Financial well-being is not in numbers, it is in my head

Keep the motivation, even if you have to spend more

Keep your finances under control is not easy, but we need this feeling - the feeling that everything is in our hands. A positive feed sensations motivation.

For example, when it comes to debts"Stack method» (Stack Method) gives more on paper than in reality. In this method, you will first of all strive to pay the debts with the higher interest rate.

But in practice, it helps people more "snow globe debts» (Debt Snowball), on which the first debt is paid little, and then - big. This provides a sense of order and control over their finances.

On the one hand, by paying small debts first, you will lose more money on interest. But, on the other hand, if the stack method does not work for you, and you periodically breaks down, disrupting their plans, you will pay for the debts of longer, and therefore lose more.

Control of your finances will not help you to suddenly get out of debt or get rich. But you, at least, will take financial matters into their own hands.

You can play on a sense of control, not only in a situation of debt. For example, when you are planning your budget or put financial goals, focus on control. Develop a plan that creates the feeling that you are in complete control of their finances.

Maintaining a sense of control, you keep motivated. And this, in turn, will help you to comply with the rule of "spend less than you earn."

Monitor your impulsive nature

To spend less, you need to control your budget. Calculate everything and just laid in the budget for each item. But impulsive, emotional behavior prevents follow simple math.

You know that you can not afford this smartphone, but it does not matter. You want it now, and some numbers on the price tag can not stop you.

Impulsive behavior is often observed in the case of heavily reduced budgets. For example, people want as quickly as possible to pay debts, and this becomes a major item of expenditure, while all other costs are reduced greatly. In theory, it will quickly pay off the debt, but in practice it does not work, because the person breaks down and spend money on some entertainment.

To avoid such failures, create a realistic budget. Consider limited willpower and leave a small window for the costs of entertainment and enjoyment. So you will be more likely to keep within budget.

Here are a few techniques that will save you from unplanned, impulsive purchases:

1. Create a list of things that you have. When you want to buy something, check to see if this thing on your list. You can do this without the list: just remember, if you have such a thing, and if it is in good condition, give up the purchase.

2. Remember how rubbish accumulated in your home due to unnecessary purchases.

3. Stay away from stores that attract you the most.

4. Do not store information about their payment card on the sites that attract you the most.

If these methods were not enough, we have a whole article about how to stop buying unnecessary things.

Satisfy your need for compensation

The principle of "spend less than you earn" implies that you simply save the money that you earn.

In reality you are working and want to get rewarded for it in the form of opportunities to spend money for pleasure. This is quite a natural need.

The problem is that many of us choose their reward thoughtlessly, sacrificing for the sake of pleasure for its comfort and stable financial position. Today you enjoy yourself a new purchase, and a month later spend nerves and health, trying to pay all your debts.

Here are some ways to help you satisfy your need for compensation and does not exceed the budget:

• Prioritize. Leave the box for free to spend, but do it wisely. Spend money on entertainment, that bring you the most pleasure. If you think about it, a lot of useless spending spur of the moment will disappear by themselves.
• Reward yourself for proper handling of money. Do not celebrate getting money, celebrate, if you managed to save them.
• There are many enjoyable ways to reward yourself that do not require large investments. For example, a hot bath with relaxing essential oils.

Take their inability to predict the future

Many of the personal financial management techniques offer to take care of themselves in the future. Save money now that the "future you" can live a decent life.

The problem is that this "future self" for many of us no closer than a stranger. It is easy to calculate how much you need to set aside to retirement have decent savings. But here really care about it - is another matter.

It is important to relate their present with the future. one study on It proved that people better manage to save money if they concentrate not on some abstract goals in the future, but in the process of accumulation.

Before the experiment, some people were instructed about the fact on what should focus on.

Concentrate on the amount that you need to save now, and not on how much will save a month or a year. Future repeats now, and if you happen to save now, will in the future. And if in this cycle, you can not save money, most likely you do not get to do so in the future.

This does not mean that you do not need a goal. But the concentration on the process helps to connect the present with the achievement of objectives in the future.

Put smaller goals on the way to a big one. They will help you keep the system reward for saving money, but also make the accumulation of automatic - in other words, make a useful habit to spend less than you earn.

So, when it comes to money, calculations and strategies are important, but even more the meaning of your habits and behaviors. If you learn to control them, it will be much easier to follow the simple rules of personal finance.