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Save money, save money or spend more than planned? This choice confronts us every day – and everyone must make a decision. Relationships with money is a complex issue that significantly affects other areas of life.
PhD in Philosophy, Master of Neuro-Linguistic Programming, Gestalt Therapist
With savings, everything is quite simple – you choose cheaper goods and services so that your income is enough for these expenses. But if you want to spend more, then you will have to increase your income or look towards alternative sources of income.
To come to this, you need to restructure your thinking and reconsider your attitude to spending.
When is saving pointless?
You don’t have to wait until it gets worse to buy expensive drugs. Often we try to save money and “get sick” at home without going to the doctor. And when the situation worsens, it comes to the hospital, and you have to spend much more. Not to mention how neglected diseases affect health.
It is also worth choosing quality food. Try to buy unrefined and unprocessed foods so that they retain their beneficial properties. Yes, such products tend to be more expensive, but the health benefits will be much greater.
Remember – they are greeted by clothes. And before your opponents consider your unique inner world, they will have time to evaluate how you present yourself through your appearance. This is especially true when you are applying for a job or getting to know a new company.
Identify wardrobe items that should always be of high quality and expensive. For example, accessories, a business suit or shoes.
The place where you rest, sleep and stay for a significant part of your time should be comfortable and safe. You should not experience negative emotions when you come to a dirty apartment with bare walls or make your way off-road along an unlit street.
Strive for comfort and pleasant emotions from staying in your home or rented apartment. Not the last role in this is played by cleanliness, which means timely cleaning. What will happen if you neglect it for a long time, read the material at the link.
What happens if you don’t clean your house for a long time?
Invest in yourself. Choose programs and mentors who can provide you with unique knowledge, develop and scale your experience. If you are really motivated and take your training seriously, it will definitely pay off.
Remember, the body and mind rest only in a state of calmness, peace and lightness. Keep this in mind when choosing the type of holiday. And do not forget to supplement it with bright emotions and impressions for a reboot.
What does a healthy relationship with money look like?
Associate Professor, Department of Social Psychology, Moscow Institute of Psychoanalysis
Many are in captivity of the so-called “dichotomous consciousness”, highlighting only the “black” and “white” sides of a phenomenon. In financial matters, this is often expressed in the thought that it is better to be a miser than a spender. Therefore, on an intuitive level, we teach children to save money for desired purchases, not to spend them on nonsense.
It’s hard to argue with this, but financial literacy is a much more complex phenomenon than many people think.
From a psychological point of view, money is a resource that we exchange for achieving goals. Therefore, the development of financial literacy should begin with an understanding of what we really want. In psychology, this is called intelligence.
Many people get in the way of achieving their goals with the most ordinary things. More about this in the article at the link.
4 habitual things that prevent us from achieving our goals
Not everyone can boast of a meaningful approach to life. In this case, a professional psychologist will help to realize the goals and develop an implementable plan to achieve them. The next step is to prioritize and set your own boundaries. Answer yourself a few questions. What are you willing to sacrifice to achieve your goal? What moral dilemmas will you face along the way? For example, are you ready to deceive people for the sake of high earnings?
When priorities are set, it is worth thinking about financial behavior. In economic psychology, there are two main forms: saving and investing. The first is related to savings, the ability to set aside part of the funds without making unnecessary purchases. The second is the multiplication of capital, the ability to receive income from invested funds. A financially literate person usually combines these strategies.
The question of how to save and spend is very individual and depends on your personal goals. But you can formulate some universal tips for proper budget planning.
- Keep a spreadsheet of income and expenses.
- Divide expenses into four categories: a) urgent and necessary; b) not urgent and necessary; c) urgent and unnecessary; d) not urgent and unnecessary.
- Create “piggy banks” and transfer part of any income into them. “Piggy banks” can be targeted (for example, “for vacation”, “for repairs”) and stabilization (for example, half of the salary for unforeseen expenses or an “airbag” of 6-12 monthly income in case of dismissal).
- Properly use financial instruments: loans, the stock market, etc. Remember that high profitability is directly related to the risk of losing funds.