How to make sure you never borrow
How to make sure you never borrow

We want to travel to different countries, live in a comfortable apartment and ride a good car. But there is one problem - we constantly do not have enough money for all these accomplishments. How can we fix this unpleasant fact?

How to make sure you never borrow

Evgeny Gorbunov, Head of Investment Products and Technologies, Otkritie Management Company, will help us figure this out.


“A simple and accessible tool for organizing personal funds for everyone is financial planning. With the help of it, you can organize your finances in such a way that there is always enough of them in the present and worthy capital in the future is formed. This is an opportunity to stay within your budget and spend as much as you can afford right now.

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So, here are 10 simple steps to help you plan your expenses as efficiently as possible:

1. Keep track of your spending

Manually or in a special application, but always on a daily basis. This information will come in handy for calculating basic costs and will help you identify areas for savings.

2. Don't spend more than you planned

Spontaneous purchases are a surefire way to spend more than expected and the start of financial problems. Make it a rule to make lists of goods before going to the store, and think over large purchases in advance and find the most profitable purchase option. Thus, you will always be able to determine the amount of expenses and adjust the list taking into account the available budget. If it is planned correctly, unnecessary expenses can be avoided.

3. Plan your budget based on real income

Take into account only the amount that is "on hand" on a permanent basis. Accounting for ephemeral income (help from loved ones, possible bonuses, etc.) often leads to a lack of funds. Let the desire to make a purchase when additional funds appear will be a pleasant surprise, and not a reason for a loan.

4. Determine the budget for a short time

To begin with, let it be not a month, but a week. If within a week you do not meet the planned limit, it makes sense to revise the expense items and identify the error before it leads to a serious overspending.


5. Give priority to compulsory spending

When planning your budget, consider the top-priority expenses: food, utilities, transportation, etc. The resulting balance is what you can spend on pleasure or, for example, invest.

6. Pay bills and pay off debts on time

This obvious point is violated quite often and entails not only the loss of funds due to interest payments, but also the possibility of obtaining a loan in the future due to bad credit history. Make it a rule to always pay at least the minimum loan payment on time (pay utility bills, taxes, etc.). In addition to financial discipline, you will strengthen your reputation and become a desirable client in any bank.

7. Don't forget about inflation

This applies to long-term planning. For example, budgeting for the new calendar year. Also, do not forget about "personal" inflation. The cost of foreign goods is growing faster than domestic ones. Analyze what you buy more often, and you will understand the approximate percentage of personal inflation. It often differs significantly from the one announced in the media.

8. Look for profitable solutions

This "quest" really works. However, not always goods and services marked "advantageous offer" or "sale" are profitable. All you need to know in this case is the original cost of the product, as well as carefully read the footnotes and conditions of purchase.Remember the original goal - to pay less, but at the same time receive a product / service of proper quality, in full and on time.


9. Learn and use knowledge in practice

If you don't have enough experience in the financial sector, seek it from professionals: read articles and financial reviews, study the experience of successful people and choose the methods and solutions that suit you. Try your options in practice, thereby creating your own unique path to financial well-being.

10. Set long-term goals

Investing in the future is a wonderful habit for a financially successful person. Try to save at least a small amount for things like educating your kids, supporting yourself and your family after retirement, or making your childhood dreams come true (traveling around the world, a house by the sea, a fancy car). Don't be afraid of ambitious goals! In order for them to be long-term, to accumulate on them for a long time. And even if now long-term savings will be only a small part of your income, with the growth of prosperity and the absence of debt, you will be able to save more money, getting closer to your goal."

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