The ability to manage money, along with the ability to earn, is one of the most important factors that affects financial well-being. There are simple ways to develop this skill.
Have you come across a situation when a person with relatively good earnings cannot save a small amount of money to buy furniture or put off for a vacation, while others who earn less can afford both, and also manage to save some amount to a bank account?
Or is there another situation - two people who receive the same salary, one is always in debt, the other gives out money himself?
Many sincerely believe that the most important issue is the size of earnings, while there is another factor that affects financial well-being no less - this is the ability to manage money.
This skill allows not only saving and not wasting material resources in vain, but also directing them in the direction that will turn out to be most profitable in the future. Without these two components, any earnings or savings can be squandered in no time.
To learn how to manage your money, you can:
1. Keep a written record of all expenses
The ability to manage money includes a conscious attitude towards this area. When the process of spending is chaotic and under the influence of external stimuli (advertising either directly in the store or at a sale), then much more money is spent than planned and not what you really wanted to buy is bought. Usually, after a chaotic waste of money, people regret many purchases or note that they could have bought something else.
Written accounting of planned expenses allows you to learn how to manage money more efficiently and be less subject to emotions when shopping, and as a result, make fewer mistakes in this area. Write a list of the necessary expenses for a month, based on the amount that you have for this period. You can also write a separate list before going to the store or the mall. This simple trick can change the way you think about money and help you streamline the area.
If you enjoy the shopping process itself, leave a fixed amount for unexpected purchases. You can spend it if the opportunity arises, however, you must adhere to the planned amount.
2. Track your true needs and emotions at all times of money management
A conscious attitude to money is necessary in order to avoid mistakes that arise when using it thoughtlessly.
Imagine two situations. In one of them, a person manages money completely under the influence of external factors. There is a need or a strong incentive, and he rushes to buy a product or service. In this situation, he is not the master of his financial sphere. It is controlled by external stimuli. Such a person is subject to the industry of consumption of goods and services, and it is profitable for it to simply impose unnecessary and unnecessary things in order to get as much profit as possible.
And the second situation. If a person clearly tracks his true needs, realizes them and purposefully takes actions to achieve the set goals. Such a person will not be distracted by thoughtless spending just because the manager really wants it.
Try to clearly understand the meaning of the purchases and services you intend to purchase. Why do you need this? What will it give positive in your life? What will you get?
If you clearly answer these questions, it means that the possibility of chaotic loss of money for something that does not bring any benefit is excluded.
Using these two techniques allows you to gradually develop the ability to properly manage money.
