How to manage money when it is not enough. Family budget
5 valuable tips on how to properly manage your money. Read useful information and share with friends!
Today we will talk with you on a burning and a little indecent topic.
If you rephrase the famous cartoon character, you get something like this rhyme:
Money is a very strange thing:
Here they are, and now they are gone.
Indeed, no matter how much you earn, it takes a very little time after the salary, and now you are horrified to see that there are a couple of unhappy hundred bills in your wallet, and 10 days before the advance.
Well, how is that? After all, nothing was wasted on anything!
Once went to a cafe with friends?
So you can’t lead a life of a hermit at my age.
Bought a beautiful dress?
So I needed a formal outfit.
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 expenses, complaining about a small salary.
So, squanders, today I’ll teach you a concrete example, how to manage money.
Why does my friend manage money properly?
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 like tips, she married an early man whose salary is also far from perfect.
But Marina has one feature: she never complains about a lack of money, dresses well and eats, and does not forget about entertainment.
In general, this causes a desire to viciously ask in such a way: "Where does the money come from ?!"
Once I could not stand it and asked: “Marina, how do you manage to manage your money in such a way that everything seems to be enough, but at the same time I know that your family income is quite modest.”
Marina smiled and said: “I polished the distribution scheme for 5 years until I brought it to perfection. Do you want to share her secrets with you? ”
Naturally, I wanted to!
Marina began her master class with general tips, following which you can properly manage your money:
Balance your income and expenses.
At the initial stage, you can even keep records: so much has been received, so much has been spent, such and such expenses can be cut back next month.
Gradually, you will learn to save.
Live within your means.
You can afford an expensive thing - buy, no - look for an analogue cheaper, but do not live pipe dreams, wasting money.
For example, Marina’s daughter-in-law has been dreaming for 10 years about how she will remodel the apartment, make luxury repairs there, but she continues to live in the stable, because her project costs the same as her apartment, and she doesn’t save and save knows how and does not want to learn this.
Marina made repairs in their private home modest and inexpensive, but her home looks cozy.
Do not be afraid to look for extra.
In his 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 miser and deny yourself everything, but if you see two almost identical blouses, but the other costs twice as much only because of the illiterate inscription on it laid out by Dolce and Boar strass, then why to pay more?
Spend leisure time with people of equal financial standing.
We do not allow losers to our lives, but we should not rub ourselves into the rich in trust.
You still don’t pull their entertainment.
We correctly manage money for purchases and leisure
Our life consists of compulsory and optional purchases.If you can save on the latter, spoiling yourself only occasionally, then you will have to buy shoes, products, 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 manage your mandatory spending money:
Clothes and shoes.
You can save if you constantly monitor sales.
For example, Marina has several favorite stores, which during the sales period drop prices by half or more.
Online stores where brand-name items are sold without extra charges can also help out.
Products
Firstly, do not make purchases in small shops, where prices are always higher than in supermarkets, the assortment is scanty, and they don’t know the words “discount”.
Secondly, there are wholesale bases.
If you have a place to store, then sugar, flour, salt, pasta can be purchased in bags.
Thirdly, pay attention to stocks: “price of the week”, “hotter than offers”, “two for the price of one”, etc.
The same tricks can be done with household cleaning products.
Arrange such purchases for the holidays.
For example, everything you need can be purchased during the New Year sales period.
Entertainment.
Firstly, if you do not have money, then do not be afraid to refuse friends on their offer to visit a nightclub.
You don’t need to run to a neighbor to have money and skip it right there.
True friends will understand the denial, but you don't need fake ones.
Secondly, to have fun does not mean to hang around in restaurants for days, spending large amounts of money.
Look for a reasonable and inexpensive alternative: a walk in the park, a picnic in the forest, a trip to the theater, open-air concerts, a zoo, etc.
Learn to do the maximum with your own hands, and not turn to specialists for any trifle.
For example, redecoration can be done by yourself, by inviting friends and treating them after a delicious dinner.
And the last: whatever your salary, learn to postpone part of it.
It is possible in the old fashioned way, using a piggy bank, or it is possible through bank deposits.
Marina says that she likes the “Piggy Bank” function of PrivatBank: every time a salary comes to the card, the indicated amount is transferred from it to the piggy bank. For a year, Marina with her help managed to assemble a sheepskin coat.
And here are some more helpful tips on the topic,
how to manage money.
Watch the video:
Comprehend art how to manage money, it’s not so difficult, just learn how to live within our means, save, and if necessary, find additional sources of income.
There is nothing wrong with that.
Useful article? Do not miss the new ones!
Enter your e-mail and receive new articles in the mail
The ability to properly manage days is the path to financial independence and well-being. But how to make money work for you? Where and how to invest "hard-earned" to get rich?
Agree, not knowing the route, at least, it’s stupid and dangerous to sail even on the latest 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, you cannot hope for reliable "rear" and financial security.
We all know well that expenses need to be planned, and everyone does this as best he can. But not everyone thinks about the future and ensuring financial independence and stability of the family, spending every penny and not making any savings. Many live only thoughts on how to give and take a new one. Meanwhile, you need to put aside savings even with minimal incomes. And when you realize that you have accumulated a “safety cushion” that will protect 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 for managing money is 60% and 40% divided
Remember how often you succumb to a spontaneous desire to buy something you like just because you have a bad day, a bad mood or acquiring a girlfriend just does not leave you alone. It can be things for yourself, such as glamorous (a dress, a woman’s jacket), or for the home, for example, new rolling shutters for windows, and anything else. Some of these spontaneous things really come in handy, and some just weigh and take up space. We are talking about them. True, the mood improves immediately after the purchase, but then disappointment comes from the realization that the money has been thrown to the wind. But the situation is repeated again and again.
To manage money properly, reasonable people apply the 60% rule. It is extremely simple, but applying it to your own budget in practice is not so easy. The bottom line is that monthly living expenses do not exceed 60 percent of your income.
This should include the necessary expenses for food, only the right clothes and cosmetics, payment of utility bills and small expenses for travel, gasoline and unforeseen situations. With this approach, you will have 40% left, 10% of them will go to the treasured reserve fund, and 30% on investments, that is, on making 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% allowance for such a distant pension. Nowadays, one cannot be sure of anything for sure, and a well-paid job today does not guarantee a comfortable old age. And taking care of it now, you will provide yourself with a well-deserved rest, no worse than that of happy American old men, whose faces flaunt on advertisements.
The main thing in this business is to choose the right way to keep your savings. The "envelope" between books in this case is not an input. Sooner or later, inflation will “eat” your savings. In addition, there is always the temptation to spend them on something very necessary, and then report back ... Which, as a rule, does not happen. So that the money does not disperse, invest it in securities or choose a reliable bank and open an account there. Use the services of a non-state pension fund, in general, there are enough options.
Risk wisely - teach your money to work for you
Not everyone who wants to get rich has experience in the proper management of money in the field of investment. Therefore, there is always a risk of financial loss or, even worse, collapse. But deliberate and balanced actions will minimize this possibility. Over the years, investors have devoured the rule of 'falling asleeps' over the years. The point of falling asleep is the limit at which the investor loses sleep, fearing to lose more than he can afford.
In order to achieve the desired wealth without special problems, you need to follow simple principles.
First, have the right information. Before you connect your financial affairs with a specific bank, collect as much information as possible about it. Any detail is important: how old is he, what are the feedback from investors, find out all the nuances of a future agreement, compare and analyze the selected bank in the rating of others like him. Note the response of the bank employee to the questions you ask him. If he clearly, thoroughly and confidently answered them without tricks and dodges, this is another plus to your choice. If you are faced with a nervous and "bustling" behavior - go to another bank, (the good choice of banking institutions today is quite large).
Secondly, those who know how to manage money never put everything up to the 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 should be divided into several different investments.
One of the simplest and most familiar examples is currency exchange. Many exchange their national currency for 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 several bank accounts for these purposes. Then in the event of the collapse of one, the others will securely store the amount you earned.
Another option is to increase your savings and reduce the risk of losing them - different ways of investing. For example, keep a quarter of the amount in a deposit account. A quarter to invest in securities. The rest of the spend on the acquisition of real estate.
The desire to get rich and have a lot of money is not at all immoral, quite the contrary. who knows exactly what he wants and what he aspires to is a strong personality, before whom a lot of opportunities 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 less your loan debt, the better your credit history.
If a small amount of credit card debt shows that you are spending your money wisely, then a complete absence of debt should be even better, right? It turns out that no. If you do not use the credit function of your card, this will be a good sign for your well-being, but far from being so good for your credit history. Simply put, if you do not lend anything, then you do not provide any information to the credit bureau to assess your creditworthiness. In this case, it is best to open a credit account with which to use such 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
A lot of experts recommend paying yourself first, that is, sending money to a savings account immediately after you receive your salary. The problem with this approach is that many people graduate from the university with loans and debts, and at the same time they have not even started working. If your savings grow at a rate of one percent per month, and credit - at a rate of 18 percent per month, you will not get anything good from this strategy. It is much better to pay all your loans first, starting with those that have the highest interest rate. And when you repay the loan, experts advise you to continue sending the set amount, but to a savings account.
Every kind of debt is bad
Why do you need a loan? Student loan, loan for beginner businessmen, mortgage for the purchase of real estate, loan for the purchase of a car to start a career - this is all an investment in the future. The same cannot be said about the loan of ten thousand dollars that is spent on visiting restaurants, buying fashionable outfits and purchasing modern gadgets. Experts agree among themselves that student loans are “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 evaluate the advantages and disadvantages of a particular type of lending. A diploma in higher education will allow you to earn over a forty-year career more than you spend on credit. Does your new sweater increase in price over time or makes you a better person? Do you really want to make payments for it throughout the whole year?
Coupons and promotions are great savings tools
Everyone saw people using discount tracking apps with stacks of coupons, as well as pantries filled with loads of products. Before you dive into collecting coupons yourself, think about two things. First, how much is your time? Do you really want to spend two to three hours every week on cutting, filling and sorting coupons, comparing prices in all stores, driving to the other end of the city? Secondly, are these the products you want to buy? Is this really the best deal? Even taking into account coupons and discounts, frozen pizza of a popular brand can cost more than pizza produced under the brand of a local store, despite the fact that they will not 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 give you access to specific coupons for the products that 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 companies have the right 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 situation, there is your boss, social worker, or even your former spouse, if he has a court order. Unfortunately, it is far from always easy to check whether someone who does not have the right to do this has tried to see your credit history and whether he has managed to do it. First of all, you need to independently examine the monthly account statement and check the list of those who filed a request for access to your history, for the presence of unfamiliar names and company names. If you think 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 deferment on a state student loan, this will be displayed in the credit history as the line “paid by agreement”. It's a good news. The bad news is that if you have a deferment, then you are not making any progress on repaying the loan, so it simply stays in your credit history, which may worsen your assessment over time. So, even if you have a delay, you need to make at least small payments. Depending on the terms of the agreement, interest on the loan may accrue even if you can not make payments during the deferral. To help yourself, try to get the highest scholarship and all possible financial assistance, and in no case use the money received from a student loan to pay for your life.
Investing is the lot of the rich and experienced.
Does the thought of Wall Street make you dizzy? Do you think you need an economic diploma to make money on stocks? Each financial expert will tell you that investing part of your savings in the stock market is a great way to increase your fortune. Remember that for ordinary people, there are two key rules for investing. The first is to invest in the long run, so even during market instability, you can make a profit, not panic and rush to sell all your stocks when Wall Street is having a bad day. The second is to invest in index funds, which contain various stocks and bonds, so that the risks are reduced. You should register on one of the sites devoted to investments, as there you will find many instructions and guides for beginners in the stock market.
Each person needs to keep records of their budget.
It really is a great tool for many people, and if you use your budget efficiently, that’s great. However, the budget may be too complicated for some people, for example, for those who have just graduated from the university, or for freelancers and sales agents whose income varies from month to month. Many people are not fans of various tables and limits. If you relate to such people, you should not despair. There are those people who try to follow the budget, do it for two to three months, and then start to go crazy, they start to hate it. As with any other program (diet or sports), if this idea does not appeal to you, you will not like the process itself and you will drop it, after which you will feel guilty.
Today we have to figure out how to spend money. This topic is of interest to citizens of all countries. And constantly. After all, money is a means of subsistence. And they should provide maximum citizens. Not everyone knows how to properly dispose of them. And even more so how to put it off. When there is a family and children, issues related to finances are seriously aggravated. To avoid this, you just need to be able to spend money. How to learn this? What will help to save and maintain a family budget? The best tips and tricks will be presented later. 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 your purchases.
Family budget - an eternal debate
Keeping a family budget is a real art that not everyone is subject to. But to master it, at least try to do it, is recommended to everyone. With the right problems are not scary. They simply will not be. Except when the salary is delayed. And then the scale of the problems will be minimal.
A very good way to save and create savings. Many, as already mentioned, are encouraged to open a deposit in the bank and transfer money there. This will help not to touch the funds and save them. In any case, it should be in hard access. Only in emergency situations is it possible to spend accumulation data.
Plan and facts
How to spend money in the family? Those who have already mastered the previously listed methods can slightly expand the table of income and expenses. And add to it such components as the "plan" and "in fact."
In the first column, it is necessary to prescribe in advance what expenses and for what amount are planned. The second includes information on real costs. Quite an interesting way to plan for "free money." It is recommended that the column "in fact" be reduced monthly. Just like the plan section. Of course, given the fact that a decrease in these indicators does not harm the life and well-being of the family.
No to loans
How to spend less money? Some people think that loans are a good way to save money. In fact, the majority of citizens who have learned to live within their means, and also to put off well, say the opposite.
It is not recommended to take loans when planning a budget. But you do not need to exclude them from the pivot table if available. Lack of loans is a positive prospect. If a person has no debts, then the previously paid amount can be deferred for a rainy day.
Personal needs
How to spend money? Some do not understand this. If we are talking about one person, then there are no special problems with budget planning. But as soon as the family appears, certain difficulties arise, as has already been said.
The thing is that everyone has personal needs. What every person wants for himself personally. During training in planning and conducting home bookkeeping, you need to push your desires into the background.
By the way, it is recommended to distribute all "free" money at the end of the month between family members for personal needs. Or enter separate columns in the table of expenses and income for this purpose. Allocate a fixed amount of money to everyone for their desires.
Example
That's the way to keep a family budget. The example table that follows is by no means the most advanced method. Rather, it is suitable for beginners. Through it, you can easily learn 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 |
Directions | 10 000 | 7 000 | 3 000 |
Total | 31 000 | 31 000 | 0 |
Delayed | 5 000 | 5 000 | 0 |
This, as already mentioned, is far from the most common option for cost accounting. But he 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 it will be possible to learn how to distribute funds without problems, as well as save well.
Most people in one way or another regularly experience problems with finances, explaining this with external reasons - higher prices, lower wages and higher costs. All this takes place, however, there is another side to the coin, an unreasonable waste of funds and the inability to correctly regulate your needs in accordance with 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
We always wonder why people with approximately the same level of 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, incur debts and loans and complain about employer and crisis in the country. The answer is simple - financial illiteracy leads to the fact that most have no idea how to manage their hard-earned money.
Abroad, special trainings and the help of financial consultants who tell you how are very popular. In our country, such a practice began to appear only recently, but not everyone is ready to lay out a certain amount of money, it is much easier to use Internet services that teach you how to plan your personal and family budget.
The most popular problem of the overwhelming number of families is the lack of proper control over expenditures, because everyone wants to live in a big way, without thinking about tomorrow. People spend everything they have earned, and sometimes more, that is, they shoulder the burden of debts and loans. Thus, a financial hole arises, spouses make serious acquisitions immediately after receiving the main income, without planning a budget in advance, so by the middle or end of the month you have to seriously save, refuse everything you need or even worse - use the help of relatives, friends, a credit card. All this exacerbates the situation, it is simply impossible to keep all the expense items in your head, full-fledged home accounting 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 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 profitable offers of some organizations or force majeure situations, but most often families are guided exclusively by their desire to have everything at once, gaining dozens of loans again and again.
Properly manage finances will help elementary rules:
- Never overpay for goods, having studied pricing policy in advance.
- Feel free to use 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 most necessary, leaving expensive items or services in the end.
- Control your emotions, do not succumb to inviting advertising and promises of interest-free installments.
- Get what you came to the store for and don't make spontaneous purchases.
- Wholesale - always cheaper. Some products are more profitable to purchase in large quantities.
- Do not chase fashion and do not get fooled by the opinions of friends and colleagues, this is what advertising is designed for.
- Prices largely depend on seasonality, for example, fresh fruits and vegetables are always cheaper in the 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 there is not enough money
To forget about the catastrophic shortage of money once and for all, it is enough to follow three simple points. 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 save money, but also to increase capital, you should take all three tips seriously.
Spend only real money
Living within our means is quite simple, the question is whether you will feel comfortable in this situation if you are already used to a beautiful life. To moderate your ambitions and tighten your belt - that’s what you should work on first, after which you will be puzzled by the question of how to earn more and satisfy all needs.
Many for home accounting use the rule of 4 envelopes. It consists in dividing the entire monthly budget into several parts. First, we separate from the total amount finances intended for obligatory payments (rent, kindergarten, debts and loans, etc.), then we postpone the part that will make up the financial pillow, 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 how to look to the future and plan large purchases in advance without getting into credit bondage. An important nuance - try to teach elementary rules of expenses and your children, so it will be easier for them to navigate in the adult world.
Secure Your Extra Income
The second principle of improving one's own well-being is not only to reduce costs, but also to increase incomes. Here are some real ways to accomplish what you want:
![](https://i2.wp.com/bagiraclub.ru/images/bagiraclub/2017/05/spisok-pokupok-600x412.jpg)
How to live economically
The third rule is, of course, the ability to rationally spend profits without allowing yourself ill-conceived expenses. A large item of expenses for any family is food, household goods, and clothing. on their purchase without prejudice to health?
- Before shopping, make lists and follow them relentlessly. If suddenly you have a strong desire to purchase a thing 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 goods.
- Plan your menu for the week. Write down the necessary ingredients that you should buy, as well as drinks, snacks and sweets, so you will know how much of the cost in your family budget is food.
- Having compiled a list, you will approximately 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 anything superfluous, as a rule, tasty, but harmful.
- Some things, such as underwear, socks, cosmetics or toys, and even household appliances can be purchased through the online store, in joint purchases or in wholesale stores, which will save your time and money.
- If you live in a private house with a personal plot, it would be more logical to grow vegetables and herbs on it, rather than buying in stores and markets, while expensive pickles and preserves will be on your table all year round.
- Save on "chemistry", some well-publicized 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 cook the same at home.