Everyone
wants to have money, a lot of money. However, not everyone has it. People think
that if our salary is higher our life will be happier. That’s not true. Often
it’s not a low salary but bad financial management makes us poor. Many people
don’t think about what they buying and sale time and discounts are times
when the brain turns off. Finally they buy products they don’t need, at a price
which sometimes is higher than before the discount. Afterwards we have no money
for things we want and we have a heap of trash.
The first
step to save money is to see where our incomes disappear. With that problem
will help us some applications:
1.
Microsoft Excel ( I think everyone knows it, but I guess only few people are
able to take its full capabilities )
2.
Microsoft Money Plus Sunset Deluxe ( Long name, but in short it’s a electronic
wallet. We can archive our incomes and expenses )
On the
Internet you can find many more similar applications but these two are one of
the most popular ones.
Afterwards
when we see a money leak, we have a possibility to limit this situation. The
first step is sufficient for the most people. For others
who can save and earn more a bank deposit can help. We can get there some extra
money Simple, safe and profitable. If you have more courage you can play the
stock market. It’s a harder way and you need a lot of knowledge about
how stock market works. However, if you take the risk, you can gain a lot
because stock markets offer the biggest risk and the biggest income.
In
reference to the first paragraph, I’m
not saying that discounts and sales are bad and dangerous. It’s a good way to
buy something cheaper but we should use them using brains.
Questions:
1. Do you
try to save money or rather you are a wasteful type?
2. What other
ways of saving money do you know?
Source:
1. http://www.moneymanagement.org/Financial-Education/Loan-Management.aspx
I am a type of a person who is wasteful :D I try saving money but for me it is hard because there are a lot of expenses for example school or work relative.
ReplyDeleteI know that you can put your money to a bank account or just try your luck to invest money at a stock market.
Some people try saving their money by puttig them into a piggy bank :D
Sales time is probably the most dangerous time for our budgets. It encourages you to think ‘maybe i will need this in future, now it has a good price’. Saving at least for me is something very important. Some time ago I had a lot of problems with control of my expenses. Still time to time I let myself to buy coffee in Starbucks knowing that price it definitely to high. In the same time when I am in a shop keeping thing that I want to buy in my hand I am asking myself ‘is this something that i really need?’.
ReplyDeleteIt is good to differentiate needs from whims. I know that we have a lot of time to pension but probably we should start saving money right now. However a lot of saving programs offered by financial advisors are very adverse. We have to find the best possibility to keep money working, because of inflation value is going down.
@Karolina, I admit that sales time is very, very dangerous but if we try to stop and wait for product we want to it can be very profitable decision.
ReplyDelete@Katarzyna. Yes people try to put coins into piggy bank and say "saving money" but in fact it's bad because it's not profitable
Well, i tend to think of myself as a small piggy bank. Even though my saving habit seems not to be working to well.... somehow.... By the end of the month there next to nothing in there :)
ReplyDelete1. Do you try to save money or rather you are a wasteful type?
I prefer not to waste $$. I'm an aware buyer, but....
2. What other ways of saving money do you know?
When you want to buy something above 200zł search online. Most of the times you can find in couple of $$ off.
I'm a really thrifty person. I've been taught frugality since childhood and it's natural for me. I don't spend much, but I don't forbid myself little pleasures from time to time.
ReplyDeleteI'd say a really useful tool for money-saving is a smartphone. There are several applications where we can input our expenses in different categories, our salary and savings. The application that I personally use is called Monefy, as it's both useful and well-designed (and free :)). It gives you an overview of the things you spend too much on, and helps you plan further expenses. I'd say it's a more convenient solution than Excel or other PC-based software, as we always have our smartphones with us, and we can easily use apps like Monefy wherever we are.
My friend who studies psychology says it's scientifically proven that people who write down their savings and expenses tend to save more money. I think it's worth a try ;)
@Patrycja I agree with you, and in fact I forgot to write about smarphone using. People who see how their money dissapear often try to save money. Similar relation is while we using credit card. We pay but we don't know how much money are left on out account and buy more.
ReplyDeleteAbility to manage money in my opinion is one of the most important skill in our times. Unfortunately at school there is not any subject talking about managing money and we have to learn all by ourselves. Probably in future this skill will be more important, because everyone will have to save money to secure their future in case of collapse public pension system called ZUS.
ReplyDeleteI'm rather type of money saver I only spent money only on useful things for me and I rather try to avoid wasting money for useless things.
Here" you can read about how you can save money. I also have my own personal method of saving money when I want to buy something like for example a new laptop or something I try to hold on with making decision for 1 month and after that If I still want to buy it I just buy it, but usually I decide to not waste money on it.
If someone want to learn more about managing I would recommend to read George S. Clason book " The Richest Man in Babylon " and also Robert Kiyosaki books "Rich dad poor dad" , " Cashflow Quadrant".
Adam, congratulations on your article. It is short but very interesting - the subject is really close to me. As I started working and earning money I look closely at my expenses and sometimes I am impressed how easy it is to spend !
ReplyDeletePersonally, I am a money-saving type. But when I decide to buy something I usually make a really "solid" purchase: I buy a good mobile phone that would last more than one season, a computer that is efficient enough to last for three or four years and so on.
The saying goes: "you buy cheap you buy twice" - turned out to be true in many cases for me in the past...
Saving money is very hard. Most people do not have enough money to be able to save anything. Nowadays, deposits in banks have very little interest rate. Deposits are the most popular, but also the most profitable, but safe. If you have a sufficient amount of money we can risk and invest in stock exchange or in currencies. I personally do not I save because I spend what I earn on a regular basis, I hope that in the future this will change.
ReplyDeleteI ride on motorcycle and I spend part of my salary on fuel or parts to my motorbike which I must buy every year. I dont think having a lot of money on your bank account makes you happier. I think when you spend your money for things that you like makes people really happy :)
ReplyDeleteSaving money is difficult for people who is wasteful. Unfortunately, I'm the type that person. Often I spend money on things that are unnecessary to me. Of course I try to use application like Microsoft Money Plus Sunset Deluxe, but sometimes I left out some expense, and it did not make sense.
ReplyDeleteIf you have a sufficient amount of money you can invest in real estate. It is safe, but blocks the fluency of money. Currently, it is tempting to invest in currency.
I can't say that i am a wasteful type, i am trying to be reasonable with my money and set some limits each month so i can save for near future. I don't use any external programs or sit whole night calculating on paper my savings. I just changed my personal life to complete minimalism and buy only things i need and also can be useful for me. Even if i buy something cheap for myself, it feels like i didn't have to do it. But if i buy presents or even borrow money, i don't think it's a loss.
ReplyDeleteMy way of saving money is to kip it in my bank account, because I do not like to pay with my debit card. Of course it is easy but when you look up your account status, you instantly notice that you have got less money than a weak before. I think that the easiest way of wasting money is by buying small things. They do not cost a lot, but after some time those small transactions can grow much higher than you would expected.
ReplyDeleteUnfortunately up to know I'am not a person that saves money. I spend money when I need something at a given time. That's also why I don't know and don't have any tips in saving money.
ReplyDelete@Michał Maciejewski
ReplyDeleteI agree that money on bank account don't make you happier, and admit that I forgot to mentioned it. I waste money for things and services which I like and which make me happy. However I mean money which remain after 'shopping'. That money we can invest and take profits.
It seems to me that waiting for discounts and good deals is a waste of time, because during this time of waiting we could earn much more instead. Of course, I am trying to save money but it does not mean that I will buy a thing which I liked for any price it would cost. Lately, mBank introduced a similar function to the electronic portfolio and thanks to this function we can monitor our expenditures. Sometimes it is very helpful in planning our family budget.
ReplyDeleteI respect people who steadily can save money. It requires a tremendous thing, cause everyday life is expensive. A great example of that person is my friend's grandma. All of her life she was modest agriculturalist. In effect, she save 200 thousand zlotys, which was a gift for grandchildren :)
ReplyDeleteFrom my personal experience, it is easier to save some money, if we're not addicted. All of my friends are chain smokers. When they buy another package, I'm 14 zl one step forward.