A penny a ruble, is not it? And so you need to carefully consider every penny to control your financial future. So?
No not like this! You were once deceived by people close to the point of view of finance, and you did not put their words into question. Below is a series of facts that your advisers «forgot» to tell you.
Myth 1: Accounting for finance requires total control over expenses, up to a penny. In fact, your financial condition is affected by excessive spending, which is measured far from copecks. You are unlikely to feel worse from an unaccounted hundred rubles, but if you can not catch yourself by the hand, when you make a purchase that exceeds your financial capacity, this is the source of your troubles.
Myth 2: If you know how much you spend on beer and cigarettes, you will be corrected. This misconception in the world of personal finance is classic: the standard behavior of a person who has learned about his excessive spending is to try to buy similar products, but cheaper ones. Fundamental reasons for such knowledge are not solved. Therefore, this problem can not be solved only at the level of financial management.
Myth 3: Reports on spending categories will help you optimize costs. This is partly true (for example, you can call several insurance companies before buying insurance on the car), but again — the fundamental problem is that you will look at the pictures, not knowing what to do with them. You can resort to extreme measures such as replacing potatoes with meat on rice and chicken, but to maintain the existing standard of living, you would have to think about eradicating spontaneous waste, and only then to optimize the necessary spending. Of course, without forgetting the search for additional sources of income.
Myth 4: If you keep track of spending, there will always be money in your pocket. The account of spending by definition is a retroactive action, i.e. You first make a mistake, and then a month later you will find out about it. In fact, accounting for expenditure is just as useful as autopsy: no doubt, this gives a lot of information, but efforts should have been spent on diagnosing the disease. Financial planning and budgeting systems help you look into the future and see with your own eyes your financial situation in a month or a year.
Myth 5: Accounting for money generates useful financial habits. This is partly true (it is known that a person under observation, even his own, behaves more rationally than without observation or self-control). Nevertheless, not all people normally treat observation even for themselves. Moreover, it is also known that self-control often leads to a feeling of inferiority and / or guilt. That is why a much more positive way to adjust behavior is the recommendations given by the financial planning system:
- Determine your budget (personal or family — it does not matter)
- The budget should be worked out for a tangible period (my favorite term is a week)
- Create yourself a Reserve Fund, where you will save 10% or as much as you can
Myth 6: If you consider spending, you will never miss a payment. You will be surprised, but the accounting of spending does not help you with tracking the dates of the forthcoming payment for a variety of services, whether it is a rent or the next repayment on a loan. And financial planning systems can help you with this.
Myth 7: All money has an equal value. Traditional systems of accounting for money do not allow you to determine how much money lies in your bedside table with dead weight and does not participate in spending. Financial planning systems provide recommendations on the distribution of cash in such a way as to maximize the return on each available ruble.
Myth 8: The longer you look at the data, the clearer they will become. Adherents of this thought happily spend tens of minutes a day, spending spending and looking at the graphs. Users of the same financial planning systems spend a maximum of one minute per day to achieve a positive result. If there is no difference — why spend more time?
And finally: if you have more or less stable income, do not waste time on total accounting and control: use the proven means — the financial planning and budget system «4 Envelope» — and you will be lucky if you invest hardly one minute a day.