You have money? Money controls you or you control your money , who controls who? The term personal finance still scares a lot of people, but it means nothing less than controlling the expenses and revenues of your personal life, it is in this item that you will determine whether you will control your money or if it will control you.
When it comes to budget control, many people think that in order to understand and practice the subject, one needs a diploma, a higher education course or an accountant because they are mistaken. My earliest personal finance concepts I learned even before attending school, with my mother, who despite not even having a high school diploma, is a master at home economics. The great secrets that have been revealed to me and which I now pass on to you are very simple and do not require any magic formula:
1 -) Never spend more than you earn :
At this moment you must be wondering, with spending little? I have so many accounts, and everything is so expensive! So we got into the second board.
2 -) I really need this :
To spend less we need to practice and perform a great exercise when buying something, regardless of the amount to be spent. Ask yourself do you really need this? We do not always buy just what we need, and often buy because it’s cheap and worth it. But at this point we need to consider whether it’s worth having to pay by credit card, for a new shoe, a video game, new wheels for the car, etc …
3-) Value your money :
Value every penny you earn and the moment you need to buy something, research well. Prices vary a lot from store to store, do not be ashamed, search, rate, haggle. After all the money you are using is yours, earned through your work and effort and if you do not value it, no one will.
4 -) Write down all expenses :
keep note of everything you buy and for what you do not have note put in a notebook, this is key so that you at the end of the month look and review everything you have spent, so you know where you invested your money. This will help you to see if there was unnecessary expense, so that you take more care next time.
5 -) Credit card :
It is useful, but in the right measure: having a credit card does not mean that you should spend the limit every month and also that you need to get into debt with it. Do not be afraid of the card, just know that it can be villain or good boy depending on the use you make of it. The conscious use of credit and your money is the best way out, so plan the expenses, put in the card only what is really needed and never forget that even buying on the card will have to pay later.
You see, controlling your money against consumerism is the hard part, and curbing the urge to buy is not being miserable, but being aware of what you are getting. Here are some basic tips that can change your financial life if you choose to understand them, but just thinking about them will not change your bank account, you need to put it into practice every day, every day until it becomes habit. Show your money that you have control over it, and get to work!