How To Save More Without Decreasing The Your Life Quality

By Soko Directory Team / Published April 11, 2024 | 11:20 pm



investor

You have noticed that some people save money, travel, invest, and even save some money to play their favorite casino games, while others live from paycheck to paycheck, although their income level is the same. Let’s find out why this happens and how to cope with this problem.

What Are the Reasons

There can be several reasons why an adult who earns well continues to live from paycheck to paycheck. They have two levels: rational and emotional.

The rational level is about the structure of the idea of money, why you need it, what you can do with it, how it works, etc.

The emotional one is about how we feel when we come into contact with money. Here, situations can be related both to a particular person and to the attitudes of the environment in which he grew up and lives now.

As We Think, so We Live

Most people think of money in terms of ‘earning’ and ‘spending.’ However, if there is no structure or understanding of how to do this, a chaos of debris of ideas, knowledge, and situations forms in the mind with a mass of emotions around it. When there is no structure, the thought doesn’t flow further, doesn’t develop, and gets bogged down in emotions. The person worries about it but is content with what he has.

To get out of this situation, it’s necessary to work with your idea of money, build a structure by studying the topic of money, form new habits, and integrate them into the already-formed idea of finances.

Missing or Insufficient Financial Skills

When a person doesn’t think about and keep track of finances, he doesn’t know how much his lifestyle is costing him, so he just spends everything. Strategically, he lives one day at a time, and it becomes the cause of unpleasant experiences.

Or it happens that accounting is done periodically. A person at the household level knows how much money is needed for utilities, groceries, gasoline, etc. But emotionally, it weighs him down, and he regularly breaks down.

The problem is that our brain likes certainty. Therefore, if a person doesn’t know how much he spends, there is an underlying anxiety that drains energy. As a consequence, he simply doesn’t want to think about the future, much less dream.

However, in the field of finances, there is a so-called forced evolution, when we do nothing, but as a result, the situation is such that we have to keep track of funds to exist normally. It’s unpleasant. Therefore, it’s better to stick to the variant of natural evolution, i.e. before such events occur, make the topic of money clear and transparent, get interested, study, and act.

No Incentive or Motive

A person changes his way of life in two cases: either when he is running away from something or when he is striving for something.

That is, if everything is good, a person thinks that it is not worth the effort. Let’s say that your friends get less, you are doing well against their background. As a result, you don’t care much about the question: Why do I spend everything I earn?

There Were Attempts to Change Something but Without a Plan

This happens when, for example, a person has a decent salary but lacks freedom. Then he is looking for an idea for a business to get out of hiring. And since there is enough money and no experience as an entrepreneur, he doesn’t analyze or plan. He invests in something, knowing that if he is a reliable employee, the others are just as responsible.

As a consequence, he often loses money, and the accumulated frustration makes him stay at his level and no longer develop.

Forming the Right Habits

Budget Habit

Make a personal budget, that is, determine your expenses and income. After that, divide the item with expenses into two parts:

  • Those that arise every month (communication fees, utility bills, and groceries).
  • Variable (large purchases, entertainment, etc.).

Separately, you need to enter the article “savings” and put aside at least small amounts. This will discipline you.

Try to keep records in an app. Collecting receipts and fiddling with them is boring, and in the app, you see a nice interface with graphs, which motivates you to continue.

The Habit of Planning Large Purchases in Advance

Dream and think about the future. Divide your dreams and desires along a gradient: how you want to live in a year, in 5 years, or in 15 years, and how you see yourself in maturity. It’s sobering and helps you prioritize.

The Habit of Making the Right Choices

Impulsivity in shopping is a powerful energy that can be difficult to deal with. A simple tip: “sleep over” the urge to buy something right away. And then in the morning, ask yourself: is it my thing or not? Learn to listen to yourself, hear, and obey.

Getting in the Habit of Being Aware

In financial matters, it’s important to move forward. Follow the information agenda and study how financial instruments work. This will help increase your income.

Read Also: Unlocking Your Financial Future: Why Being Money-Smart Is Your Ultimate Power Move




About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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