It will be helpful for you to start thinking about what you are paying for. You and your parents spend money on food and clothing, shelter, education, entertainment, leisure, Your life or your money and more.
Somehow, this money has to be made by your work contribution or your parents. Apart from that, your finances are not only limited to your family, but we all also pay taxes to pay for the things we use together in society, such as schools, roads, health care, the police, the fire brigade and much more. Knowing how to handle money is valuable knowledge. It can also be challenging to deal with financial problems but can overcome many obstacles with responsibility and common sense in monetary matters, your life or your money.
Do not be afraid of Your life or your money to learn about money, banking and finance. It all has a significant impact on our lives and is simple if you approach it positively. If you think responsibly about finances from an early age, it can profoundly and positively affect your life. An explanation of the financial concepts introduced in our book, how much do I cost? The more familiar you are with the issues, the better decisions you will make financially.
Table of Contents
What makes one type of coloured paper more valuable than another?
In a dictionary, money is “a public, accepted currency used in business (buying and selling).” Money can be seen as debt recognition. If I receive money from you, I acknowledge that I must provide a product or service for that amount. In this way, money flows between people and enables them to do business. Money is a tool we have agreed to use to facilitate trade. Money comes in various forms, such as paper notes or electronic transactions in online banking or bags. Before money came into being, the most common way of doing business was to exchange goods and services. If there were no money, it would not be easy to calculate your life or your money how much things would cost.
Many small things make one big thing!
We often have to spend small amounts of money without thinking twice. But many small things can cost a lot in the long run. We often spend small amounts and believe that what we are shopping for every time is cheap. If we buy candy, soda and snacks for 1oo$ per week, the cost over the year is 1200$. If we spend $ 100 on mobile phones per month, 1200$, it costs us a year to call. And if we buy clothes for 500$ a month, for example, we spend ISK 6000$ a year on the dressing. If a person who spends the above a year saves as much in return, he can pay for a good laptop or go on a fun trip. Many small things certainly make one big thing.
What are your expenses based on income?
It’s good to have a financial downturn. Including by spending no more than you have in income
The calculator below shows you spending more than you are earning.
The need pyramid
It can be a good idea to ask yourself the following questions before you buy something:
. Do I have this?
. Do I need this? Do I want this? Why?
. Is there anything other than this that I want/need more?
. Can I do without this?
Answers to these questions can be more complex than they seem. Your life or your money, However, we can use the idea behind the pyramid of needs of the American psychologist Abraham Maslow to help us make our decisions.
The need pyramid arranges a person’s needs according to their importance, so we can ask ourselves how vital each purchase is.
Many factors influence our purchasing behaviour and what we define as necessities or luxuries, such as in what society we live in and how old and prosperous we are.
As we become more aware of our real needs, we are more likely to make more conscious decisions when we spend our money.
Maslow’s needs pyramid is about prioritizing our needs according to their importance.
The most important are the basic needs, but we all need to eat and drink to survive. At the same time, we need to rest and exercise and take care of our health in various ways.
Next are security needs, which we can meet, for example, through shelter, insurance, short-term savings and pension savings.
The need for companionship and love is critical to us. Dealing with family, spouses, children, and friends increases our quality of life. A flower for mom, a trip with friends or a date with her love can be a good investment, which is almost impossible to value financially.
The need for self-esteem and respect for others is next at the top of the pyramid. Our actions and actions meet these needs, but by doing well in our play and work, educating ourselves, helping our neighbour, and taking responsibility for our actions, we are more likely to gain the respect of others. Even more important, of course, is self-respect. Investing in various educations, good books or donating to charity can be part of this step.
When handing out money, it is unwise to realize your needs.
Sacrifice cost
How much does it cost to operate a car?
Many people are not aware of the high cost of running a car.
Buying a car
Although it is fun to own new cars, it is too late to say that they are a good investment. A new car drops in value almost as soon as the care plan drives it, and in the first 2-3 years, it decreases proportionally the most in price.
Used cars are different, but it’s essential to determine which vehicles have a low failure rate compared to others and whether they are easy to resell.
Petrol
Is it the most significant regular expense for car owners? Gasoline prices tend to fluctuate according to market conditions, and it is good to be aware of which petrol stations offer the most favourable price.
Inspection
Used cars usually need to be inspected once a year, but new and recent ones less often.
Maintenance
Maintenance includes buying new tires regularly, replacing tires in spring and autumn. The car also needs to be lubricated every five to seven thousand kilometres. Oil, windscreen wipers, and windscreen washer fluid are regular expenses and cleaning and cleaning.
Breakdowns
Cars can break down at any time, and taking them to a workshop can be a nuisance, as they are often unexpected expenses.
Insurance
No one drives without insurance, as traffic is never too careful. Everyone must have compulsory insurance, but it compensates for all damage caused by the car.
Running a home
There are various costs involved in running a home. Do you realize what it costs to have a place together?
Buying a home – Owning or renting?
Whether it pays to own or rent housing has a significant impact on most people’s lives. We all have to have our place, but the answer may differ from person to person and from external circumstances at any given time.
Those who buy their own home need to consider the following.
They own the premises and are responsible for it.
They have to take care of maintenance and bear the cost of operating the premises.
They can acquire value in the housing if market conditions are favourable but are also at risk of losing if the economy is in bad shape.
Those who rent need to keep the following in mind.
They are only tied to the premises for as long as the lease stipulates. The usual notice period for renting is six months when tenants need to find new housing.
They are not responsible for the maintenance cost, but of course, they are responsible for good manners and must bear the price if it is deficient.
They do not acquire or lose money in the housing market but are dependent on favourable rental prices.
Insurance
Everyone must have fire insurance that compensates for damage caused by fire. Real estate insurance covers other damages, such as leaks.
Heat, water and electricity
The cost of heat and electricity can be significant in household accounting. Tenants need to check before negotiating whether heating and electricity are included in the stated rental price.
Maintenance
Maintenance includes painting, caring for the garden, windows, roof and doors. Sewage systems can break down, and leaks can have a significant impact. In apartment buildings, payment is made to a common housing fund to ensure that maintenance is carried out and that the owners are responsible.
Furniture and furnishings
We need a bed to sleep in and a kitchen to cook in. Most have a TV, computers, sofa sets and a dining table. Some furniture needs to be renewed every few years, and home appliances can break down without notice.
Food
Household food costs are often a significant part of household accounting. Sensible purchases can save substantial amounts of money.
Consumables
Toilet paper, towels, soaps and cosmetics, cleaners, scarves, brooms and much more in a similar way help us keep the home and ourselves going.
Payslip – Work
Getting your first payslip is one of the greatest moments of your life. But can you read about him?
Overtime
Taxes
Personal discount
Vacation
Pension
Supplementary pension savings
Union
Employee Fund
Contractor work
Time is money
Work is your service, and the time you give up for payment
When you are at work, you give the employer services and time for payment in cash. You share values , and it is good to look at your work as a business relationship where both parties should profit.
You – provide work and time that you could use for something else
The employer – gives wages in the form of money and benefits
When you have a job in a new place, you must know what is a reasonable hourly wage for the work you are doing;
Tariffs, average wages, and the minimum income can be seen on the trade unions’ websites. For your workforce, you are giving time that you could use in another way.Your life or your money make sure you get a fair wage for your work and know your rights.
Responsible
By signing as a guarantor, you agree to pay the debts of others if something comes up. There are many examples of parents signing as guarantors of loans for their children and losing housing or other property when the child cannot afford the debt. At the same time, some have gone bankrupt after signing as guarantors for their parents.
Objectives
The best way to succeed, financially and otherwise, is to set goals and work systematically to achieve them.
For example, if you want to travel abroad, you need to figure out how long it will take you to save for it and what you are willing to sacrifice instead. By working or fundraising, you can save and save. By skipping unnecessary spending, you can save more money.
To be successful, it is not worse to keep in mind that reasonable goals are clear, realistic and measurable.
Clear
Realistic
Measurable
Valuables
Cannot value something for money. When people are asked to say what is most valuable in their lives, it is often challenging to say the value of what is mentioned. For example, it is impossible to put a price tag on your family or good health.
Why is gold valuable?
US investor Warren Buffett once said he did not understand why gold was valuable. “We dig it out of the ground in Africa to dig it back into the bed in the United States and then pay armed guards to take care of it. I do not understand what gold does that makes it so valuable. “
Various tips
Savings rather than loans
It always pays to save for things rather than borrow for them. Do not buy items if you do not own them.
Learn from the experiences of others
Guarantees and signatures
Default
Many small things make one big thing.
Gain knowledge
Be a responsible consumer.
You are responsible for your finances.
It is difficult to change others,Your life or your money and it is easy to blame others. Take responsibility for your finances. Talk to your parents and those you trust about money. Do not be afraid of bank employees and make demands on your bank. Do not get others in trouble because of your finances.
So, You decide what you want, Your life or your money.
