My experience in dealing with money

Money, salary, bonus, bonuses, allowances, discounts... All around people say and think about the money. After all, the concept of money is so simple that any child at the age of three years it realizes. Yes, there is a child, even monkeys understand it. This convinced in the course of their experiments Keith Chan. When you stretch once again for his wallet, think: "What if a monkey handles money smarter than me?".

In order not to feel silly monkey, I adhere to the following principles:

Know how much you need the money. It sounds corny. But now you can answer questions such as: how much money you need to maintain the same standard of living? Just to survive? And for a change in life (buying a car, marriage, and so on)? I am sure that you, there will be difficulties with instant answers as I have these questions. But the monkeys are no such difficulties. Therefore, they do not work more than they need, and feel happy.

Distinguish between cost and utility. Mobile phone manufacturers are coming out with new models every year, or even every month. They are difficult to blame the fact that they want to earn more money, motivating us to change the phone so often. But what will change in your life if your phone camera will be a couple of megapixel anymore? Monkey still some CellPhones crack nuts.

Create passive income. Probably just dumb not to give advice to invest in their lives. But this is not no tricks:

• consider income
• Cchitaetsya cost of ownership
• assess a risk
• and choose from the options the ones that interest you.

For some reason, many people forget some components. That does not take into account that the rental apartment a couple of years would be necessary to re-stick wallpaper - did not consider the cost of ownership. The crisis in the country and the bank does not return contribution - lost assess the risks. That will invest all the money in one asset - and who will consider several options? Even a monkey trying to raise several children, since which it still has options for creating passive income.

Limit your costs artificially. In each of us there is a spender. If you struggle with it every day, you can become a miser. Believe second much trouble. Smart people have come up with for a long time for myself limitations ways that they choose themselves. Choose the appropriate for you. Among the simple, so effective, I would recommend are:

• Rule four envelopes
• Keeping all personal / family budget
• Set aside a fixed portion of income for the future

All of this cuts down your expenses now, but makes your future is predictable. It does so chimpanzees hiding a coin from his companions on a rainy day, so that was something to buy sweet grapes.

Remember, money is only a resource to achieve your goals.

And what are the principles of treatment with the money you have?