And, as we see that we have a certain amount accumulated in our savings we immediately spend it, it's like an impulse there that sees that when there are more than 1000 euros saved in the account it invents up the need. (My car doesn't work so well, my TV screen is an old one, I need a last generation smartphone ... etc)
But if an unexpected event comes, as having to pay a lot of taxes we never expected, or a sudden need we had not anticipated, we find ourselves in financial danger.
If you've ever suffered financial turmoil these are those difficult situations that comes once in life to most people.
When this happens is when we pay attention to expenses and use the credit card very carefully, create spreadsheets to emulate an accounting program and follow up every cent and cut all that is unnecessary, such as cable TV and the rates of mobile phones. And reduce cigarettes, the cinema, going out to restaurants and gambling.
But mostly we never ever want to go through there ... because we’ve been force to become frugal, even too frugal!
We can use this painful experience and learn the lessons necessary to not happen again, starting new habits and adopting new schemes that will change our attitude toward money.
Paying yourself first
One of the simplest techniques to adopt good habits is to pay yourself first, so you get used to save before spending, which is great. You can start an automatic savings plan that is scheduled at the beginning of the month before paying your bills.
It's best to put it in a separate account a different one from your regular income and expenses .. forget you have it there .. and let interests work for you.
You know what? When you save money the bank borrows money from you who will pay you back with interest (up to 3% - 4.5%), when you borrow money from the bank it is you who pays the interest (from 4%, 5%, 6%, 7% and on!).
It is better that the bank owes money to you!
What do you think? Have you ever been in a financial storm? What did you learn from it?
2 comments:
I commend this study to nonprofit financial managers and board members as it provides good finances information that may help nonprofits make "different decisions from the ones they might make in the absence of particular pieces of information."12
Hi Elizabeth,
Thanks for your comment and link to your study. I think that it is always better to have a fund for emergencies rather than ask for paydays loans, debts and loans are the road to financial poverty, just the opposite to saving money that opens the way for financial freedom and a debts free life
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