Friday, May 27, 2011

How to spend less!


For too long I want to talk to you  guys about  money. I’m specialized in financial management for the middle market companies, but I would like to try making some guesses about personal finances and talk about it with you. The truth is that when money is ours, the story is very different from the cash management of in a company, however, some lapses occur somewhat common on the both sides and that's what we’ll  think about and try to avoid, ok?

The truth is that I see that so many companies generate investment debts that, when the
director take the decision to commit to them, they seem to be very important and extremely necessary to create returns in the future. At home, how we see this situation? We make the investment into an expensive skin foundation that apparently can not be replaced by any other on Earth, because the tone of our skin.

The result is that, many times the investment business is not rewarded with the profit people were waiting for. And often the spent with the perfect beauty products or even with that thing that looks like it would turn in the best hobby and has not turned,
can only be a non health spending and can make all the difference up front, when you’ll do an acquisition well planned and really needed. The danger is that the opportunity to do that extension course, a family trip or even attend a emergency, the lack of capital could make you get crushed.

Through my travels, I've noticed that many of these compulsive spending is a reflection of some frustration. Do you know that compulsive overeating that at times we do
when you are anxious? Well, with money can occur the same thing. See if you know this story ... It’s a hard day's work, you had an argue with your boss, the boyfriend didn’t appear at the end of the workday to give you a providential ride, what do you do? Go shop! Just to see the stores, have some frozen yogurt ( to not get weight, right?) and ends up going home with one (or many) bags.

To avoid the problem, there are some basic tips, I’d like to share with you to  help your financial life and, yes, may even create some money left  for new shoes. Prepared? So let’s go.
  •  Budget is the magic word. Have one in Excel or on the classic notebook, but just get it done. You need to have at the top of your mind how much are your fixed expenses (rent, light, phone, home purchases), your projection of spending on credit card, how much costs to you to maintain a car, etc. That done, go to the second step. 
  • Savings. It is guarantee of sleeping well at night. Determine a percentage that will go to the savings account every month. Maybe you don’t know for what purpose you are doing it now, but some day you’ll be thankful you did. 
  • Do not go shopping in the days of rage, it’s like go to the supermarket with hungry. Leave home with a route on your head: I want to buy this, this and that. Try to remain on schedule and only buy more then this with two conditions: 
                  a- it fits on your budget,
                  b- if you’re sure you don’t have anything alike in your closet.

  • Try to buy only when you've used what you have. For example, buy books only if you have read all you bought before, buy chocolate only if it has no more at home. 
  • Those purchases for a new hobby, like paint, sewing machine, guitar, tennis racket... Well, buy them when you are sure it will become a current activity in your life. 
  • Never use overdraft limits or more of your credit card than you can afford. Interests are not worthwhile, anyway. 

Always remember that your purchases should make you happy and not make you feel worried about your bills.
That’s it, girls... I hope you make good purchases. 


Anonymous said...

Good ideas, thanks for sharing! It's an important theme!