Definition of poverty starts with thinking
Often ask themselves the question: where does all my money go because? Why is my account empty at the end of the month? What are these invisible holes, where our money in every time? We may have some answers to these important questions. We list for you some typical habits, which lead many people to money problems even at a well-run budget!
Everything begins in our minds. Although there are areas in the world where poverty is determined by objective criteria independent of the usual people. In wealthy societies, but the definition of poverty begins already in the head.
We Europeans know no poverty
Poverty a very elastic term
More spending than the growth of income
Some people start to spend immediately excessively at an increase of their income. You should try to keep spending even when wage increases consistently. So, you have the opportunity to save money.
Not thinking about the future?
In the past, as well as to be focused on the future are no good options. On the other hand can look forward something, to provide spending and to prepare for it. You have more spending, not in the winter? If you get in the summer times nearly with the budget, what is left for this season? Put something to the page!
Some believe they are poor, because they have no savings
It is never too early to save
Some people feel too young to save. Are you also? Real? Why exactly? Saving can be done in a smaller and larger size. If you start saving now, it can be that you have money for a spontaneous vacation next summer. Isn’t it great that sound? You would be in a month for this step very grateful.
others are happy and frugal
Strike a balance
One annoying thing that rapidly discard many people is to list everything, where it has spent money. There are also other ways to strike a balance. Keep out E.g. the “larger” issues. Then you know exactly how much money you’re wasting for “Odds and ends”.
If some money is left, it can be saved or donated
No or inadequate budget?
You need a realistic and well-planned budget. The planning for this should be done every month. Make it and stick to! This is the basis for financial stability. If you keep a realistic budget in mind, you would spend for unnecessary things money less frequently.
A good financial planning controls and stabilizes your spending
Know exactly what you want and what you need,
You need to keep these three categories in terms of: things that you need. Things that are good to have; Things that constitute unnecessary spending. Share all items in these categories. So bring the priorities in order.
and puts an end to the barren bank account
As we all know from experience, expenditure from the second and third category will bring much pleasure. How should you going to it but, to be lost. The answer is in the higher motivation. Set the overarching goals and keep them in mind. Then you would remember more easily, why it is OK to abandon even the small pleasures.
Wealth and poverty are not financial conditions
Don’t ignore your debt
Make paying off the debt a high priority! The latter shall ensure that every month not 0, but minus didn’t start?
Frugality must be learned
You need not all the new equipment and accessories to which exist on the market
Yes, the new electronic devices represent a great temptation for all of us. They are exciting, interesting… They are like toys for the children. But rather, shopping should be adapted to your real value. Spend less on such products. So you have more resources, more enjoyable in the real world instead of having in the virtual world.
For many people, the health is the greatest wealth