Why is it important to remember that the money - it is a tool, not a goal

Sometimes we take the money, or as something hostile, constantly complicating our lives, or as a goal. In fact, the money - it's just a tool, and awareness of this will help you get your finances under control.

The benefit of such an approach

It facilitates planning

Not so easy to calculate their costs and plan the budget, when the word "money" is causing your fear and anxiety. If the numbers at the end of the month will never meet, you simply stop trying to keep track of your expenses and income. But it is worth thinking about money as a tool, as you will be able to focus on solving problems rather than on emotions.

It all starts with an important goal for you. Money itself - is not the goal. You must know what you want to spend. To feed his family? Pay off debts or to cover medical expenses? Travel? When you know your purpose, you can plan and expenditure required to achieve it. For example:

• Sell ​​something to save up for a rainy day.
• use the method snowballTo two years to get rid of all the debts.
• Look for another job, because now you are not so scared to leave the unloved place.

He removes the guilt for purchases

Better one time to invest in quality items than often buy cheap. For example, researchers from the University of Michigan for seven years to track purchases of toilet paper in the 100,000 US households. It turned out that families with higher incomes to buy securities at a discount of 39% of the cases, and low-income families - only 28%. First as an average bought more rolls. It turned out, families with lower incomes pay for a roll of approximately 6%Frugality is Hard to Afford.

Inability to buy something in bulk does not allow to plan purchases and to take advantage of sales. Conversely, failure to purchase something at a time, until there is a sale, not give to buy in large quantities. Financial losses in this case eat up to half of the savings in buying cheap things.

Yesim Orhun (Yesim Orhun) and Mike Palazzolo (Mike Palazzolo), authors of the study

Of course, when you are trying to make ends meet, you are not up to the quality. But many do not want to pay for a thing more, even when they can afford it. We do not want to spend money, because we are afraid that we will not stay them. We feel guilty when we spend more than necessary, even if it is just more expensive toilet paper.

But tools for and made to be used. They should not gather dust on a shelf. Do not think about how accumulate and to spend money, think about how their use. Putting aside the money we just leave them for later use. A purchase - it is just suitable for the use of a work tool. And expensive high-quality thing, and sometimes the most effective way of using it.

In addition, a practical approach to the money helps to keep from reckless spending. We begin to understand that, incorrectly using this tool in one area, then we simply will not be able to use it in another.

How to change your attitude toward money

The main thing - to learn to use tools so as to live the life that you want. Here are some practical tips.

Decide what is important to you

Since the money - it's not a goal, it is necessary to know what exactly are your goals. That's why many financial planners are beginning to work with the client to the single question "why?". When you know the answer to all your financial decisions are taken in accordance with the intended purpose.

Determine your priorities

Another very helpful to make a list of expenses that bring you the most pleasure. It will also help to control costs. For example, you like to dine in the café and visit family or friends living in another city. Set priorities, you will be able to decide what spending to cut.

move slowly

When you have a very low income, to change the attitude towards money is particularly difficult. Any target compared to revenue will seem elusive. So break your goal into smaller steps. For example, if you need to repay the loan, do not think about the whole amount and the payments for a month or even a week. Since the amount will not seem quite nepripodomnoy. It will be easier to pay it, and feel that you are in control.

conclusions

For most of us, money matter more than they really are. They remind us that what we lack. The fact that we can not afford. But in essence the money - it's just a tool. Try and treat them as a tool. Of course, it will not change your financial situation in a day, but the only way you will begin to control your finances.