The relationship with money is complex and we often let it be the money to take care of our life, when it should be the other way around. Knowing where our money stands is essential for a healthy financial life. You do not have to earn a lot to be financially healthy.
There are many people who, even making big bucks, are financially ill. On the contrary, there are many people who receive values close to the Minimum Wage and have a health insurance of iron!
Money does not evaporate!
There is a very typical expression, especially at the end of the month, which is “I do not know what I did for my money! It seems to have evaporated.” Now, of course, money has no magical properties that can disappear, evaporate. What happens is that the vast majority of the Portuguese do not know where the money went. It’s because? Why not make Family Budget!
A Budget To Save Money
When we think of the word “budget” we associate it with something very complex and boring, but it does not have to be that way. Making a family budget is not complex like the State Budget, nor the company where we work. We are all called upon to manage our household finances using this powerful tool.
Before you say you can not afford to save money, ask yourself if it’s a real family budget. Is that if you do not make a family budget, it will be very difficult to enter the culture of saving. And again, do not take refuge in expressions such as “only the rich can afford to save.” The data of the savings of the Portuguese families do not demonstrate this. The real family budget can not be a mere control of expenses and a daily attention to the balance of the Order Account.
A Family Budget is a written document that begins to be elaborated based on the income (the money that enters our house), whether expressive (ordered) or almost residual (credit). Only after considering the recipes we can look at the monthly expenses. We can not leave a penny out, because here is the difference between saving or not.
Someone who writes in the budget who spent € 200 on food is probably because he is disregarding something. Those who make a good Family Budget will know that they have spent food, for example, € 215.68 and not the € 200 mentioned above. Have you noticed that another 15 € / month, or less 15 € / month, is 180 € / year and this amount makes a difference to many people!
The word “paradigm” can be used in different contexts and therefore does not always mean the same for everyone. The philosopher Thomas Kuhn explains to us that paradigms “are models, representations and interpretations of the world universally recognized and shared by members of a community”. If we look carefully, the financial paradigm we move into has not worked for many families. It seems that more and more families are insolvent (bankrupt).
This situation leads us to reflect on the need for a paradigm shift. Doing what was always done does not work. A good image is that of the hamsters running on a wheel and tired of running, but when they stop they are exactly where they left. For the hamster to advance you will need to get off the wheel. You must do differently.
The need for change begins in us. We can not expect any external intervention to change our circumstances. We are the first ones responsible for our life.