Earn more money – it’s great. To earn a lot more money – it’s even better. It’s great to develop their professional skills, to develop interesting business, climbing the corporate ladder, etc.
However, in this article, I would like to talk about the problems and is extremely serious problems, which are of a money declines, income etc. For a couple of decades, I have had the opportunity to observe for themselves, other people, the development of foreign businesses and their owners, I have just started to study the simple and seemingly obvious how to handle the money.
How to Distribute the Family Budget
Properly distribute the family budget is not less important than revenue raising methods.
The decline in income destroys personality, destroys families, often resulting in a “war” in one form or another, until almost real massacre, betrayals, lies and so hostile .
If you are quite young, most of all, this article will not help you. You have too little experience and too great optimism. (What is normal)
However, no such youths and young girls, I appeal. If you have lived at least a little, you may know how bad effect on the human psyche and its relations with others major life failure.
Such failures in life and I attribute a significant drop in revenue. Under it we mean a decrease in income for at least 20% or more.
Here below some examples.
A man fired from their jobs for various reasons. Sometimes it’s just a cut. Sometimes a man thinks he is indispensable and did not want to “bend” to the requirements of clients and managers and it is fired. At the moment I’m not even talking about drunkenness, not leaving a job, etc. gross things.
After reducing the climate in the family income is significantly reduced, and the family often breaks up. The woman leaves and all. It is not necessary even to another.
I have seen such examples have dozens. And here is stupid to accuse a woman. The human psyche, and especially women, requires stability. The man was unable to provide the stability and should reap the benefits. In addition, after the fall of the income he often behaves inappropriately, that is sitting on the couch, instead, to accept the new reality and to begin to act. At least to start learning properly distribute the family budget, which has remained.
Even if the family does not break up, it is going through an extremely complex and difficult time. It is often necessary to ask others for help. (And this is extremely unpleasant) Sometimes you have to sell some things, which are used to. (For example, a vehicle)
We often give up the familiar services, for example, paid medicine, and stand in line at the clinic.
And if the fall in income in the range of 20% may even rally the family, something more serious drop in income (or other major failure) often destroy the family.
And not only the family but also of the male psyche. First of all, his self-confidence, and after him the desire to do something to move. And when it goes, it goes, and higher incomes in the long run.
Thus, a large decrease in income always leads to big problems in the family, and often a life reduction of confident men in their abilities.
Two friends founded the company, there is something of trades, that is not so important in this example. And interestingly enough, they began to complement each other’s work and became very good money.
At some point, the income of the company because of too risky expansion policy, is seriously reduced. It took more than half to reduce staff, it took the move to a much more modest premises, it took some time “to fight back” from creditors and employees fairly demanding their money.
This led to constant disputes between friends, conflicts, clarifying that “who is to blame” and “what to do” and the company broke up shortly. Each of the friends founded his company. However, the exit to the previous income level, despite the fact that the external circumstances affecting the yield reduction have ended, neither one nor the other failed. This is understandable. It does not become two complementary abilities for people and reduced confidence. It ended the friendship and childhood, although they are greeted at a meeting and even ask: “How are you?”.
At the same time, to draw your attention to the fact that even at the peak of lower revenues, they were still higher than when the two friends were employed. That is, the main thing is not so much in revenue as in its decline .
In this example, still ended up relatively well. It often happens that the bankrupt company (and therefore, one of the founders gets nothing), gone clients are suing over the years, etc.
Male entrepreneur who builds industrial buildings. In principle, a man earns well. However, the problem is that most of the money coming to it after construction of the building, which, taking into account the specifics of his work, about once a year or a little more often. The rest of the money comes from, but very little.
With a relatively high income, he and especially his family permanently live in suspense. The fact that the man has taught his family to a relatively high income, when the arrival of the main money and family “shikuet”. However, there are times continuously for six months, when there is no money for essentials. That is no money to buy new clothes to replace the torn, nothing to repair the car, buy a new cell to replace a broken, etc. It is especially important to learn how to properly distribute the family budget!
Thus, we see that a significant decline in revenues (and other major failures) lead to the destruction of the human psyche, the destruction of families, the destruction of long-term friendship and cooperation.
For a person, his mental health, his family happiness, his friends and acquaintances, and so much better albeit a slightly smaller, but steady income than the income spikes up millions to drop to near zero. In addition, it is important to avoid a significant and prolonged decline in income . And it is important to learn how to properly allocate the budget that is.
Now I’m not even sure that the most important – is to increase income. Perhaps the preservation of the stability of income no less important task than its increase .
Do not misunderstand me. I do not for the preservation of the stability of income in the amount of 100-300 dollars a month. Of course, this income need to throw all the forces at its increase.
However, higher income is less stable almost by definition, and therefore need to take serious measures to ensure that he still did not jump back and forth like a pendulum , if you do not want your psyche and your loved ones just not jumping up and down. It is especially important to learn how to distribute it, if the income is still much “jumping”.
How to achieve greater stability of income ?
First, the easiest to understand and the most difficult to implement a way – it’s just a reduction in current expenditure .
I think that there is nothing particularly incomprehensible. If, for example, family income is 100 thousand rubles. / Mo., And they live up to 70 thousand rubles. / Mo., The revenue decline of up to 70 thousand rubles. per month. almost family feel. Of course, with a decrease in income will not be any money that were deposited before that in real estate, stocks or even into something useful. However, the most important thing for the human being and the family – is that running costs will not change, or if they change, it is insignificant.
This method is applicable for the individual, family, and business. After all, in the business it is that the money is just a rod. This, however, is not a reason to spend them. After all, for example, if you become a lot to pay employees and pay less to become the decline of income 2 times, they smash to pieces your company, even if the lower salary will be higher than the market. (They will not work, will steal into the open, to be almost in the open pour clients go to other employers, even if at a lower salary, will complain to labor inspection, etc.)
In this article I will not paint, how to reduce costs.
However, if you can reduce them during their windfall profits (or company), then it most probably you will save yourself from the hassle of so many that can not even imagine.
The second way – is the creation of reserves .
Provisions allow relatively painless to survive the short-term decline in revenues, which are the most frequent.
A man’s wisdom, and the proper distribution of the family budget is not only and is not so much to predict when there will be a sharp decline in income or unexpected major expenses (car broke down, you need to move, torn jacket, medicine, etc.), as in to understand that sooner or later, some of these events necessarily occur.
Recall that the higher the income, so it is not uniform, and the more important the observance of these rules. It is relatively easy to borrow from colleagues or relatives of a similar amount of 100-200 dollars. Much more difficult, if the income you high. Try to seize the relatives or acquaintances similar amount, for example, $ 5,000. Even if someone wants to lend it to you, you will not have many.
The easiest way to protect yourself is to create minimum reserves – and creating them, not only in money but in things.
Of course, in theory it is best to reserve the money was. In practice, the money is always needed somewhere, and they are much more difficult to keep in hand. I suggest you create a reserve of things that much easier. What exactly can be booked in things? Depending on the income and lifestyle – it can be two different things. Here are a few examples.
– You can develop a habit of not spending gasoline in the car to zero and fill up in advance. It is clear that if there are small breaks in income, then you do not need to spend money on petrol when there is no money. Then I will not comment.
– You can pre-pay utility costs for several months in advance,
– You can buy home food and household products with a small margin. (It is understood that the products based on the expiry date.)
– You can buy the necessary medication with a small margin, and not allow them to fully ended.
– You can make on the mobile, Internet, etc. payments have always been money.
– You can train yourself to not to reset the bank cards to zero when taking the cash and leaving them at least a few thousand. (Many are now 2-3 on the cards, and this is a decent amount)
– You can advance to repair clothes.
I think that from these examples, the principle is clear. Examples focused on the average level of income. It is clear that they need to be adjusted upwards or side, depending on lifestyle.
It is clear that the provisions in the things that I have listed above as examples, not intended for large cash crises. However, most cases small disruptions in the money (when they needed money 2-10 days). Then things decently reserves come to the rescue.
Reservation in things – is a powerful technology that allows you to move from theory to action.
The theory, I hope for you to understand. In short, we believe that sooner or later in your life will occur any unpredictable loss of income or unexpected expenses. What specifically for this event will be, we do not know, but it sure will sooner or later. Themselves, these situations are extremely destructive impact on the lives, relationships, business, until the collapse.
A reasonable way out of this situation would be to accumulate some money to in which case they could be used.
However, the transition from theory to action is what to save money – this is an extremely difficult task for 80-90% of the population. Provisions are formed and immediately spent on something that is not associated with the reserves.
It is much easier to do things in the reserves. Things – it’s not such liquidity in both funds. If you, for example, bought the gasoline in the tank when 30 percent more, even if you wanted to go to the bar and have a beer, then you’re back to petrol from the tank will not get and will not sell.
If you have a pool of money that are in your wallet, then you simply buy beer, justifying it with something, no matter what.
Of course, redundancy in things just requires some discipline and not available to everyone. However, if the ability to not have to spend all the money 10 percent of the population, master redundancy in things much easier. It is available to about 30% of the population.
I repeat that the reservation in things you can adapt to any lifestyle and income.
This can be for high income:
– Early redemption of the apartment on the mortgage, buying another liquid real estate, which do not live, buying office for business, etc.,
– Buy shares,
– Purchase of foreign currency (especially rare), gold.
I am not talking about the benefits of shopping data, and that these products are not as liquid as money, and much easier to them to not spend on something and save it as a reserve.
Accordingly, a crisis (not at all, of course, and your personal God forbid) you can sell real estate, stocks or gold.
For relatively low yield may be:
– Stocks of food like cereals, canned foods,
– Inventories of cigarettes,
– Stocks of household supplies and some clothing,
– Payment of rent apartments, loans, utilities, etc.
The principle regarding universal.
Again. Learn how to back up in things several times easier than the money .
I give you into the hands of technology, that is, the practical implementation of the method is very useful theory. I did not come up with it, of course, but that does not cease to be less valuable.
So, let’s sum up how to distribute the family budget correctly and wisely.
– The higher the income, the more it is, by definition, less stable and, therefore, need to take special measures in order to avoid a sharp fall, even short-term.
– For the human psyche income stability, after exceeding a certain minimum level, no less important than the income itself . No wonder so many people are sitting on a stable salary, but have a chance to significantly increase revenue, but revenue at the same time will jump.
Do not think that you are arranged differently. And even if so, there are people close to you, for which stability is crucial.
– Stabilization of income – it is solvable problem (up to certain limits, of course). Two reception reserve and reduce costs, we have considered in this article. The following techniques will consider in the next article.