Unlocking Financial Freedom: Why Money Always Feels Tight and How to Fix It

It's time to face the truth: most of us lack the skills to manage money wisely. If you often ask yourself where your paycheck disappears to, this article will help you rethink your approach to personal finance.

Neglecting Budgeting

Budgeting feels tedious. Collecting receipts and tracking every expense can seem boring when there are more exciting things to do. Yet, when payday is a week away and your funds are nearly depleted, you promise yourself to start budgeting next month—or next Monday. Unfortunately, that Monday rarely arrives.

Action Steps

Download an expense tracking app or check your bank’s mobile app, which likely offers monthly spending summaries. You might be surprised to discover how much money goes to frequent café visits or other regular expenses.

Avoiding Savings

Saving money often feels dull compared to paying off debts or spending on immediate pleasures. Committing funds toward a specific goal, like buying a car, can be challenging when other tempting expenses compete for attention. The result? No savings and no progress toward goals.

Action Steps

Set aside at least 10% of each paycheck immediately upon receiving it—not just what’s left over. Open a high-yield savings account and automate transfers. For multiple goals, such as a vacation and a vehicle purchase, consider opening separate accounts to allocate funds according to priority.

Procrastinating Payments

Delaying bills such as utilities might seem harmless, but it often leads to higher fees and interest. Postponing payments forces you to tighten your budget later. Like saving, resisting immediate temptations is difficult but necessary.

Action Steps

After setting aside savings, deduct your monthly essential bills from your income. Treat the remaining amount as your disposable budget, and pay bills promptly to avoid penalties.

Disliking Planning

Waiting until the last minute to buy essential items, like a winter coat, often results in overspending and limited choices. Planning ahead can prevent rushed purchases and unnecessary expenses.

Action Steps

Make a list of upcoming major expenses—utilities, significant purchases, etc.—and factor these into your monthly budget. Anticipate needs to avoid financial surprises.

Poor Quality Savings

Buying cheap, low-quality goods often leads to faster replacements and higher long-term costs. Saving money upfront can backfire if items don’t last.

Action Steps

Invest in quality products that offer durability and reliability. Avoid impulse buys on inexpensive but poorly made items, as they usually cost more over time.

Neglecting What You Have

Many expenses can be avoided by taking better care of possessions. For example, neglecting shoe maintenance or vehicle servicing leads to premature replacements and repairs.

Action Steps

Develop disciplined habits: follow care instructions for clothing, regularly waterproof shoes, maintain your car, and prioritize health check-ups to prevent costly problems.

Transforming Financial Habits

Starting September 20, a series of free financial literacy lectures will be held in Moscow libraries. Every two weeks on Wednesdays, experts from the Central Bank, economists, and finance bloggers will share practical advice on managing money effectively.

The first lecture, held at the N. A. Nekrasov Library, will cover why money often feels insufficient regardless of income, balancing expenses and savings, and strategies to avoid financial stress. Speakers include Mikhail Mamuta, Head of the Consumer Rights Protection Service at the Bank of Russia, and Vasily Solodkov, Director of the Banking Institute at the Higher School of Economics.

The program will continue through the year, offering tips on saving, investing, responsible borrowing, and understanding economic news. Tailored for audiences with varying financial knowledge, the full schedule is available on the project’s website.

Join us on September 20 at 7:00 PM, Moscow, Baumanskaya St., 58/25, Building 14, N. A. Nekrasov Central Library. Admission is free but seats are limited, so register in advance via the provided link.

Sign up for the lecture.

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