The key solution is to know how to manage money and not allow it to lead us. We need to learn how to organize our expenses so that they do not surprise us nor result in a shortage of money.
How much money is enough in your life? As much to help you meet your needs. While the lack of money makes you unhappy (because it can affect the dissatisfaction of needs), extra money does not make you happy. Therefore, there are two main questions you need to ask: “What are my needs?” And “How to use the money so that satisfy them?”
How to identify needs
The first time you work with someone, first ask him what he wants to improve in his work or life and why. In the second part of the question, the person is usually more difficult to answer because many people do not think about their deepest needs hidden behind layers of discontent. To remove dissatisfaction, you must first identify the needs, and understand why you feel, think and behave in a certain way.
Have you ever responded to the fact that someone makes more money from you so that you begin to dishonor that person? Ask yourself why? It is an expression of hidden needs and emotions that arise while the particularly important indication of the same. And how did you feel at that moment? Angry, annoyed?
The next step is to explore the thoughts that led to the emotions that you feel. You may be thinking, “He does not deserve this!” “I’m much better than him!” And the like. However, the thinks that put more the others in the focus, and not you, protect you from truly painful thoughts, for example, you are not worthy enough or competent. Only this kind of knowledge will be closer to you to discover that behind the needs of defense mechanisms. The need for competence, recognition, self-esteem are certainly some of them.
How best to use the money for the purpose of satisfying the needs
Going back to the relationship between money and needs. Using the previous example, the need for competence and recognition you will meet if you, for example, aim your money on education, learning, and development. Have you ever wondered why you feel happy when you have money to spend? Because you use it wrong. Do not navigate it to meet the needs. If you feel worthless, new shoes will make you feel more valuable, but because for example, certificate of completion rate certainly will.
Keep a record of income and expenses
It is important to find out how you can provide funds for your needs, or you must have an accurate insight into your income and expenses in order to be able to allocate the money. To begin, create a monthly overview of income and expenses to see if you spend money evenly. That will help you write above all the daily expenses as you will have an insight into everything you’ve spent or received, but nothing you will not have to remember and therefore you will not forget.
Daily writing will occur monthly and it will help you to see where you are going, your total income and expenses. This will give you space for the introduction of changes that you think may follow. This does not mean you should give up everything you love and you enjoy, but mostly there are unnecessary costs, without which we can live.
Also, write down and plan ahead to you monthly obligations that you have to settle ie. installment loans that may be paying, rent or charges and any other expenses that you expect in a month (eg. school books for your children, celebrate celebrations or birthdays, payments for exams, etc.). In this way, for you will be largely unplanned cost and the other important thing is that you will in this way a bit and save. The settlement of obligations on the weather prevents activation of default interest which have monthly small, but if you consider the long term – it can be a nice amount you save. If you manage to organize, the more chances you have to set aside “some money” in this way you will have saved money in case of emergency (doctor, dentist … or any other emergency).
Analyze your budget
How to use your money? Usual dates on which you should analyze your budget is a month since then, with new income, analyze the “failures” of the last month. To prevent a “bust” or the famous “draft feeling” in his pockets at the end of the month, take control of a small business, for example, two weeks to see how you stand with the money. And if there is a reason for concern, make brake with spending. With a monthly analysis of business, you will have a detailed insight into whether spending in real terms more than you can or want to.
Also, you will see where or on what your money goes, or whether it is really necessary things or small things or even big that it’s not necessary. If it turns out that it does not necessary things that you spend the money, you can do yourself to save space. Thus at the end of the month, you will have a real state of your monthly needs and you will see that all the things you spend money and where you can leave on the side. All you remain at the end of the month – save, you’d be surprised how small amounts can be beneficial when after some time and regular separation, a certain amount increase.
Learn how to spend
Use the money you have – make the maximum value of the money you have. This means that if there is a chance that for, for example, a living procurement walks into a store which is a little further, which has a cheaper groceries, you benefit time. A walk will not hurt you, but if you save some money every day, annually you will have a little higher amount …
Make a shopping plan
Adjust to your needs but every time you go to make a purchase list of what you want to buy (at least in my mind) and stick to that list. If you buy through inertia, the greater the likelihood that you will buy and what you do not need to spend unnecessary time and money.
No matter how you try to find your way alone, without having to borrow money. With the loans, you have a small financial injection, but long-term this will mean higher costs and less money back to you. If you still cannot avoid, first try to borrow money from family or friends, because it will save you a variety of interests. If that is not an option, since banks are looking for the favorable and lower loan that the interest rate will be lower. And what is very important – return your loans on time. If you are building a habit of constantly living “on credit” or “minus” or borrowing money, actually wearing only say a growing problem that will constantly grow and then enter into a vicious circle indepted. As part of this absolutely means to give up the irrational attitude toward money, which is seen in betting and related things in which generally only lose money.
Use only the financial products they understand and make sure you are well informed and understand them as much as possible. If you have any of the credit cards or credit, ask well what are the conditions of its use and how it will further strain your budget.
The point is that you really start to think about your needs. You can spend money on whatever you want, but if you do not make happy, it’s time to ask yourself what you need. And finally – moderation is useful in saving. Like anywhere else, not for savings or result should not be exaggerated. You should not run for any possibility to earn or to save. Exaggeration in both cases you can lychees peace and rest that is needed, to bring unnecessary nervousness and create a problem that money will not be able to solve. So, spend money rationally save, but without quibbling for every coin.