How much money do you spend? Can you say an exact amount? If this question makes you think too long, you are a "financial extravagant" who risks his wallet every day and his financial existence. Here are four mistakes we all make:
You Don’t Know How Much Money You Spend Each Month
Most people really don’t know how much life costs them. It has nothing to do with whether you’re a family man or a bachelor or even someone who lives with his parents. Such people are in constant danger. The road to wealth begins with accurate expense calculations. Write down everything: income, habits, unplanned expenses. In general, it is recommended to live like this 90 days and then plan your budget. Do it on paper, not by an application or lists on your computer, so you will be more attuned to your own money.
You Spend More Than You Make
Without knowing how much you make and how much you spend, you are freezing your money. If you calculate everything correctly, you can see if you spend more than you can afford. There is only one solution: to tighten the belt and demonstrate financial discipline. That means spendingless and saving more. Fix your lifestyle because usually unnecessary expenses appear in credit card payments (and credit in general).
You Spend Money Because You "Feel Like It", Not Because You Need To
Although women are always considered to be major spenders, both men and women are terrible spenders. Especially when it comes to clothes. Sometimes people buy clothes just because they like them and then 80% of the time they wear the same clothes. Check how many "purchases" such as this are hanging in your closet. The solution is to choose quality clothes, to maintain a certain style, so that it is easy to combine the items and not to buy another shirt, shoes or pants.
Spending Money Is Being Happy
You need to control emotional spending, money and emotions is a very toxic combination, and you should never mix them. Many people go shopping just because they feel good, maybe even temporarily. But believe it or not, in the long run, the money you save will bring you a lot more satisfaction than if you spend it on feelings. So if you want to spend money, try to do something else - travel, read or see a new series.