5 strategies to save money

Emotional control

The psychological state of a person strongly affects his attitude towards money. Uncontrolled emotions often lead to irrational spending.

For example, many see money as a universal antidepressant. They all got me - I'm going to buy another unnecessary rubbish. According to psychologists, this behavior is an attempt to prove superiority to the offenders (“I’m better because I can afford it, but they cannot”). What does this lead to? Right, to throw money down the drain.

Therefore, one of the strategies that will help you save significantly is to control the hidden emotional factors that eat up money.

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Refusal of unnecessary

Check your weekly shopping list. Is everything in it vital for you? We are not talking about refusing to buy meat (because it is expensive) or buying a new iron (you can walk around in a non-ironed one).

Savings should be reasonable. We are talking about things that you really do not need, but, having succumbed to advertising gimmicks, you spend money on them over and over again. For example, is it possible to care for hair without the miraculous conditioner balm?

In fact, there are many things that are not worth spending money on. Exclude them from your shopping list and you will see how much free money you have.

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The difference between price and value

Warren Buffett is a well-known entrepreneur, the largest investor in the world, one of the richest people on the planet. His fortune is estimated at $ 66 billion.

At the same time, Buffett is incredibly economical.

Ben Graham told me a long time ago that price is what you pay and value is what you get. It doesn't matter if we're talking about socks or stocks, I like to buy when the price is as low as possible.

But savings are only effective when you understand the difference between price and value. "Grabbing for a cheap price" does not mean saving. To save is to buy a valuable item at the lowest possible price for it.

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Family frugality

Why can't most families save money? It would seem that the answer is obvious. Utilities, transport, food, household items - not all of the family's expenses. And also entertainment and various unplanned expenses (such as a sudden birthday invitation). But often the reason is not that there is nothing to save from, but that the spouses do not know how to save.

Saving a family starts with planning a general budget. You need to know how much money and what you are spending on. The next point is the economic attitude to everyday life. If the husband can fix the tap himself, why pay the plumbing? Paying bills on time and partnering with friends for mutual benefit is also important. There are actually many options for saving money in the family. Just use it!

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Smart shopping

You can significantly save on payment for goods and services if you make purchases prudently. For example, you shouldn't chase brands. First, a big name and a high price tag do not always indicate quality. Second, unadvertised counterparts are often just as good.

In addition, you should carefully monitor your expenses if you pay with a bank card. It is easier to part with intangible figures than with real paper money - it has been proven by psychologists.

There are other laws of smart shopping that you should be aware of if you want to learn how to save money.

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