How often do you actually stick to budget? Most probably not often but every time promise yourself to spend less next month.

Traditional financial education preach about strict budget as a way to achieve financial satisfaction. But in real life counting of every cent spend create guilty feeling.

My personal approach to family budget:

1. Keep rent and utility bills as low as possible. In case of mortgage buy smaller apartment / house.
2. Keep transportation expenses low. Why to spend countless hours and money on transportation if you can rent flat (share flat) just near working place. Even if you own flat which is far away from office than you can give it for rent. For that money could rent shared flat just near working place.
3. Keep food expenses low. Cook more at home, eat before going out with friends, plan meals, precook. By taking care about diet you take care about health, wellbeing & long life.
4. Do regular physical activity. This prevent from obesity, diabetes etc. By staying in same shape no need to buy much clothes because of size fluctuations. By regular physical activities less medical expenses needed.
5. Keep shopping expenses low. For that second-hand shops available. Why to pay 100% of price if same item could be purchased in 30% of original price?
6. Invest at least 20% of income. Main word is invest, not only keep at home in form of cash or on bank account with tiny interest rate.

With optimized expenses need to count every expense gone. I personally found that if to count and write down every expense that guilty feeling appear. Even purchase of most desirable item lose it’s satisfaction if guilt arise.

If debt is your reality than pay it fully before thinking how to invest money. For more information please check link https://my-financial-wealth.com/2019/01/15/how-banks-make-money-on-your-credit-card/

For modern shopping became normal spontaneous and emotional purchases. In most cases it’s not buyers wish to own item, it’s tricky sales strategy which present emotional shopping as easy fix (bad mood, anxiety, bored mood etc). Let’s be honest, do you really need new designer bag if on second-hand market same could be in half of the price? Or 5 phone cases purchased just because it’s cheap? Or fast fashion apparel which fall apart after first wash? Think before spending your hard earn money. Measures price of item in hours which you need to work in order to afford item.

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