Lots of people consider that it is useless to save money, especially if you earn a little. Although, this is the case that it’s important.
1. First pay yourself
First you need to satisfy your basic needs, and then you can save or spend the remaining amounts for achieving your financial goals, for example, payment of debts. In this way there definitely will not be a chance for you to spend money on useless things.
If you start putting small amounts away from each salary, you will not even feel that you are limiting yourself in something.
For example, you can transfer 300 rubles to a separate account on Tuesdays and Thursdays every week. It is not much, but for the year you will have 31,200 rubles, and this is already quite good. If you transfer one more 1,000 rubles each month to this account, you will get 12,000. Such expenses will not be very noticeable during a month, nevertheless, you will have 43,200 rubles at the end of the year.
Of course, this is similar to another common cliché, which does not help if you are already down. However, this is the case this rule is especially important.
2. Set up your own reserve fund
Being faced with some emergency situation without a reserve funds, we often make mistakes. Psychologists and economists have found that we became rougher and more impulsive in such a state, we have reduced cognitive abilities. We can not objectively assess the situation from the outside. To cope with this problem, we have to take a microloan or pay by credit card.
There should be a reserve fund for such situations; otherwise you can easily be bogged down in debt. Yes, it seems to be complicated, especially if you earn a little, but you need to have such fund. Start saving at least small sums to feel more confident.
3. Cleverly pay off the loans
Another very important lesson is if the bank has approved your loan, there’s no assurance that you will easily pay off this loan. After all, the creditors earn a percentage
The advantage of the bank is that you give small amounts every month and spend more on paying a percentage. If you want to pay off a loan quickly, make sure that this money does not go for paying off a percentage.
Protect your interests and do not forget that creditors are not on your side.
Despite the popular wisdom, which suggests that remembering our past successes or failures can help us make better decisions in the present, the researchers found that getting stuck on past failures, we have a negative effect on our habits in the present. Constant recalling our failures can lead to repeating them again and again.
When you have learned from your mistake a useful lesson, stop practicing self-flagellation and move on, because this may well depend on your financial well-being in the future.