How to spend money correctly? Family budget: example. Home accounting. How to learn to manage your money correctly How to manage your family budget

The ability to manage money correctly is the main path to financial well-being. This is an entire art that anyone who really wants to can master. This is also hard and painstaking work, requiring special endurance and constant self-discipline. People don't become rich just like that. A person who strives to become financially free is constantly evolving. Reads relevant literature, for example: “How to manage money correctly so that money works - 7 true tips” or “Psychology of a rich person.” Financially independent people are constantly analyzing what is happening and looking for new opportunities.

Not so long ago, the desire for money was considered a vice. Everyone was taught that the main thing was to get an education and get a good job in order to work there until retirement. Life is good. But they never taught anyone how to manage money, how to make money bring profit and work for themselves. And even today, most of our population is inclined to the first option. Few people think that an employee enriches the director of an enterprise or the state by constantly paying taxes. At the same time, an employee is not always more stupid than an entrepreneur.

How to become rich? There are only 2 options. Option one is to be born into a rich family. Option two is to take action. It will not be easy, but through trial and error we must move forward, no matter what or no one. It's all up to you. How ready are you to change your life? We offer you 7 true tips.

Ability to manage money

Let's start with the very basics. Surely you have several friends who, having approximately the same income as you, manage to do home renovations and save up for their business. Don't look for hidden income, it's all about proper allocation of funds. Of course it's not as simple as it seems. It’s worth arming yourself with self-control and starting with the basic rules.

1. Control your expenses. Not just “in your head,” but keep a notebook and write down where and how much you spent. After a month of such work, analyze everything you wrote down. Believe me, you will be surprised at the amount of unnecessary spending. On average this is 20 - 60% of total costs! So your personal business floats past.
2. Debts and loans. The entire credit system is financial slavery. A person who lives “on credit” will never achieve anything in life. He will be mired in a swamp of debts. There are people who take out a new loan to pay off an old loan. We are not talking about individual cases when a loan is taken for business development or critical situations, we are talking about a simple “I want”. Taking out a loan for a new phone, refrigerator or repair is financial illiteracy.
3. Smart spending of money:

• Make a list before going to the store
• don’t overpay, look for a way to get a product or service at an affordable price
• It’s worth living within your means, in pursuit of expensive and branded
• make seasonal purchases correctly; vegetables and fruits are in season, and things, on the contrary, are out of season
• control your emotions, spontaneous purchases ultimately only bring disappointment and unnecessary expenses.

Assets and liabilities, what you need to know

You need to clearly understand how exactly an asset differs from a liability and limit the costs of liabilities and purchase only assets. To become rich this is all you need to know. For most people, all their financial problems begin because they do not understand this difference. Assets bring money. At a time when money is only spent on liabilities.

Let's take the average person, what does he have? The apartment requires paying bills, requires constant repairs, the house will not last forever. This is our liability. Car - gasoline, repairs, maintenance, just left the showroom and the price has already dropped by 25%. Also passive. Expensive phone, branded items - only liabilities. Even when an ordinary person's income increases, his liabilities only increase, a new expensive car requires even more money for maintenance.

What then is an asset? This person has only one asset - efficiency. Spending money on multiple liabilities with only one asset is not wise. When a person begins to understand this, he looks for additional assets and becomes an investor.

Stocks and Forex how it works

Investment, simply put, is the placement or investment of one's money in order to make a profit. One of the simple ways is stocks and forex. At first glance, everything is simple, but there are many pitfalls and this type of investment requires certain knowledge. In such areas as economics, politics, jurisprudence. And an analytical mind.

1. Forex. Initially, Forex was created to conduct external trading and attract investments. Gradually, people began to make money in Forex by buying and selling currencies. Such people are called traders. The advantage is that anyone can become a trader and some people, without the necessary knowledge, play it like roulette. With this approach, they quickly burn out and are left with nothing. To become a successful trader you need to analyze, understand the market, go through defeats and victories and develop your own technique.
2. Stock. By buying shares, you become a co-founder of the enterprise and the more shares you have, the higher your income. However, when buying shares, you need to understand exactly how much you are buying as a percentage. So, when buying 100 thousand shares, this may be only 0.00001% of the total number of shares, respectively, your annual income may be tens of times less than the invested funds. In addition, shares may rise or fall in price. Most often, shares are bought not to make a profit, but so that later, when the price rises, they can be sold and profit from the difference in price.

The bottom line is that you need to study Forex and stocks in depth and have the appropriate personal qualities.

Never invest because someone advised you or they offer very good conditions. Be sure to consult with independent professional specialists, or better yet, several.

Government bonds as a profitable investment

What are government bonds? loan? Simply put, you lend your money to the state, and it gives you securities - bonds - as collateral. Everything works almost like a deposit in a bank. But much more reliable.

• The borrower is the state, and in case of non-payment of funds on the bonds, this will be regarded as a default, which is not beneficial to the state.
• The loan term is 3 years.
• The average interest is 9%, while banks have the highest interest on deposits - 7.5%.
• The minimum investment amount is 30 thousand rubles.

Let's calculate how profitable such an investment is.

Let's take 100 thousand rubles.

• 100 thousand rubles * 9% = 9 thousand rubles. per year
• 9 thousand rubles * 3 = 27 thousand rubles. in 3 years.

In total, after 3 years the state will return you 127 thousand rubles. As a passive investment that does not require your time with minimal risks, it is quite a good option.

Commercial real estate

It is worth noting that real estate is the most stable, lowest-risk asset. As an indicator, the banks are happy to provide loans for the purchase of real estate. There is such a type of real estate as commercial real estate. These are premises, buildings or land used for commerce.

So, banks began to issue “long-term money” for the purchase of commercial real estate. Simpler - loans for purchases for a period of up to 20 years at 9 - 10% per annum.

What is the point, you have only 500 thousand rubles and buy on credit, for example, a store in a good location costs 4 million rubles. for 10 years at 9% per annum. And you rent it out. But the rental prices are not low, the monthly amount is enough to pay off the loan and still have some left over. Thus, without doing anything yourself, in 10 years you will own a store worth 4 million rubles. How do you like this investment?

Buying a business

Buying a business is still an undervalued type of investment, but in vain. It so happens that in our country it is much cheaper to buy a business than, for example, in the West. In Europe, the price of a business is estimated at an amount equal to its profit for 36 months of operation. Our price is equal to only 6 months of work. It could be a simple hairdresser or a cafe. But in order to buy a business correctly, you need to understand how profitable it is and whether there is a prospect.

1. Let's take a month to calculate how much money the sales of products, goods or services brought in for a certain period.
2. Calculate all expenses for the month (products, rent, fees, salaries, utilities, taxes, equipment wear and tear, additional expenses).
3. Now we subtract all expenses for the month from the total income for the month. This is the amount that remains and is the income from this business.

After analyzing several months in this way, you can roughly understand how promising the business is.

You shouldn’t take the seller’s word about the profitability of the business; he needs to sell. Watch for yourself for a while, don't rush. It is much better to miss an option and look for a new one than to invest money in an unprofitable enterprise.

Cryptocurrency as an investment

Until recently, such a term as “cryptocurrency” did not exist, and still not everyone understands what it is. Let's explain. Cryptocurrency is electronic (virtual) money that exists only in the system and is protected by an electronic code. You can't hold them in your hands.

This virtual money is tied to real money at the exchange rate on the financial market. There are different types of cryptocurrency, the most common is Bitcoin. How to make money with this kind of money:

• simple collection of bitcoins (visiting certain Internet resources and performing certain actions is paid for in bitcoins)
• making money on online games
• affiliate programs (for attracting clients or website promotion)
• performing simple tasks on the Internet (watching advertisements, etc.)
• cryptocurrency mining (requires the purchase of powerful computer systems that will earn cryptocurrency themselves)

This type of income has its pros and cons. But time does not stand still, everything changes and electronic money is our future, there is no escape from it.

How did I learn how to properly manage money many years ago when my family was really tight with it? She began to increase them later.

Purely intuitively, I decided that if I take a little away from my salary, there will be a little less money. Even on a very small family budget, this smallness is unnoticeable.

They taught us everything at school, but not the most important thing - how not to be poor. For as long as I can remember, while I was working for an employer, I could never help but think about money. How, for example, can you save money for a necessary purchase?

Today, the financial literacy of our people is very poor, there is no money and they don’t know how to earn it. They say money doesn’t buy happiness, but you can’t live without it!

Let's learn how to create financial security in advance and increase money. I’ll show you some basic techniques, and later, if you want, you’ll find more knowledge on this topic.

We all work for money in a job we love or a job we don’t love. We always knew, we were taught this, after graduation we had to go to work. We did it.

Nowadays, those who are already well over 19 or 21 or 24, looking back, we see that we know how to do a lot, but we do not know how to manage money.

And if a situation happens now where we are left without work, then this is a tragedy.

Do your financial skills allow you to live the life you want today?

Rich is not the one who earns a lot, but the one who manages money correctly.

Earning 20 thousand. rubles a month, you can be financially secure or financially independent in 5-10-20 years.

At the same time, earning 200,000 rubles. You can spend everything and still end up in debt.

Take a piece of paper, a calculator and calculate my numbers, you can take your original data.

One day. When money was really bad in my family, I decided to leave a certain amount in my savings book every month. At first, without a specific goal.

And when my children and I spent our entire vacation driving Zhiguli cars around the Baltics, eating in cafes, buying almost whatever we wanted, I realized that I had come up with a good way to save money for a vacation.

When I was able to save a large amount, I easily saved for some large purchases. I didn’t make any calculations, I didn’t even make a deposit in the bank. I learned this later.

Now I will show you how to correctly create an asset and how to increase it.

Let's assume that you save $100 monthly. In 25 years, when you are 50 years old, you will have saved up 30 thousand. You can spend them and that’s it!

Let's make our savings work for us, make them assets, that is, let's invest, then our capital is guaranteed to turn into assets and insure us against any unforeseen situation.

How to increase your accumulated money?

Numbers are the best proof; when you calculate, the picture becomes clear.

This is what we will do now.

I took the example of 100 dollars. – we save and invest monthly, let’s assume our deposited money is at 12%, we do reinvestment and in 40 years the asset will be $1 million.

That is, if after graduating from college a person begins to accumulate and invest capital at the age of 25, then at 65 he will become a millionaire.

This number may scare you! And I want to use my savings much earlier.

Let's see in 15 years at 40 years old, monthly income from assets is 500 dollars. That is, starting from the age of 40, a person can live on income from an asset of 500 dollars per month. Not bad already!

In 20 years, at 45, monthly income from assets is about $1000

At 50 YEARS OLD, about 2000 monthly. Not a bad pension, right?

Having such basic knowledge at the age of 25, a person began to increase his assets; he has time to gain financial knowledge and learn how to manage his capital. As a result, his asset could reach a million much earlier.

You need to think about retirement from the very first salary, and thus you can go into “retirement” much earlier.

These skills were just not instilled in us. I hope you will begin to use some of the article, teach it to your children, and pass this knowledge on from generation to generation. May our offspring be much more literate than you and me.

Each of us can become our own banker.
By saving at least 10% of our salary, we would not turn to banks, would not take out loans and mortgages. We would be our own bankers, we would be the masters of our lives.

What niche is it profitable to invest money in now?

But... many of us no longer have this time to save a little .

Let's see how we can do this faster. We need to find a financial niche where we can increase our capital now and in a much shorter time, especially for those who do not have these 20-30 years

When a crisis begins, opportunities always appear at that moment, you just need to see them! Even in crisis we dream, life goes on and we must find those opportunities that can quickly end.

Let me give you a quote that confirms my words about opportunities in a crisis:

“When a hurricane begins, a fool hides his head, a wise man builds a house, and a wise man builds windmills.” Abay Kunanbaev

Let's talk today, at a time when monetary crises follow each other, about the idea of ​​a million dollars or a million euros.

We will talk about investing in virtual currency, about a windmill that any wise person is using now.

Some people hide from this opportunity, others study long and deeply and are already at risk of being late.

Financial windmill

Sincerely, Nadezhda Sheverova

Blog Many interesting articles

We have created an existential dictionary especially for you so that you can understand the meaning of many words. This especially applies to our inner world. We have a hard time understanding character traits. It's time to put an end to this! Now you will find answers to all the questions that have tormented you for many years. For example, what is Spirituality? Definition of the category RESPONSIBILITY. And much more. We go through all these categories in our trainings, and in practice we learn to apply them in everyday life:

How to spend money correctly

04.10.2018 1764

The ability to spend money correctly is the key to financial independence and stability. This is a real art that anyone can understand. You will need endurance and discipline, but the results will be worth it. Many people think that financial difficulties depend on external factors, low salaries, the crisis, but this is only one part of the problem. It's all about the inability to spend money wisely. Wealth doesn't come overnight, unless you win the lottery or are born into a millionaire family. To become financially independent, you need to develop, improve, read relevant literature, and change your thinking.

Financially literate people feel comfortable even with small salaries, while others get into debt with a stable, high income.

You don’t need special education to learn how to manage your finances. It is enough to adhere to the basic principles that teach you how to spend money correctly so that it returns, multiplies and works for you.

Cost control

The main problem for most people is uncontrollable spending. Financial instability occurs when all the money that is earned is spent. If expenses exceed income, a financial hole is formed and debts appear. People who do not control their spending constantly lack money. As a rule, already a few days before payday, they are forced to “tighten their belts” or even use a consumer loan, which aggravates the situation even more.

By making calculations in your head, it is impossible to learn how to properly manage money in the family and accurately control expenses. To do home accounting, determine where and how much money is going, and then analyze the costs. This is easy to do in a notepad where all the amounts are entered:

• First, write down your fixed monthly expenses (rent, utilities, loan payments, public transportation, or gas for your car);
• add to the amount the planned “inevitable” costs (manicure, hairdresser, dentist, etc.);
• We subtract the resulting result from the total amount of wages and divide the remainder into two parts. One can be spent on entertainment, buying new things, the second can be put aside for a deposit. The more money you manage to save, the better your condition will be in a critical situation.

To spend money economically, financially literate people apply the 60% principle. It lies in the fact that monthly expenses should not exceed 60% of total income. This includes mandatory, unplanned payments for unforeseen events. Of the 40% of the total amount, ten remain in the reserve fund, and 30% goes to investments that will bring profit in the future.

Recording costs in writing allows you to spend money wisely before payday and make fewer mistakes and spontaneous purchases.

Getting rid of debts

Another factor that negatively affects family budget planning. The variety of loans, the spread and availability of quick money have led to a life of “borrowing”. A person finds himself in a financial hole, from which it becomes more difficult to get out every day. When buying something for which there is no actual money, people overpay, and the more favorable and simpler the loan terms, the greater the amount of overpayment. Of course, there are situations when a loan is needed for business development or in force majeure conditions, for major acquisitions. When it comes to a momentary “I want” and a loan is issued for the purchase of gadgets, a wedding or a vacation, this is financial illiteracy. The number of families with multiple loans is no longer uncommon. They are forced to enter into new lending agreements to cover past debts. The problem is not a small salary or external factors, it is the inability to manage money wisely.

Proper home accounting means no consumer loans, spending only the money you actually have on hand.

The principle of the credit system is financial slavery of consumers. A person who lives “in debt” will not achieve stability; he will become bogged down in obligations. Loans put pressure on the psyche, forcing you to do something you don’t like instead of living a joyful life.

Conclude loan agreements after preliminary analysis and weighing of all factors. In other cases, rely on your own strength, set aside to implement your plans.

Reasonable spending

Another nuance that will help you learn how to spend money correctly and manage your family budget. This includes several rules for the distribution of finances:

• Never overpay for a product or service if you can buy it cheaper. For example, the same product in different stores may cost differently. It all depends on the image, location, level of service;
• Buy only necessary goods or services for which you have the funds. Don’t spend extra money unless there is an objective need;
• don't deviate from the plan. If you go to a store or market for a specific item, buy exactly that, and refuse random “bargain” purchases. Before going out, make a grocery list and don’t deviate from it;
• Controlling your emotional state will help you spend money wisely. Try not to buy anything out of emotion. Most likely, the purchase will turn out to be a waste of money when the feelings subside;
• do not be influenced by your surroundings, fashion, trends. Most unnecessary purchases are made by people who want to conform to imposed standards;
• if you have the opportunity to buy products in bulk, use it;
• use discount cards, bargain. Contrary to popular belief, you can bargain not only at the market. At the time of bargaining, you actually receive additional income from the purchase and replenish your budget;
• buy seasonal vegetables and fruits. During the season their prices are much lower. Use this factor to optimize costs;
• update your wardrobe at the end of the season. The opposite principle applies here, as in the proverb: “Prepare your sleigh in the summer.” The price of winter boots or a jacket in the spring will be significantly lower than at the height of the season.

Spending wisely is an effective way to manage your money wisely to save for a vacation or other purchase.

Another option for maintaining a family budget is the four envelope rule. Mandatory payments are subtracted from the total income. Part of the money is set aside for emergencies. The remainder is divided into four parts and spent each week. This allows you to spend money rationally, plan large purchases and vacations in advance, without going into debt.

Assets

The use of these methods allows you to allocate resources to create monetary assets that will ensure and strengthen financial independence. Assets - funds designed to increase profits, are of three types:

• reserve - money that is used to solve force majeure situations;
• saving. Designed for large acquisitions;
• capital – funds aimed at increasing profits.

Spending money on various liabilities (gadgets, a car, regular payments, etc.) if you have one asset is wrong. When a person realizes this, he finds additional sources of income, begins to invest, invest money to make a profit. There are several options to use your money profitably:

Each type of income has its own advantages and disadvantages, requires certain knowledge and preliminary calculations, but the result is worth it.

The tips listed will help not only save money, but also increase your monthly income. Don’t expect instant enrichment; at first you will have to be patient and get used to the new budget distribution. However, within a few months you will see positive changes in your financial situation.

Today we have to figure out how to spend money correctly. This topic interests citizens of all countries. And all the time. After all, money is a means of subsistence. And they must provide citizens as much as possible. Not everyone knows how to manage them correctly. And even more so how to postpone it. When you have your own family and children, issues related to finances become seriously aggravated. To prevent this from happening, you just need to know how to spend money. How to learn this? What will help you save and manage your family budget? The best tips and tricks will be presented below. All of the above is not a panacea, but it will help you avoid wasting money. In some cases, this will allow you to spend less and save more, without compromising yourself on your purchases.

Family budget - an eternal dispute

Managing a family budget is a real art that not everyone can master. But it is recommended for every person to master it, or at least try to do it. If done correctly, problems are not terrible. They simply won't exist. Except in cases where wages are 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 recommended to open a bank account and transfer money there. This will help you not to touch the funds and preserve them. In any case, it must be difficult to access. Only in emergency situations is it allowed to spend these savings.

Plan and facts

How 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 to it such components as “plan” and “in fact”.

In the first column, you must indicate in advance what expenses are planned and for what amount. The second contains information about real expenses. Quite an interesting way of planning “free money”. It is recommended to reduce the “actual” column monthly. Exactly the same as the “plan” section. Of course, taking into account 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 believe that loans are a good way to save money. In fact, most citizens who have learned to live within their means and also save well say the opposite.

Taking out loans when planning a budget is not recommended. But there is no need to exclude them from the pivot table if they exist. Lack of loans is a positive prospect. If a person has no debts, then the previously paid amount can be put aside for a rainy day.

Personal needs

How to spend money correctly? Some people don't understand this. If we are talking 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 every person wants for himself personally. While learning to plan and maintain home accounting, you need to put your desires into the background.

By the way, it is recommended to distribute all “free” money at the end of the month among family members for personal needs. Or enter separate columns in the expense and income accounting table for this purpose. Allocate a fixed amount of money to everyone for their wishes.

Example

This is how to properly manage a family budget. The table example below is not 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.

This, as already mentioned, is far from the most common option for cost accounting. But it helps at first. In general, planning a home budget is a crucial moment. And it is recommended to entrust this activity to those who are best at it. With a little patience and strength, you can easily learn how to distribute money and save well.

Today we will talk about how to manage money correctly, competently, reasonably, so that they bring maximum benefit to a person or family, and do not cause harm. As you know, now a very large number of people, to one degree or another, constantly or temporarily experience various types of anxiety.

They always consider some external circumstances to be the reasons for this: loss of income, increased expenses, etc. But in fact, this is only half the reason, and the second half is always internal in nature and lies in the inability to properly manage money.

Many people also think that the reason for their financial difficulties is that they do not earn enough. But this is also only one side of the coin: the second is how much and how they spend. Financially literate people who know how to properly manage money are able to maintain their income at an acceptable level even with a small income, while people and families who do not pay due attention to financial literacy are “heavily in debt” even with fairly substantial incomes.

The financial condition of a person or family equally depends on the level of income and the level of spending, as well as on external and internal circumstances. By changing your internal factors and learning how to properly manage money, you can strengthen your financial condition even with constant income and worsening external circumstances.

So, how to manage money wisely and as efficiently as possible? In fact, it is not as simple as it might seem at first glance. And that’s why they are already working in full swing abroad, but here people are just appearing who call themselves and are teaching how to manage money competently for money (forgive the tautology). Their services are in certain demand, good consultants always have their own clients, however, I believe that it would be much more effective and correct to improve your financial literacy yourself and learn how to manage money correctly. Moreover, this can be done absolutely free, for example, on the Financial Genius website or other resources that address planning and accounting issues.

Now I will outline the main directions that will tell you how to manage money correctly, and will provide links to other articles on the site, in which certain points are discussed in more detail.

How to manage money correctly?

1. Cost control. The biggest financial problem for most people or families experiencing financial difficulties is lack of control over expenses. Very often people spend money on things they haven’t earned yet, which is called “living beyond their means.” Thanks to this, many are in a state of financial instability (that is, they spend everything they earn) or, even worse, a financial hole (they spend more than they earn, have debts).

People who do not properly control their spending always live “from paycheck to paycheck,” and, a few days before the next cash receipt, their personal or family budget is already completely wasted, they either have to “squeeze” and not buy anything at all, or borrow money, use loans and credit cards, which further aggravates the situation.

What's interesting is that many of these people don't even admit that they have this problem. They believe that they know how to manage money and control their spending. How are they controlled? Well, in my head! They think about what to buy and what not. The result is obvious...

Imagine what would happen if, for example, the state or an enterprise controlled its expenses “in its head”? They would go bankrupt very quickly! A family or an individual has exactly the same budget, family or personal, and in the same way, carefully and competently must control their expenses. That is, to keep home accounting.

Only this will help you clearly and competently control your expenses. No “mental calculations” are effective in this case (you can see this from your own example). Therefore, if you want to know how to manage money correctly and effectively, first you need to determine exactly where and how much it goes, and then optimize these expenses. This can only be done with the help of full-fledged accounting of household finances, which can be maintained in different ways (you can familiarize yourself with them using the link above).

2. Life without debts. The next problem that is worth mentioning when talking about how to manage money correctly is the problem of having debts. Unfortunately, the availability and massive promotion of all kinds of consumer loans and credit cards have led to the fact that many people and families have begun, that is, found themselves in a financial hole, and are digging it deeper and deeper.

By consuming what they have not yet earned, a person or family always overpays, and the simpler and more accessible the loan, the more expensive it is and, accordingly, the greater the overpayment.

Of course, if there are individual situations, when, when it is really profitable, but there are very few of them, and most often we are not talking about such situations, but about the banal “I want!”, which leads to the formation of debts and living on credit.

It is already quite common to find people or families with 2, 3, 5, and even 10 loans, constantly taking out new loans to pay off old ones, constantly increasing their debt amount. And do you know how they justify it? They say that this is all “not a good life”: low salaries, high prices, and all that jazz. No, it’s all due to financial illiteracy and inability to manage money correctly! If you don’t think about this, don’t rethink your position, then you can soon be left on the street without property that will be sold for debts!

Proper management of money means a complete absence of consumer loans and living in debt! This is consuming only what you earn. And buying something you haven’t earned yet will help you, but not loans!

3. Reasonable spending. And the third, very important point that will tell you how to manage money correctly is, of course, reasonable spending. Here you can highlight several important rules for managing money from a personal or family budget.

– Don't overpay. A financially literate person will never overpay for any product or service; he will find an opportunity to purchase it at the best price.

– Live within your means. Spend your personal finances only on those goods and services that you have already earned money for and that you really need. You should not buy expensive things and accessories without an objective need.

– Follow your goals. If you go to a store or market for certain goods, buy exactly these goods, do not make related or “random” purchases.

– Control your emotions. When dealing with money, emotions are one of the main enemies. To ensure proper management of money, do not make any expenses or make financial decisions influenced by emotions: they will most likely result in financial losses for you.

– Don't be led. Not from anyone: not from colleagues, not from friends, not from children, not from spouses, not from fashion, etc. A very common reason for thoughtless and unnecessary spending is precisely that a person is led by someone else.

– Buy in bulk. Of course, when it makes sense, when you really need a large quantity of goods. It is better to buy the same products in advance and cheaper than to buy little by little regularly and overpay.

– Buy fruits and vegetables in season and clothes out of season. The seasonality factor plays a huge role in making profitable purchases. Prices in season and out of season can literally differ significantly! Why not take advantage of this to optimize your personal or family budget?

Competent and reasonable spending is the basis for proper management of money. Do only the necessary things, and the chances of facing the problem of not having enough money for something important will become much less.

4. Creation of monetary assets. Why are all the above methods of competent money management necessary? In order to free up free financial resources and direct them to create vital financial assets, thanks to which your financial condition will strengthen. There are three such assets:

You have gained some understanding of how to manage money correctly, wisely and competently. I hope you understand how important and necessary this is. Of course, this is only a small part of the tips and recommendations. Stay tuned to Money Genius to learn more so that smart money management can become a healthy financial habit and help you strengthen your financial position. See you again!