Many people argue that money is not the main thing in our life. Yes, it is possible, but they become so when they are not.
What does money give us? Money gives a sense of security and security, a sense of self-importance and independence. The confidence that, under different circumstances, our needs will be met, our needs met, and our problems solved.
What does money deprive us of? Lack of money causes anxiety, fear, panic, a state of uncertainty and constant stress.
How do you feel when you run out of money? Or hasn't this happened to you? Then you may know how to make sure that the money never runs out.
But judging by a number of factors, such as a decline in living standards, a constant lack of money, debts to friends and acquaintances, an increase in the population's debt burden, the rapid development of the microcredit market "to paycheck", the growth of public debt for public services - many people are constantly faced with this problem.
Why is the money running out?
There are 3 main reasons.
Reason 1. We earn little and do nothing to increase income.
The first reason is trivial, but obvious. Most often, the lack of money is a consequence of low income. We earn too little.
Most people believe that many of their day-to-day problems could be solved if they had enough money.
And we just need to realize that we are not earning enough money to cover our real needs or satisfy our desires, and start making real efforts to change the situation.
This is the right moment to start thinking about a strategy for CREATING and PROMOTING true value. This is the only correct way. Only he is able to provide you with sustainable income growth.
After all, what is money? Money is simply a medium for the exchange of value. Money is what you get in exchange for value created and delivered to people. If you can manage to increase the amount of value you create and communicate it to more people, your bottom line will increase as well.
Instead of getting hung up on making money, spend your time and energy creating and promoting real value. Find a way to give people what they want or need.
But the problem is not only that you have little money. The problem is how you manage them.
But if you think that with an increase in income you will be able to solve all your problems, satisfy all your needs and desires, you are mistaken.
Reason 2. We spend more than necessary
This, in turn, happens for two reasons.
Excessive consumerism.
Since the philosopher Democritus, 2500 years ago, remarked “The greed for money, if it is insatiable, is much more painful than need, because the more desires grow, the more needs they generate” - nothing has changed.
We always want more, we always want what we don’t have yet. No matter how we live, whatever our income, we constantly lack money.
“If a modern man dared to describe in words his ideas of what paradise looks like, he would depict the world's largest supermarket .. He would wander in this paradise of things and conveniences with his mouth open - if only there you could always buy more and more newer things and an increasing number of them, and preferably, his neighbors had somewhat less opportunities than he did"(Erich Fromm)
It is high time to introduce the definition “Excessive consumption is harmful to your health or“ excessive consumption threatens your future ”. And place those words on price tags and product labels to stop addicted shoppers.
But life is not a list of acquisitions. And we don't need to buy anything else. We just need to get rid of all that is superfluous. Real freedom is in modest desires.
We do not control our financial flows
Have you ever wondered why all rich people have the right money habits? Because they are rich? No, they became rich thanks to these habits.
Therefore, in order to achieve your financial goals, you need to not only strive to increase income, but learn to control your financial flows, calculate income and expenses, plan your budget, and stick to it.
If you do not keep track of your income and expenses, it may seem to you that all your expenses and expenses are quite correct and reasonable. But if you start counting your money, you will certainly find that you have a lot of unnecessary spending that can be completely eliminated.
Unfortunately, most people choose not to keep track of their finances. But why?
It is considered difficult and time-consuming. But those who keep records of their money will confirm that it takes no more than 15 minutes of time per day. You can continue to be lazy if you really want to. But then don't complain that life is getting harder every day.
They think that budgeting and financial planning is associated with stinginess and limitations. On the contrary, many successful people are convinced from their own experience that it is planning and control of their spending that makes it possible to get new opportunities and the very desired financial freedom.
Laziness and lack of discipline. It is easier not to do than to do - this is a natural desire of any person. But in this you can find an opportunity for self-organization and discipline, for pumping willpower. Double benefit - both money is saved, and character is strengthened for other areas of life.
They are afraid to see the real picture of their financial condition. Sometimes the recorded expenses can be shocking - a person sees how much money is spent on unnecessary expenses, on occasional emotional purchases, petty expenses, and bad habits. And then, instead of deciding to change his lifestyle, and in order to get rid of the pangs of conscience, he decides not to keep financial records anymore.
Reason 3. We have no savings and savings.
Saving is a must-have financial skill that helps keep yourself and your family safe from unforeseen situations.
Why are savings needed? The money you save regularly is not only a guarantee of financial stability, but also peace of mind. In case of unforeseen circumstances, you use your own reserves without resorting to the unpleasant procedure of loans and credits. Which, in turn, lead to even greater problems.
And as the coronavirus crisis has convincingly shown, our savings are the most valuable part of our financial life. At a time when many have lost their source of income, or incomes have plummeted, it was savings that became a lifeline for many people.
But many people do not even think about it, they live only for today. Others want to but cannot because of lack of money or lack of discipline and willpower.
“We know we need to save. We know that we will do it next year, but today we will go and spend everything, ”said behavioral finance researcher Shlomo Benartzi.
Self-confidence and carelessness do not allow us to foresee all the options for the development of events.
Yes, you can live as if tomorrow does not exist. But he comes and makes a very convincing statement.
Therefore, reasonable people live now and, at the same time, do not forget to save and save some part of their money for their financial security.
We do not like to be deceived, but willingly deceive ourselves. We know it is high time to get our finances in order. Every time when there is a critical shortage of money, we tell ourselves - we need to do something, we need to change something. But we do nothing. And without action, there is no change. As they say - No honey, no money!
If a person does not take his finances seriously, does not manage his cash flows, does not create a financial reserve, money problems will always haunt him. Regardless of income level.
Money is a way to change the status quo and current life circumstances. By changing your attitude towards money, you can change your life!