial approach does not mean at all that you will deprive yourself of everything, but there 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 the elementary rules of spending to your children, so it will be easier for them to navigate the adult world.
Provide yourself with extra income
The second principle of improving one's own well-being is not only to reduce expenses, but also to increase income. Here are some real-world ways to get things done:
How to live frugally
The third rule is, of course, the ability to rationally spend profits, not allowing yourself ill-considered expenses. A large item of expenditure for any family is food, household goods and clothing. buying them not to the detriment of health?
- Before you go shopping, make lists and follow them steadily. If you suddenly have a strong desire to buy something 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 ingredients you need to buy, as well as drinks, snacks, and sweets, so you know how much of your household budget is food.
- Having compiled a list, you will roughly decide on the amount that you need to take to the store, you should not significantly increase the limit, as well as take a credit card.
- Do not go to the store hungry, so as not to buy something extra, 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 wholesalers, which will save you time and money.
- If you live in a private house with a backyard, it would be more logical to grow vegetables and herbs on it, and not 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, toilet paper are not much different from their cheaper counterparts.
- For a while, give up going to restaurants or coffee shops, in the end, you can easily cook the same at home.