Proper management of your own funds is not only a sign of prudence, but also a guarantee of financial well-being. Many compatriots mismanage the family budget, which leaves them without money, losing capital or becoming a hostage of the credit system. To avoid personal bankruptcy, it is recommended to heed the advice and spend money correctly, plan the budget competently.
Mistake #1. Impulsive and rash purchases are dangerous!
Hiking in supermarkets, as well as virtual surfing on the Internet stores for many becomes the reason for emptying the wallet. Most often this is caused by impulse purchases, when the customer puts in the shopping cart the things that he did not originally intend to buy. This works especially well in stationary outlets, where there are stands with small items near the cash register. Under normal circumstances, the customer may not pay attention to them. However, the long queue and waiting do their job – the product ends up in the basket.
Retail outlets, including virtual ones, have learned to play on this weakness. They place on the order page a list of additional goods that may be of interest to the buyer. The total amount of such purchases can be impressive. The buyer doesn’t even notice that he’s robbing himself.
Important! Many online stores are ready to sell goods on credit or by installments. This stimulates sales, but often becomes a real bondage for the buyer.
To avoid this situation, it is recommended:
- Plan purchases and not be distracted by offers;
- Allocate a budget by setting aside an amount for utility bills, top-ups, travel and meals, clothing and household items, school supplies, etc;
- Allocate a certain amount for hobbies, entertainment, gifts, etc.
- Problem Solution. To avoid unnecessary spending, it is recommended to shop in a good mood. It is important to go to the grocery store well-fed, and to take goods only according to an approved list.
Mistake #2. Lack of money for a rainy day
It is also rightly called a financial safety cushion. This is the very savings that can be used to address urgent problems. Unforeseen expenditures are often accompanied by illness, emergencies, urgent travel, and so forth.
A financial cushion allows you to stay afloat even in the toughest of times. The sum insured allows you to:
- In difficult situations, solve a problem quickly;
- To avoid taking a loan;
- not to borrow money from friends;
- Compensate for losses in case of property damage;
- help your loved ones, etc.
- To protect yourself financially, it is recommended that you set aside at least 10-15% of your salary to form your own “emergency reserve.
Attention! Many banks offer to open a savings account. This is a kind of piggy bank, which you can look into in case of unexpected life situations.
Mistake #3. Credit traps
Few people are willing to live within their means and not look at a product for which there is not enough money at the moment. Already, many high school and college students are willing to go into debt (as soon as they turn 18 or 20) to purchase newfangled gadgets. A large number of loans:
- “eats up” everything you earn,
- Makes it impossible to save money and create your own financial cushion;
- Forcing you to take out new loans, often to pay off old ones.
To exclude unreasonable expenses and getting into financial servitude, it is recommended to assess your income and compare it with future expenses – the repayment of the body of the loan and the interest on it.
Attention! Often financial marketers offer you a payroll or debit card plus a credit card. Do not be tempted by the banks. Financial institutions are pursuing their own goals – their main task is to force the loan.
Mistake #4. Financial illiteracy
A common mistake that leads to:
- Unprofitable loans;
- Lack of planning;
- accumulation of debts;
- A total lack of money.
To solve such a problem, you can enroll in courses, read special literature, watch lessons on specialized sites.
Attention! There are several special applications that will help you to intelligently distribute the budget, so that at the end of the month you will not be left without funds.
Mistake #5. Lack of pensions
This is a frequent problem for modern people. When you are young, few people think about retirement and saving for a comfortable old age. Pensioners tell us that even on the available social benefits it is difficult to stretch out. To protect oneself, it is recommended:
- Invest funds in investment projects. It is recommended to choose reliable funds for this purpose. Let them promise a small percent, but for many years it is possible accumulate a decent sum.
- Study the pension programs developed and offered by commercial organizations. Before making a deal, it is recommended to study the contract, the conditions, choose a suitable program, and then regularly contribute a certain amount.
It is recommended to contribute savings to different funds. It is important that when you reach retirement or a certain age, you can use them.
It is important to remember that financial well-being depends largely on the planning and literacy of the decisions made.