How to stop wasting money and make a fortune

Understand the reasons why most money is wasted

Let's start simple. Try to remember the last time you made a large, but not too necessary purchase. As an example, take a fictional character named Petya who is doing well and has money to pamper himself.

Recently Petya was bored and he bought a new TV. The old one is only a couple of months old, and the new one with a longer diagonal has become 1 mm thinner. The example is taken for convenience, it can be anything: a new shirt, mascara, or even an extra chocolate bar. The first few hours Petya has a period of euphoria, he is quite pleased with himself, smiles, he even thinks that this is happiness.

Starting from the second day, the joy of acquisition begins to fade away rapidly. Petya begins to get used to the new TV and after a month he is disappointed, sadness appears on his face. Petya still has enough money, and in order to stifle his despondency, he dreams of a new smartphone.

Why it happens? Emotions are a very fleeting phenomenon. Sometimes we are happy, sometimes we are not, and this is an endless cycle inherent in human nature. Moreover, people overestimate the importance of emotional events and the value of things. At the moment of realizing that the purchase no longer brings the former delight, disappointment appears, and in order to drown it out, the person again tries to buy something, returning himself to the vicious circle of waste. Even if there is no money for a TV, money is spent in the nearest shopping center.

It is quite easy to avoid this side effect. To do this, you only need to be guided by common sense.

Determine the degree of need for the planned acquisition.
Is it possible to purchase a product of similar quality, but at a lower price?
Make a personal budget plan for a specific period (several days, weeks, months, years).

Yes, these are trivial and elementary things, but most forget about them, misjudging the benefits of purchases. Such an estimate of the profit-to-cost ratio is disappointing. If the value is determined correctly, even after a long period of time you will receive emotional satisfaction from using the purchased item.

Time to act: multiplying free money

When the first step is completed, the problem and its causes have become recognized, it is time to move on to the second step - action. Let's be realistic and admit that there is no result without concrete action. You can't get rich just by thinking about how you get rich.

Saving money in a bank deposit is, of course, good, but is it effective? Consider the following example. This time we will meet with Misha, who has long been interested in the accumulation of funds. Misha with amazing stability deposits about 20% of his salary on a bank deposit at a rate of 6.5% per annum. The rate is taken as close as possible to reality in the Russian Federation today. Misha managed to accumulate 500 thousand rubles, for the previous year, taking into account capitalization, he received an income of about 32 thousand rubles, and for the current year - about 65 thousand.

Misha has a friend, Vasya, who also has 500 thousand rubles, but actively invests part of his funds in securities on the stock market. Vasya knows that there is a risk of losing money, so he invests not everything, but only 10% of the capital, the other 90% is on a bank deposit.

Again, let's be realistic. Vasya simply buys shares of well-known companies and holds them. In the first year, Vasya lost funds due to the market fall, the loss amounted to 5% of the money invested in securities. As a result, there was practically no profit, but thanks to the deposit, Vasya remained with his friends.

The next year, Vasya again invested another 10% in securities, the total amount of his investments amounted to 75 thousand rubles, taking into account 5% from the previous year. This year saw a record growth in the stock market and Vasya tripled the funds invested in shares. As a result, the profit amounted to 225 thousand rubles, plus about 30 thousand more from the bank deposit.

Vasya earned much more than Misha, practically without risking it. The profit received and the additional accumulated money (in addition to the deposit) allowed Vasya to fulfill his old dream - to open a small cafe and delight other people with the best coffee in the area. Vasya is happy.