Personal finances

Written by Pamela Heart on March 08, 2016

Learn to improve your personal finances

We have lived through dark times. For years the growth bubble in which was immersed the country has made us believe in a richness that really belonged to us. However, the reality today is very different and millions of families live in the midst of serious economic difficulties, not because they are unemployed, but because despite having incomes fail to stabilize their personal finances.

With this article we will try to bring some light to those who are experiencing serious difficulties in reaching ends meet solvency. also we discuss the culture of consumerism and propose some tips to avoid compulsive buying and ordering our personal finances.


The culture of consumerism has led people to confuse the concepts of wealth and debt. Banks, meanwhile, have pushed citizens to fall into the trap services Market immediacy, pushing irrational consumption and to believe that "having more is to be more". Many forget that one is master of what you have and slave of what you owe. Therefore, if you got something out of debt, you really have nothing more than a system of financial slavery.

Tips to avoid compulsive buying

If you think your inner convives with a shopaholic who drags you to a growing debt, perhaps they might be interested in the following tricks:

1. Become the question: "Do I really need this?

When you're in front of the window of the store that you like or against the irresistible item you want to buy, you must think if you really need that. Maybe you should fight impatience, immediacy and ask yourself if you really going to use it.

2. Do not carry over money or credit / debit cards.

Avoid taking over more money just enough to spend the day. Possession of an excessive amount of money could take you to an impulse buy. Most people can spend the day with 20 euros in the portfolio without suffering any trauma.

3. Postpone purchases for the next day.

Do not buy things at the time, postergalas for the next day. As noted above, the immediacy can play you a trick. Good decisions are always meditate, do the same with your purchases.

4. Compare the prices of all items.

When in fact you need to buy something you should get at least 3 different from what you'll buy quotes first. The price of a car, for example, can range up to 2,000 euros from dealer to dealer.

5. Save instead of debt.

The debt is always more expensive. The human being is moved by impulses and financial agencies and marketers know. Do not be fooled by that precious plasma TV you can pay in ten easy installments without interest. Save and buy it when you have the amount of money raised, never before. If you join several small debts of 50-60 euros per month, they are transformed into a huge debt that unnecessarily decrease your personal finances.

6. Use cash, no cards or other payment methods.

The concept of money is abstract. When you pass the card through the same DATAFONO it gives it a euro or 50,000 euros. With the use of cash you you materialize this concept so abstract, you feel your touch, your weight and you desprendes him. Try to make the monthly purchase of 200 euros in your usual supermarket with cash and notice how the sense of loss is stronger.

7. Stay away from shopping as much as possible.

Until you achieve inner healing and discover the reasons that force you to buy impulsively, stay away from shopping as much as possible. Avoid the malls and look for honest people with wisdom that can help you overcome the problem.

Sorting jumbled accounts

There is the case where personal finance problems are not due to problems with compulsive shopping addiction and debts, but is simple and pure disorder, product never having learned to manage money in a systematic way. Accounts jumbled in a person without addiction obey the person does not know his habits, it has not reviewed the numbers. Here are some tips:

  • Pay your debts, it will give you peace of mind.
  • If you have to sacrifice 10-20% of your salary to pay unnecessary debt, that's too high and are on the verge of personal financial unsustainability. You should avoid all unnecessary spending until you get to pay your debts.

  • Use a notebook and record every expenditure.
  • Find a pocketbook and always take it with you. Write down every day every expense you have, however insignificant it may seem. Create categories (food, leisure, housing, clothing, supplies, vehicle ...) and calculates the totals. So get your cost structure to determine which are unnecessary.

  • Make a budget.
  • At the beginning of the month takes a budget that details all your fixed expenses. Aside that money and do not use it except to pay the corresponding account. Also included in the budget variable expenses and learn to estimate them to avoid unpleasant surprises.

  • Avoid unforeseen expenses.
  • Sometimes, unforeseen expenses, no matter how small, usually because of imbalances in your person economy. Try to avoid them, and if not possible, always keep a small savings to address them.

  • Avoid the "small expenses".
  • No expense is small. Sometimes, you avoid buying a valued one in three euros to save paper, and suddenly you find another article of 50 euros which is half-price promotion and shopping. Marketing agencies know that "the important thing for the customer is not how much, but how much you save." It's a trick used to fool the human mind into thinking it is a "small" expense when it is not. Live as poor saving instead of living as poor paying. If you live like a poor saving you will notice that everything works out cheaper. Indebted poor all it is more expensive and lives with anguish because the bank never loses. Borrow from the bank's pact with the devil, an ephemeral pleasure that does not justify a long stay in hell.

  • Control daily spending limits.
  • Suppose away after the accounts must pay monthly and a provision for contingencies your spare 300 euros. In a 30-day month that means you can spend 10 euros a day. If today you exceeding your and you spent 15 euros, tomorrow you can only spend 5. If you can spend less than 10 euros a day begin to save.

  • Leave a contingency reserve.
  • When you pay your salary, an amount aside and imagine that you do not have that money. Depending on your economic possibilities and your own discipline you can start with 5-10% of your salary. Uses that reservation only in cases of extreme need to address contingencies (a fine, vet bill, car repair ...)

  • Do not accept the advice of banks.
  • Banks will always tell you what's best for them to spend your money. Remember the words of Paul A. Believe it Monserrat in Salvados and without question. The bank is not your friend. The bank never will come to your aid. There are many other tricks to align your personal finances and avoid unnecessary hardship, but you can start here. Take it easy, stress-free, and note that it is difficult to change the behavior of a person from one day to another. Set goals and stick to them. Do not forget that is not richer who has more, but who needs the least.