How to stop wasting money and make a fortune
Get Rich / / December 20, 2019
Everyone wants to be happy, and finance - an important part of life that affects the inner harmony. Unfortunately, sometimes even getting enough money and spend it, the person experiences an emotional imbalance. The solution lies in the judicious use of funds.
Understand the reasons for which most of the money is spent useless
Let's begin with a simple. Try to remember the last time made a big but not very necessary purchase. As an example, take a fictitious character named Peter, who bad things are going and have the money to treat yourself.
Recently, Pete was bored, and he bought a new TV. Old - only a couple of months, and the novelty with a longer diagonal became 1 mm thinner. The example is taken for convenience, it can be anything: a new shirt, mascara or even excess chocolate. The first few hours at the Petit period of euphoria, he was quite pleased with himself, smiling, he even thinks that this happiness.
Starting from the second day of the joy of acquisition begins to fade rapidly. Peter begins to get used to a new TV, and a month later tests
disappointment, Sadness appears on his face. Petya still have enough money, and to drown his despair, he dreams about the new smartphone.Why it happens? Emotions - the phenomenon is very fleeting. Sometimes we are happy, sometimes - no, and it's an endless cycle inherent in human nature. Moreover, people overestimate the importance of emotional events and the value of things. At the moment of understanding that the purchase does not bring former elation, frustration appears, and to stifle it, man again tries to buy something, restoring itself in a vicious circle a waste. Even if there are no funds on the TV money is spent in the nearest mall.
To avoid this side effect is quite simple. This will require only common sense.
- Determine the extent of the need for the planned acquisition.
- Is it possible to purchase goods of similar quality, but at a lower price?
- Make a personal budget plan for a certain period of time (days, weeks, months, years).
Yes, it is banal and basic things, but most people forget about them, incorrectly assessing the benefits of shopping. Such an assessment ratio of earnings and expenses obtained is frustrating. If the value determined is true, even after a long period of time you will receive the emotional satisfaction from the use of the purchased items.
Time to act: multiply free money
When the first step is made, the problem and its causes have become aware, it's time to go to the second step - action. Let's be realistic and recognize that there are no results without a concrete action. You can not get rich just by thinking about how to become rich.
Saving money on deposit at the bank - it is certainly good, but do effectively? Consider the following example. This time we will meet with Misha, who has long been interested in accumulation of funds. Misha with astonishing stability lays about 20% of their salary to a bank deposit with a rate of 6.5% per annum. The amount of interest is taken as close as possible to reality in Russia today. Misha managed to save 500 thousand rubles in the previous year, taking into account capitalization, he received an income of about 32 thousand rubles, and the current - about 65 thousand.
Misha has Vasya friend who also has 500 thousand rubles, but actively invests part of its funds in securities on the stock market. Bob knows that there is a risk of losing money, why not invest everything, and only 10% of the capital, the other 90% are on a bank deposit.
Again, let's be realistic. Bob simply buys shares of well-known companies and keep them. In the first year Bob lost money because of the market decline, the loss amounted to 5% of the invested money in securities. As a result, profits almost was not, but thanks to the deposit Vasya remained even.
The following year Bob again invested 10% more in securities, the total size of its investments amounted to 75 thousand rubles taking into account the 5% from the previous year. This year has seen record growth in the stock market and Vasya tripled the funds invested in stocks. As a result, the profit amounted to 225 000 rubles, plus another 30 thousand from the bank deposit.
Bob earned considerably more than Misha, almost without risk. The resulting profits and further accumulated money (in addition to the deposit) allowed Basil to implement long-held dream - to open a small cafe and please other people the best coffee in the neighborhood. Bob is happy.
The moral is: the money - it's part of our daily life, we should not treat them wasteful. It is enough to comply with a few rules:
- spend money on what is really needed;
- delay free money in a bank deposit;
- invest a small portion of securities;
- exercise their true dreams.
And how do you feel about money?