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Our desires vs. our needs. How this opposition influences on decision making?

Does money rule the world? We often hear this phrase wherever we may be.

Why? It's simple. The lack of money is sharply felt, but its presence is also somewhat the equivalent of freedom.

The freedom to go wherever you want, to buy what you desire, and to purchase all your basic needs.

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Many people live “from paycheck to paycheck” and are constantly searching for jobs with decent pay. Many individuals aspire to go abroad to gain financial independence. This dream often leads to an aspiring new immigrant to take out loans from banks or friends and family. People's lack of financial literacy greatly affects their welfare. Like our parents, we weren't taught financial literacy at home or school. But learning about this is the key knowledge to being financially capable in life.

One of the few things to keep in mind is that we need to change our habits and methods of managing our budget if we want to change the way we look at our finances. Financial literacy will help us live a more stable life.

Let's sort through the most common mistakes that we make when it comes to our financial situation.

Spend it all at once

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Do you save money for the rainy day? You always need to take certain precautions by saving money for unforeseen expenses. This eliminates the need to borrow money from a lending bank or the need to use your credit card. Make it a good habit of saving part of your income. You can start by saving 10% of your salary or wages. As you learn to adjust and adapt to your new budget, you can gradually increase the amount of money you want to save. So, in case of job loss, emergency car or home repair, or any other circumstances, you know you have a safety net.

"Life on credit"

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We've all noticed the enticing loan ads on TV, the Internet, or wherever we get your ads from these days. What's important to understand is that sometimes consumers tend to request new loans just to repay the previous loan. If this is the case, such a strategy is not conducive to one's budget. But if something unexpected does happen, we suggest that you use the services of trusted lenders.

Poor family budgeting

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Many families do not have a set family budget and do not know where the money went. With managing expense items, you can find where all the money is going to and how you can allocate for essential and non-essential items, so you can keep the balance positive. It is worth trying to keep a spreadsheet of all income and expenses.

One source of income

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In this time and age, it is quite unsafe to only have one job per household. What you need is some kind of “refinancing” by taking in a part-time job. This can be a hobby that generates income, creative projects that give profit, or other freelance opportunities. This can help you stay afloat in case of an emergency.

Spontaneous purchases

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We are constantly bombarded by discounts and deals we can't refuse, and we end up impulsively buying goods and products. We often justify these purchases. To make sure you're not impulse buying, we advise you to use the “24 hours” rule. Don't buy those shoes you're looking at for the next 24 hours. And then after one full day, ask yourself the question, "Do I need these shoes?" As for food, the general idea is, do not go to the store hungry. If you do so, studies show that shoppers end up buying unnecessary groceries. The best advice is to make a checklist of all the necessary products and stick with them.

Stagnation and sitting in place


Stability is good, of course, but you should always go forward to build up your financial resources. Set new goals, that is, plan financial opportunities by investing in purchasing a house, an income property, new household appliances, and don't forget to invest in yourself with a much-needed vacation.

Control your income and expenses

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By correcting the above mistakes, you can radically change your attitude to money, thereby changing your daily habits. It’s easy to reach a qualitatively new standard of living, there are plenty of tools, you only need to carefully approach the issue.

The Internet and YouTube are full of webinars and trainings, and many of them are offered for free. Don't miss out on that!

There are several mobile apps that can help maintain a family budget. It helps you track your monthly income, expenses, and balances your finances.

All you need to do is to want to change your life and attitude when it comes to your finances. Act and reap the rewards.