12 Financial management tips to help you live happier

We always tend to work hard to make a lot of money. However, if you do not know how to save and spend reasonably, you will most likely have to be in constant deprivation. Here are effective financial management tips that you can refer to.

Often, our financial trouble is caused not by how much money we have, but by how we use it. We at Break are constantly searching for new solutions to make our life even more comfortable. So, now we present you with these 12 rules on saving money. Read and use them! 1. Consider the cost of use

Sometimes, we get in trouble when we’re trying to save money. Of course, there are basic things that we use every day and we should try to save money on them. But when we buy cheap things that are poor quality, we often end up buying these things more often.

Of course, we should make our decisions based on how much money we have, but we should not neglect the fact that the real cost of a product is not its price but how much time you can use it. To be more specific, here is a formula: real cost of a product = the price / the number of times you use it. And you should use this formula every time you want to make an important purchase. 2. Set a limit for everyday expenses.

Planning your expenses is one of the most important rules for managing your budget. After you plan for big purchases, try to limit the amount of money you spend every day. This will allow you to stop wasting money and avoid the urge to go to the store just to buy something tasty.

So, think carefully about the amount you can spend without prior planning (drink a coffee, pay for an additional ride in a taxi, and so on) and try not to spend more. 3. Satisfy your needs, not your wants.

In general, people don’t have that many needs: water, food, shelter, clothing, safety, good relationships with other people, and free will. By satisfying a need, we solve a problem, and in the end, this is what makes us satisfied.

When we satisfy the wants we have, we are often impulsive and we end up with useless junk which not only uses up our financial reserves, but also disappoints us. So, every time you want to buy something, ask yourself this question: do you really need this thing and what does it solve? 4. Exchange things.

Lately, it has become pretty popular to exchange things. In general, we all have good things that we don’t need and we rarely use them. Why don’t you use them 100%? Even a cottage you don’t use can be useful: there are a lot of people who want to spend some time out of town.

You can also exchange clothes, toys, and books. You can do it with friends or with people you don’t know on the internet. This will now only allow you to save a lot of money, but will also contribute to the eco-friendly movement — you will give things a second life. 5. Don’t buy a new car.

Financial expert Dave Ramsey writes that only 39% of rich people choose new luxury cars. The biggest part of the population that has the money drives either a Hyundai, a Toyota, or a Honda and often buys used cars, instead of new ones. Buying a used car is actually profitable: you spend less money and still drive a good car.

Watch: 8 Financial Rules That Can Help You Make a Fortune If You Use Them Every Day

Maybe you’re interested in: The 9 simplest exercises that celebrities don’t have much time often apply 6. Pay more than your minimum loan payment.

Most people prefer paying their minimum loan payment. And at first, it may seem like a reasonable decision especially if you don’t have a lot of extra money. But if you don’t have a lot of the loan left to pay, it is still more profitable to pay it off in advance. Why? Because the interest accrues every day. The smaller your debt, the less the interest you have to pay. 7. Optimize the biggest expenses.

If you track your expenses, you know what needs optimization. So, you may think that eating out doesn’t cost much. But if you track it, you’ll see that it’s the biggest expense you have. In this case, you’ll be able to cut down on it. This is not only a good way to find a hole in your finances but also a reason to optimize. For example, we could be sure that we eat healthy food, but at the same time, we may not even notice that we spend a lot of money on coffee. Or, it may seem that we never buy any useless things and in fact, we go to the mall every weekend to buy some new piece of clothing. 8. Share your expenses.

Sharing expenses with your friends can help you save a lot of money. For example, you can drive to supermarkets with your relatives, friends, or people you know. There are discount offers that may be profitable for everyone. And you can also order things from online shops together and split the cost of shipping. 9. Deal with stereotypes.

There are very few people who don’t want to earn a lot of money and who want to live with as few things as possible. But sometimes, people try really hard and do everything they can to achieve success, but they still don’t get the results they’re looking for. And sometimes, our own psychological stereotypes are the reasons for why we are unsuccessful. For example, if your parents used to say that all rich people steal and lie to make their money and other things like that, those words will have an influence on how you deal with money. People who don’t believe that they can be successful rarely are and they spend all the money they earn in the least optimal way possible. 10. Reconsider your loan obligations.

Modern banks offer a lot of options to improve your loan situation. Many people either ignore these options or don’t know about them. There are 2 main ways to improve your loan situation: refinancing (to a loan with lower interest) or restructuring (when your current loan terms are improved).

Remember that even the smallest changes in your loan obligations can turn out to have a very big influence on how much money you’ll save. 11. Choose someone who is responsible for the family budget.

When there is no one person who is responsible for the budget in a family, a lot of money is wasted. But if one of the spouses deals with money better than the other, maybe they should discuss it and assign roles in this matter. This will allow them to optimize their costs and avoid a lot of conflicts in the future. 12. Calculate the profitability of your day.

Maybe you’re interested in: 11 exercises for the best treatment of sciatica quickly Every single day of our lives has an impact on whether we waste or increase our financial power. Because small moments can contribute to and build our financial future. In the beginning, calculate how much money you earn per day and then — how much money you spend on transportation, food, purchases, and other things. The normal range is to have your income be 30% more than your daily expenses.

If the number is less than 30%, it is time to think about ways to increase your income or decrease your expenses. Maybe, even both.

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