Principles of Personal Finance

There is never enough money and it does not depend on level of income. There are always skin-deep desires and it feels like making them come true right away. Oftentimes, those are some little things, which cost a fortune. It hurts that being unable to save, we cannot make our dreams come true and they are of more importance than whims. This is why it is important to plan one`s budget and it does not matter whether you live on your own or have a family you live with. The most important thing to know is that economy is equal ranking to greed. It helps to manage expenses and even increase your income.

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What do you need economy for.

First of all, you need to understand what you need to save for. On one hand, you may feel like you no longer want to borrow until you get a salary, on the other hand, maybe you have dreams to make which come true certain expenses are required. You may spend saved money onto a trip to Caribbean islands, for education abroad for a child or buy a car. Visually of an aim makes you closer to saving money.

How to start saving.

First of all, write down all the sources of incomes (salaries, scholarships, part-time jobs, bonuses) of your family. After that, write down all the necessary expenses (payment for utility services, education of children, petrol expenses, mileage, food, clothes). In order to make it right with expenses on food for example, you should write down how much you spend on food during two weeks making a shopping list. Follow the list. You will get to see that such a list will help you to save extra expenses acting impulsively. Remaining balance even if it is going to be little put on deposit account or invest in shares, gold, etc.


Oftentimes credits are given on unfavourable terms consuming a budget. Which is why if you have already taken a credit, the remaining balance is to be paid off in order not to over pay in the future. If you have credit cards, try to forget about their existence as long as it relaxes and we spend more than we can allow ourselves.

Do not overpay.

If you plan on making a bigger purchase, do not be lazy and find out the price for the thing in different shops. Findouthowmuchitcostsonline and if there is a guarantee. Also, pay attention to what tariffs of mobile and internet connection you use. Perhaps, therearelucrative offers from other operators.

Also you can save putting water counters, fixing all the cranes and water supply system. And energy-saving lamps, which consume 5 times less than usual ones will help to decrease expenses on community facilities.These methods will not bring economy into your budget only but will help environment.

What you do not need to save on.

Always buy goods of high quality with a guarantee. To begin with, it concerns household appliances. To buy cheap shoes you are to wear for one season only is also rather irrational. This is why there is no need to save on it. Do not save money on your spiritual and individual development: foreign language courses, traveling, self-education. Developing yourself you can open new talents and skills within yourself, which, perhaps, will become sources of your incomes.

About the author: Melisa Marzett who works for at this time is able to write on anything due to her natural curiosity, passion for writing therefore good imagination and writing skills. She is outstanding at what she does, which is why it is always a good idea to ask her to write a guest post. It comes out well because done with love and passion.

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