Recommendations for increasing income and decreasing expenses?
There is a period of saving and a period of investing. You can spend more today, but there is an opportunity to put some money aside for the future. Theory and my long work at the bank shows that most people say, “I’ll consume today: go on vacation, buy a car.” People expect income levels to rise. Many people who have lost their jobs in the last two years can’t find a higher paying one. We lived in a boom time. Whatever you made, you can sell. Whatever you could do, you could be bought. It’s not like that now. People who don’t have stock go to absolutely horrible lengths to support themselves. Learn to deny yourself today. Create a deposit system and save whatever it takes. Every period at least 10%. They often say, I’ll save up 1’000 rubles or dollars and put it on deposit, not ready to go to the bank every two weeks to open a deposit. So gradually spend. If some amount is obtained, you take it to the bank. Then you open another deposit… After the first term expires, the amount will not be very circular.
How to save, invest and reduce the personal debt burden associated with consumption?
It’s worth knowing:
1. The better documentation you provide to the bank, the better credit rates will be available.
2. The more money you have, the more carefully you will be treated. Many people don’t even realize that you can haggle at the bank. If you want to place a large amount and go to a regular teller, the bank teller will just do the bidding. You can go to the manager of the branch, office, or division. They have the authority to give a big rate. It doesn’t seem like a lot of money, but it’s what your life is made up of.
3. Many people take out a credit card for repairs, car, appliances, vacations. They think they will use the money carefully. Often put reminders in their phone to pay their loans on time. Understand, banks basically make money on penalties and fines, on loss of rhythm, on the calendar. After seven months, the vast majority of people are out of schedule. Watch it carefully. Put it on a calendar that will make a payment reminder every month.
How do you survive in the financial world in the long run?
1. Limit your consumption. Don’t strive to live a life of ostentation. Expensive suits, shirts, shoes are contrived. Louboutin boots won’t wear much better than regular ones. What kind of car you drive is not important. The difference between a small Toyota and Audi Q7 inside is small.
2. Try to save all the time. A small part of it, even if you do repairs, even if you do not earn much. Get used to living on 90% of your budget. Don’t touch your savings, don’t borrow from yourself. Forbid yourself from taking out loans. Open deposits as soon as money is available and don’t break it off. Only lend money to people around you at interest, because the bank would have interest. 3. Consistently calculate future spending. Don’t live only for today. Budget for at least one year. Three to five years at most.