How to get finances under control

To learn how to handle money, do not need to learn any clever tricks. Just follow the simple rules described in this article.

Why do people love to complicate the simple things in nature? Perhaps this is part of our nature. It seems that we always restrict ourselves, and at the same time we did not control their spending. We are trying to follow some useful tips, though in practice their use is highly questionable. So why this unnecessary talk? Here are 6 really effective tips to help you spend your money wisely.

1. Keep track of your money

Learn to meticulously keep track of all your income and expenses. You need to know where the money comes from, how much of what they spent. If you do not possess this skill, you never learn competently conduct budget and you can not make any savings.

2. Spend less than you can afford

Well, if you learn to live within our means. But it is better to go further. If you start to spend even less than you can afford, the effect will not take long. You will be able to defer the money saved or put them on a bank account. This money will be the basis of your future financial well-being.

3. Do not confuse spending with attachments

Sometimes it seems that this is one and the same. But in fact, between the ordinary expenditure and investments there is a fundamental difference.

Investments - these are financial costs as a result of which you get some concrete benefits (professional courses, the purchase of shares) Under normal expenditure your money goes to the fact that in a short time will lose its value and, accordingly, will not do you any good (lunch at a cafe or a new summer dress).

Reasonable control of your finances It does not mean that you will always prefer to usually spend attachments. Spending - it's part of our lives. You just need to understand how to prioritize, to make your income work for you.

4. You pay for quality

To learn how to spend money wisely, not necessarily always stop your choice on the cheaper goods or services. Instead, analyze what is really worth spending money. Sometimes, as a result of this analysis, you will choose a more expensive, but the quality thing.

At times all of us are tempted to buy cheap shoes, but if a couple of months you will have to replace it with a new pair, you will not save a dime. It is better to take the more expensive shoes, which will be enough for two or three years. Do not forget that the miser pays twice.

5. Avoid loans

Interest on the loan - a fee for what you are trying to live beyond their means. Yes, there are situations in which the loan actually saves the situation. But you can easily fall into dependence on permanent loan. The consequences are very sad for your wallet. And with the idea of ​​learning how to control their financial condition in general you have to say goodbye.

6. Do not confuse desire with the real needs

Modern advertising entices you to the contrary. It's a whole industry, the factory needs. But actually we do not need so much. This is mainly food, safe housing and ability to maintain health.

And how did this self-cleaning, solar-powered, fragrant lavender and controlled by a mobile phone litter box? What a miserable life you will drag out without this vital gizmo!

In fact, The above information in this article - is not supersovety to achieve material prosperity, but simply banal description of the principles to be followed by any financially literate person. The sad fact is that what used to be the norm, is now seen as a major constraint. Perhaps we should take a cue from the older generation to learn and to use common sense. Then you will really be able to take their finances under control.