“A rich man thinks differently because he counts money. Therefore, he has a lot of them! Many people think so, and there is nothing wrong with it. In fact, everyone needs to develop this habit, and here's why.
It is important to understand that the rich do not just count how much they have in their wallet, they count money, taking into account all the transactions that are associated with them.
The most important thing to remember is the calculation of all expenses. Ideally, it is necessary to paint everything down to every penny. By regularly fixing each item of expenses, in the end you can calculate the expenses for the month.
What can be included in the costs:
- Obligatory payments (utilities, taxes, etc.);
- Expenses for entertainment, medical treatment, clothing and food;
- Buying expensive items (like new household appliances, electronics, etc.);
- Expenses for children.
After that, it will be clear what and where the money will go. This will make it possible to more purposefully increase income for a particular item. After that, it will become clear which of the cost items can be reduced.
In order to get the amount of income, you need to subtract those that are spent from the money received per month. The difference will be the real income that can be saved. If there is no such surplus, you need to once again refer to the costs for each item and understand what can be reduced from this and what can be completely eliminated.
