Today, poverty remains one of those factors that hinder the development of human civilization. In the European Union alone, at least 20 percent of citizens are at risk of poverty, and the latest CFPB research has shown that at least 1/3 of Americans under 49 have debt that exceeds their savings or the value of their real estate. A difficult economic situation increasingly leads to a situation where a person begins to live in debt. As a result, his needs are constantly increasing, and the possibilities can no longer cover them without external infusions, which leads to the need to use borrowed funds. How to control your purchases and learn how to handle money correctly? To do this, it is enough to follow a few simple rules.
Credit Cards
Paying for purchases in cash leads to the fact that a person is holding physical money in his hands, with which, on a psychological level, it is much more difficult to part than with money on a credit card. The advantage of plastic cards is that they allow you to purchase goods in a comfortable environment when you do not need to leave the apartment or communicate with sellers. As a result, a person who is not used to financial discipline tends to make rash purchases.
If you decide to make a large purchase, then try to pay in cash, or have a debit card at hand for such cases. Perhaps you decide to change your mind, once again paying attention to how much you have to spend.
Shopping Therapy
When a person’s mood drops, he begins to look for ways that will help him feel cheerful again. For this purpose, shopping is excellent, helping to forget about problems by switching attention to current needs – buying various things for yourself or home. Statistics show that a person who is frustrated feelings is inclined to spend huge sums on purchases without purchasing expensive goods. Instead, they make a large number of small purchases that leave us in no doubt about our choices, while at the same time helping to maintain confidence that we are in control.
How to fix the situation? If a person has a loss of strength and mood, then the solution will be:
- stroll;
- playing sports;
- cooking your favorite dessert.
Having your favorite entertainment will also be a big plus. Today, play online casinos in India not only on a PC or laptop but also using a mobile phone. For this reason, the bettor can at any time spend a few minutes on his favorite hobby, as well as earn a substantial amount, which will also have a positive effect on the mood. The catalog of slots is extensive enough for every bettor to be able to find suitable entertainment for themselves.
Better Alternative
Before shopping, always think about what the alternative is? By purchasing a certain product, we deprive ourselves of the opportunity to use another product or service, which may be more important in terms of benefit at the moment. So buying a smartphone will become less logical if you think about having to pay the loan at the end of the month, and updating your wardrobe can wait if you instead pay for online courses, which at the moment look like a more urgent task.
Separate Accounts
When planning a budget, we try to divide it into several categories of expenses by and purpose:
- Payment of utility services;
- payment for parking;
- buying food;
- rent.
Unexpected income, such as receiving a birthday present, leads to the fact that these funds are used for spontaneous shopping or entertainment. A more rational solution would be to use them to create your savings, which will help you pay the next installment on the loan, if necessary. There is another option for how to dispose of such funds – they should be included in the amount of basic income. In this case, the likelihood of rational use of money increases.
Special Cases
Every person has to regularly deal with events that occur spontaneously, for example, birthdays or buying New Year’s gifts. Even the decision to go to the cinema with a loud company can put additional strain on your monthly budget. Since we subtract these funds from the total income, at first glance, the amount may seem small, which may serve as an excuse for such a purchase. At the same time, incidental expenses are added up, and the result is an unpredictable amount. To reduce the risk of such a development of the situation, a separate expense item should be allocated in the form of a gift account, money to which can be deposited every month. As a result, there will always be an idea of what amount is available for purchases and how much the chosen gift corresponds to a particular occasion.
