How to learn to control and manage your money. 9 Basic Financial Rules

Those who do not know how to manage their money always end up without money. If a person works and sits without money all the time, then the question always arises that he:

• or have to change jobs
• or he doesn't know how to manage money at all
• and doesn't know how to save

We will teach you how to learn to manage your money in this article. Because there should not be a situation where, after receiving a salary, 10-15 days later, and some people run out of money sooner, and the process of “struggle for survival” begins.

Vicious circle

A person may encounter a situation that seems paradoxical. Having received a good salary, after 1-2 weeks he finds himself practically without funds. Every month he expects certain expenses:

• rent or mortgage; • credit; • Payment of utility services; • buying groceries.

This is just a small list of possible expenses. According to DAICO CEO Mikhail Bondarenko, liabilities are any expenses, for example, loan payments, renting an apartment, spending in stores, etc.

Monthly obligations and inability to manage your own income create a vicious circle. You can break it. You just need to learn how to properly and successfully manage your money.

Mikhail Bondarenko: “The most important rule is to reduce the number of liabilities and increase the number of assets. This is a classic rule from Robert Kiyosaki's financial management methodology. This rule is relevant for the family budget and business equally. This rule is very effective when you start to put it into practice in everyday life.”

Secrets of saving

How to save money with a small salary? All of the above tips are aimed at saving and earning money. But what if you can’t jump above your head?

Then you will have to save on everything. For example, you can start with food. After all, spending on it is an important item that has a surprisingly large number of unnecessary items. How to manage money?

So, to learn how to save, you need to follow these tips:

1. Don't go to supermarkets on an empty stomach. Of course, it's best to leave your credit and debit cards at home.
2. Convenience foods are an overpriced luxury. You can prepare similar dishes yourself. This technique will help you save a lot of money.
3. Make a shopping list for the week and plan a menu. This way you won’t have to buy anything unnecessary.
4. Buy more frozen food and prepare for the winter. Out-of-season fruits and vegetables are expensive. Therefore, to save money, it is recommended to stock up on food for the winter.
5. Avoid snacking and using a variety of coffee and food vending machines at work/in stores. It's better to take homemade food with you.
6. It is better to buy products on sales and promotions. The same goes for clothes and shoes. It is recommended to take a closer look at the bottom shelves in stores - there are usually inexpensive goods with good quality.
7. Wholesale purchasing is the key to success. Many stores and grocery stores sell goods to “wholesalers” at significantly reduced prices. In addition, storing supplies for future use ensures that a person will always have food. You can purchase both frozen foods and cereals with pasta.

All these methods can really save a lot of money. Most likely, it will not be possible to develop such habits right away. Failures and acquisition of unnecessary things are possible.

However, this does not mean that you need to limit yourself in everything. Credits and borrowings, as already mentioned, are acceptable, but as an exception. They are allowed to be taken only in emergency cases, and to be paid as soon as possible.

How to manage money

A person has been undergoing several training courses for 16 years, but during this time no one taught him what proper money management is. It is also not possible to master these skills through family. It’s rare that families know how to manage finances rationally. All that remains is to acquire this important knowledge and skills for life on your own.

There are general rules on how to create effective money management:

• cost planning; • search for new sources of income; • rational use of loans; • making purchases in cash; • investing in your own development; • accumulation of reserves; • setting goals; • study of financial legislation.

Each of these points is worth understanding in more detail.

Availability

How to manage money? You will have to refuse cashless payments. After all, credit cards and debit cards do not show the account balance before making a purchase. Therefore, a person is tempted to spend more.

If you spend cash, you can always see how much is left after a particular purchase. Some recommend withdrawing fixed amounts from bank cards before shopping, and leaving bank plastic at home. Not a bad way to save money.

Expense planning

It is better to manage finances not in your head, but on paper or in an electronic document. Mikhail Bondarenko: “Now there are many convenient mobile applications (including some banks within their application) that help you figure out how much money comes to a person per month and how much goes out. If you ask yourself frankly how much money was spent last month, very few people will know the exact figure. And you need to know it.”

Notes will help you learn to plan. By making a list of necessary purchases, you can estimate their cost and importance. Some of them may be a waste of money.

“In order to gain financial independence and ensure a decent future, you need to very strictly control the cash flows within your family and enterprise. You need to start small - create a table where all your assets and liabilities will be entered, and your daily expenses and income should also be entered.”

Venture investor Alexander Krasavin: “Distributing money among several types of expenses will allow you to control your financial expenditure and give you an understanding of which area of ​​life you need to save, and in which you need to buy something more expensive.”

Use the 72 hour test

Of course, you can think about where to invest your money when you have it. What to do if they are not there? The answer is obvious: you need to start spending less. And there is a killer simple way to do this! Luckily for you, in the modern world with its online stores, where you can buy almost anything “in one click,” they have come up with an excellent tool that allows you to control costs. It's called a "basket".

Let's be honest: Of the things you order from online stores, very few things need to be purchased immediately. Therefore, make it a rule to leave items in your cart for 72 hours. When you check back three days later, ask yourself: What’s more important—the items in your basket or getting closer to achieving your financial goals? And without regret, delete what you can do without. This technique works great because it allows you, on the one hand, not to immediately say “no” to purchases, and on the other hand, not to make purchases under the influence of emotions.

Search for new sources of income

An additional source of income will give you confidence in the future. The person will be less dependent on the basic salary. The main thing in this matter is desire. So the source can be the ability to knit hats. There is always a demand for them, and if you do it efficiently and creatively, your income will increase.

It is worth selling all unnecessary things. There is no need to stand in the market and waste time on this, just use the Internet. After studying financial literature, you can invest money in banks and make investments. If a person has unclaimed property, it must be rented out. This way, I won’t accumulate debts, but passive income will appear.

Mihaly Bondarenko highlights assets - this is what brings us income: renting out real estate, dividends from purchased shares, interest from bank deposits, additional part-time work.

Proper handling of finances

When a person treats other people well, they respond to him in kind. In the case of money, an almost similar process occurs.

If a person regularly says “I don’t know how to handle money ,” then eventually reality answers him in kind.

Positive and respectful of finance is the description of a wealthy financier. His material wealth is stored in a reserve fund, assets work with daily profit, respect and value grows in the family.

Loans (possible, but carefully)

Often a person wants to get his favorite item instantly. If these are just regular shoes, then you should wait for your salary, but if we are talking about equipment that will bring in income, then there is no need to wait. Bank loans can solve this issue.

Venture investor Alexander Krasavin: “Don’t forget about credit cards - they help keep you on your toes and at the same time buy something, essentially, in installments. Many banks have an interest-free loan repayment period; it varies from 30 to 90 days.”

Credit should be used, but within reasonable limits. “The advantage of a credit card is that it allows you to make a one-time large purchase, the cost of which you can return within 2-3 months (depending on the conditions of your program), transferring money in parts from your salary.”

How to manage money: 10 practical tips

People manage money in different ways, but everyone wants to do it with maximum benefit for themselves. Some people are lucky enough to have a pragmatic mind and for the first time after just a few years of earning money they manage to enter the spending efficiency mode. But for some people, in this regard, everything is not so rosy - money consistently runs out in the first two weeks after their arrival. Moreover, this absolutely does not depend on the level of salary. The former may earn slightly below average, while the latter may earn much higher.

And if you consider yourself, or suspect that you belong, to the second category, then we have prepared for you some tips on how to manage money correctly.

So, how to manage money correctly:

1. Control your expenses

First of all, you need to pull yourself together and start keeping track of all your expenses. There are many options on how to do this. This could be a good old ledger in which all, even the most minimal, expenses will be meticulously and daily recorded. But this method also requires appropriate discipline. You can use modern methods - install an application for tracking expenses on your smartphone, but even here, no one will enter the data for you. Another option is to move everything into the world of electronic money and give up cash, then everything you spent can be viewed in the application or on your bank’s website. In any case, if you decide to radically change your approach to shopping, then you will need to choose something that will allow you to monitor “leaks” without stress and nerves and find a way to spend money correctly.

2. Pragmatic approach

Buy only what you really need. Truly successful people, including in financial matters, never sweep off the shelves in the store everything that they more or less like. It is best not to go into a shopping mall, but first decide why you are going. The best option is to look at the assortment of stores from home with a mug of tea, and then postpone the purchase indefinitely. So to speak, let the desire brew and only when you are completely sure that you cannot live without this thing - go to the store and buy. Another good option is to choose one day a month on which you will make one or two large purchases. This approach does not limit the possibility of going shopping, but allows you to use your money profitably. Set a large purchase limit and buy items that do not exceed it in one day. You will notice that the amount of unnecessary things will be reduced, since you will have until day X to understand whether you really need a new phone or a designer coat.

You can conduct an experiment, do not limit yourself in purchases for a month, provided that you record all spontaneous purchases. Afterwards, analyze the list and understand that uncontrolled shopaholism is the reason why you have not yet become a millionaire.

3. Lack of emotions when spending

One of the main motivators of sudden purchases is emotions. A bad or, conversely, good mood, permanent stress can become a catalyst for thoughtless spending. The latter is worth fighting in other ways, that is, visiting a doctor or doing reflection and independently understanding what exactly brings into your life a feeling of dissatisfaction with it and, as a result, pushes you towards shopaholism. To understand some of these aspects, you can take our tests and, based on them, find out in which area the main failure lies.

It is more difficult to fight mood and purchases, although it is possible. You can simply not visit stores at critical moments or, if there is no way out, write lists and take the exact amount of money with you. A good option could also be the so-called controlled spending, when once a month, for example, immediately after your salary, you allow yourself to buy an absolutely unnecessary, but extremely fun thing, and even more than one, but on the condition that they do not exceed a certain limit. This will relieve the emotional stress of having to constantly save and monitor your finances.

4. Don't react to brands

In most cases, it makes no difference what brand you have for your phone or laptop, or what designer your coat is from. Running after brands, especially in conditions where finances objectively only allow one to look in their direction, leads to debt. And this is another trickle that does not allow you to effectively manage your finances.

Of course, you shouldn’t completely abandon expensive brands. If you can’t live without a phone that costs as much as a cast-iron bridge, then you can simply save up for it. It may not be quick, but during the time that you put it off, you will be convinced that you need this thing not only because a colleague at work or some celebrity has it. And the joy of buying something that you have dreamed of for so long is many times greater than if you took it on credit.

5. Don't accumulate debts

The only thing worse than living on empty pasta in the last week of the month is living on credit. Of course, it’s difficult to resist all this advertising, which shouts from every iron that any thing can be yours today “without prepayment or overpayments.” And no one asks you to refuse loans if you approach them with all seriousness and realistically assess the possibilities of your salary. After all, this is truly a way to make large purchases quickly.

The main thing is to repay the borrowed money on time. And, of course, do not use a credit card as a kind of analogue of a debit card, especially if its limit is higher than you can afford. And also do not forget that in addition to borrowing money yourself, you can also suddenly find yourself in debt to the state; we are, of course, talking about fines and taxes.

6. Open a savings account

Or a special “jar”, ​​as in childhood, to put part of your income into it, but this method is only suitable for relatively small amounts, since no one has yet canceled inflation.

Opening a savings account so you have somewhere to invest your money is now easier than ever. To do this, you don’t even need to visit a bank branch; you can do everything from your phone. Better yet, attach to the account the so-called piggy bank function, which will transfer a certain percentage or a fixed amount to a savings account from the receipt or expenditure of fixed assets. This method will allow you to save money without much effort, although the total amount will vary from month to month. And from this it follows that the piggy bank is best used as an additional means of saving.

It is best to transfer a certain amount to a savings account once a month. Moreover, the deposit itself can be perpetual, which will not deprive the owner of access to money, but will not give a large return on interest and will require a certain amount of willpower. Or it may be limited in time, which will allow you to save money, for example, for a large purchase quickly enough - you will need to estimate how much money you can allocate per month and, based on the amount, determine how long it will take to buy what you want want to.

7. Buy in bulk

A good way to save your family budget is to buy products with a long shelf life in bulk. Cereals, sugar, canned food - all this is necessary every day and it is much more efficient to purchase them at a wholesale base once every few months.

With clothes and other things, it would seem that this approach should not work, only with hosiery, but you are mistaken if you think so. There are entire communities whose activities are aimed at saving money when purchasing both groceries and other goods. This refers to so-called joint procurement. The essence is simple - the organizers find wholesale bases, and the participants leave requests for the products sold, when a certain limit for wholesale is reached, the order is placed, and there are no downsides to this method of shopping, in general, only the time it takes to collect the minimum amount and for delivery . And the advantages are undeniable: firstly, buying good quality items at manufacturer prices, and secondly, the opportunity to buy two for the cost of one sweater from the mass market. True, at first you will have to control yourself and not try to buy everything, because such an approach, of course, will lead to the fact that no savings will come of it.

8. Prepare your sleigh in summer

Remember and follow one rule in life: buy vegetables in season, buy shoes and clothes out of season. In the summer, for example, the same cucumbers can be bought for a conventional ruble per kilogram, but in winter the prices will be completely different. But with clothes it turns out to be a completely different game - in wet seasons, jackets cost as much as possible, and in warmer months, capital is built on T-shirts.

Therefore, if you have embarked on the path of saving, then it is worth purchasing vegetables in the summer and making preparations from which you can get your dose of vitamins all winter, and in the winter for pickles, selecting T-shirts for the summer in online stores.

9. Think about retirement

No matter how old you are, if you are already working, then a pension is already present in your life, since your employer transfers a certain percentage of your salary to the pension fund every month. You can get a statement of the amount of these wealth at any time on special websites and find out the funds there, as well as estimate what the size of the payments will be after going on this indefinite leave. We bet you won't be impressed. So you should think about what to do and who is to blame, and then create a special account for your future happy old age. Of course, when you already have to live within your means, there is very little left over, but even this can be a good help.

10. Spend on your education

In the case when you don’t want to deny yourself something and buy the first thing your eye catches, you should make yourself a highly qualified specialist for whom they will fight. This requires certain investments in your education, both temporary and material. But it's worth it.

Just decide what you still want to become when you grow up, or maybe make your hobby something that brings in your main income and develop in this direction. Therefore, a good answer to the question: “Where to invest money so that it works?” is education. Spending money with an eye to the future is better than spending money to appear richer than you actually are.

Other ways to invest money

Of course, you can play on the stock exchanges, bet on sports, hope for sports lotto and your own luck, but all these methods require not only the status of a favorite of fortune and an analytical mind, but also a certain financial cushion that will not allow you, figuratively speaking, to die of hunger , if everything doesn't go as planned. Risking everything in this matter is not the best approach.

The best way to invest and increase funds has always been and will always be real estate; of course, we are not talking about a single home, but about premises for rent. But here, too, a certain level of income is required to maintain it and significant initial costs.

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Self-development

It is worth remembering to educate yourself. A person should not stop studying after receiving a diploma. The world is evolving all the time, new opportunities appear. Don’t neglect trainings and courses. They will allow you to understand new areas of business. Avetis Vartanov reports: “Capital must work. Stock market instruments will help with this. The source of passive income can be shares of dynamically growing domestic companies or federal loan bonds, the guarantee of return of funds and coupon payments for which is provided by the Government of the Russian Federation. In any case, the return on securities will be much higher than that of a deposit.”

Results

From now on it’s clear how to save money with a small salary. All of the above methods will help not only save money, but also attract cash flows to a person.

Don't expect quick savings. People who are not used to saving may suffer from restrictions at first. But then the advice offered to your attention will become a habit that accompanies the citizen throughout life.

Running out of money quickly? It is important to remember that sales and inexpensive items are not a shame, as some people think. The price is not always justified by the quality. In stores you can always buy inexpensive and high-quality things and products.

Savings

It's good to have some reserve in case of unforeseen circumstances. To do this, it is enough to save a certain percentage of your income every month. If possible, you can also accumulate savings. They will help you achieve your goals. Mikhail Bondarenko: “Reduce those expense items that begin to occupy a large share in the visual diagram. Strive to ensure that the amount of income exceeds the amount of monthly expenses, and then you can start investing 10-20% of your free money in various assets every month.” Venture investor Alexander Krasavin: “Money management is divided into two areas: either you just want to preserve your existing savings, or increase them. In any case, you should always strive to ensure that you have the opportunity to save 30% of your salary, and ideally 50% into a bank account with a minimum of 7%, which will at least cover inflation. The remaining 70% or 50% should also be distributed to basic needs: food, clothing, everyday expenses, and also allocate an emergency reserve from this amount, which you can later deposit.”

Summary:

Books on financial literacy

Books will help you understand the basic principles of saving. You need to read them daily, highlighting one piece of advice from psychologists and financiers for constant use. The following books will help in solving the problem:

1. George Clayson's book on managing finances and personal income "The Richest Man in Babylon."
2. Robert Kiyosaki wrote the book "Rich Dad Poor Dad" in which he tells a personal story about having two dads - one was rich, the other was poor. And each of them gave their own advice.
3. Benjamin Graham's book "The Intelligent Investor" talks about the benefits and basics of investing.
4. “Think and Grow Rich” - author Napoleon Hill helps a person to psychologically tune in to improve his financial capabilities.
5. “Money, or the ABC of Money” - famous business coach Bodo Schaefer talks about money management.
6. “The Path to Financial Freedom” by business coach Bodo Schaefer helps people get rid of material burdens forever.
7. Vladimir Savenok and his book “How to draw up a personal financial plan and how to implement it” helps in the distribution of money.
8. Vladimir Savenok in the book “A million for my daughter. Step-by-step savings plan" talks about ways to save money.
9. Yulia Sakharovskaya “Where does the money go. How to competently manage a family budget” - a woman’s view of saving money.
10. John Bogle's "The Intelligent Investor's Guide" - the author helps you learn how to invest money.

These ten books will be enough to change your own thinking and learn how to manage money.

Movies about money

You can start changing your consciousness with films. We suggest viewing the following paintings:

1. Bearing game, 2015. The film talks about people who were able to profit from the impending crisis.
2. Pirates of Silicon Valley, 1999. Here is the autobiography of Bill Gates and Steve Jobs.
3. In pursuit of happiness, 2006. How can you become happy in a hopeless situation and lack of money? But something like this is possible.
4. Social network, 2010. The film will be of interest to young people because it talks about the discovery of Facebook.
5. The Man Who Changed Everything, 2011. With financial constraints, it is possible to create a competitive baseball team.
6. The Wolf of Wall Street, 2013. The situation in the 80s, when financiers were considered strange people and profited from fraud.
7. Risk limit, 2011. The situation of overcoming the global crisis is presented.
8. Boiler room, 2000. A film about the opening of an underground casino.
9. Vicious passion, 2012. The film presents the adventures of a swindler, a womanizer, which can be considered from the point of view of profitable financial moves.
10. In the company of men, 2010. Several men are left without work, so they are reconsidering their lives.

_

Setting goals

It’s easier to accumulate savings if you have a specific goal, or better yet several. We are not talking about a specific amount, but about certain benefits that a person will receive when using them. This could be buying a home, a car, a trip abroad, a comfortable old age, or educating a child.

Venture investor Alexander Krasavin says: “You shouldn’t keep all your savings in one monetary unit. Try to save money not only in rubles, but also in euros and dollars. You can also add here a more stable currency, for example, pounds.”

Goals

How to save money with a small salary? Experts emphasize that saving is easier when there is a specific goal. It is better if it is achievable and small. For example, purchasing a new computer or camera. But no one canceled large purchases like an apartment or a dacha.

When a person has a goal, he begins to strive to fulfill it. Accordingly, over time you will be able to save, save and get closer and closer to buying something you want.

Money and law

A person is responsible for his own money, so you need not only to be able to earn it, but also to understand issues of taxation, banking, and investing.

According to Mikhail Bondarenko, diversification is important: one month we bought shares of large companies, the next month we bought government bonds, in the third month we bought an inexpensive garage that can be rented out, etc. In order not to be deceived or held accountable by the state, you need to know the current legislation. Only complete transparency of your financial flows and an understanding of what category it belongs to will help you build competent budget planning with the ability to constantly save and thereby accumulate your wealth.”

Use an overnight test

By following the plan, you will put your current expenses in order. But past investments may have been made without considering your financial goals, driven by emotions, or influenced by people you know. Therefore, sooner or later you will have to deal with previous investments.

To do this, imagine that overnight all your investments were returned to you in cash. And ask yourself what investments you would make again under the same conditions and without losses. All deposits that fail this test should be redirected.

Money values ​​respect

You should not judge people by their financial capabilities. Modesty in money matters will not be superfluous, so you should not tell everyone about your good financial situation or your desire to save a certain amount.

Money cannot be wasted; it must be managed carefully and judiciously. Avetis Vartanov: “Many people have the impression that it is simply impossible to save savings, so it is better to invest in things: our compatriots often buy new clothes, even when they are not needed, buy equipment, despite the fact that the old one perfectly satisfies existing needs. In my opinion, the root of this habit lies in the fact that for a long time in our country there were no effective and safe tools for working with savings.”

There are many rich people in the world, but they often do not show it while leading their usual lives. They do not have luxury housing or expensive cars, but they have confidence in the future and a sense of financial independence. This is more valuable than immediate material benefits. This is one of the foundations that allows you to form successful money management.

If you learn to keep small amounts under control, you will soon be able to manage large savings.

Remember: You Can't Predict the Future

There is no completely safe investment. Over time, everything changes. And trying to predict where a stock will go next based on evidence that it has been up so far is like guessing which way a coin toss will land, given that the last time it came up was heads. The previous result does not guarantee anything.

But this knowledge should not paralyze you. If you're about to invest your money and want to make a decision based on common sense rather than vague prospects, make a plan. Not a 200-page treatise that you will never have time to even re-read, but a short list of actions that will fit on a small card.

Bodo Schaefer, financial advisor, writer

www.livelib.ru
Bodo Schaefer is called the financial Mozart: he is considered one of the best practitioners in the field of time management and financial management. As a child, Schaefer promised himself to earn his first million by the age of 30.

At the age of 16, he set out to conquer the United States, then moved to Mexico. At the age of 26 he became completely bankrupt. But this did not break him.

Schaefer found a teacher who helped him develop financial literacy and become successful. When he turned 30, he had actually already earned his million and could live on the interest on the accumulated funds. Today, Schaefer is the author of numerous books on finance and time management.

He treats money simply: it is not an end in itself, but a means that helps buy time to achieve freedom, independence and happiness in life.

Tips from Bodo Schäfer

1. Wealth comes not from the money you earn, but from the money you save.
2. There are two ways to become happy: limit your needs, increase your capabilities. A wise person does both.
3. Money stays only with those who are ready for it.
4. We must do, not try. Anyone willing to try is prepared to fail. And in the end, nothing works out for him. Trying is simply justifying your failures in advance, excusing them in advance. There is no attempt. Either you do something or you don't.
5. The more I train, the luckier I get.
6. A person without self-confidence does nothing, he has nothing, and he is nothing.

Warren Buffett, American entrepreneur, investor

kapital.kz
Warren Buffett is considered the greatest investor of all time. His triumphant ascent to the financial Olympus began with 10 thousand dollars and the founding of an investment company in the 60s of the last century.

Today, Buffett is one of the richest people in the world (his net worth is estimated at $77.3 billion) and the largest philanthropist. He is called a seer and oracle from Omaha, the city where he was born.

The main secret to achieving long-term success, according to Buffett, is this: you need to follow certain principles and be patient and thrifty.

Advice from Warren Buffett

1. Buy only what you would be happy to own if the market were to close for ten years.
2. I don't care if it's socks or deals: I like to buy quality products at discounted prices.
3. Constantly putting off looking for a good job and sitting in one that depresses you is like putting off sex until retirement.
4. If you have a choice, it is much more important to say “no” than “yes.”
5. I always knew that I would be rich, I didn’t doubt it for a minute.

Get rid of debt and stay out of it

Debt is a scary thing. Both because they put pressure on us psychologically, and because we are forced to work for debts instead of enjoying life.

Therefore, borrow only in the most extreme cases, apply for loans only after carefully weighing and analyzing your capabilities (a loan is also a debt, only to the bank) and only in special situations (for example, buying an apartment - without a loan you will have to collect about 20 years).

In all other cases, refuse loans and any loans, managing on your own. Do you want a new car? Save up. Are you thinking about upgrading your computer software? Save up. Apartment renovation? Save up. Overseas vacation? Save, save and save again.