Earning more, but still not having enough money? We explain how to change this scenario

How to live comfortably and save money at the same time? This question worries almost everyone: salaries grow, bonuses increase, but there is still not enough money for savings, investments, or "unforeseen expenses." Kateryna Klyimova, a financier and founder of the Fin Easy agency, explains LIGA.net, how to "reprogram" your financial brain, build a stable safety net, and avoid impulsive spending.How much money do you really need per month and how to balance your budget with unstable income – read the full article with practical tools.Why expenses grow along with income and how to change itLifestyle inflation"When expenses automatically increase along with income, it's a well-known phenomenon," says Kateryna Klyimova, founder of Fin Easy.In simple terms, there is more money, but a person does not become richer."The reason for this phenomenon lies in psychology and financial habits. If people don't keep track of their finances and don't save money, they continue to live from paycheck to paycheck: as their income grows, they simply spend more," the expert explains."More expensive products, cosmetics, spontaneous purchases, taxis instead of public transport – money is spent here and now, not invested in the future," Klimova says, giving examples.The expert emphasizes that it is entirely possible to change this mechanism, and everything depends on financial discipline."The key habit is to pay yourself first. Set aside money immediately after receiving your income. Ideally, 20%, but if that's difficult, at least 5-10% is better than nothing," Klyimova explains.She recommends paying particular attention to income growth. For example, if you used to earn UAH 30,000 and saved 10% (UAH 3,000), and your salary increased to UAH 35,000, you don't necessarily have to spend the additional UAH 5,000 entirely. One way to avoid "lifestyle inflation" is the conditional 50/50 challenge: allocate half of the increase to savings or investments, and the other half to improving your quality of life. This approach allows you to feel financial progress while not denying yourself pleasant things.How to determine the amount for a comfortable lifeThe first step in financial literacy is to honestly calculate your basic expenses and real needs."We need to answer the question: how much money do I actually need per month to live normally? Not like my acquaintances, not like bloggers, but in a way that I don't feel constant restrictions," says Kateryna Klimova.Next, she recommends making a list of all mandatory expenses: housing (rent or mortgage), utilities, groceries, transportation, communication, medicine, loans or installments, and child-related expenses (kindergarten, school)."Restaurants and entertainment are not taken into account at this stage," the expert adds. "As a result, you get an amount that can be called a personal subsistence minimum. If your income already exceeds it, there is room for savings and comfortable spending."The very fact of having this amount is a discipline in itself. "If at the end of the month expenses significantly exceed the baseline, it's a signal that something went wrong. To understand exactly what, a second step is needed – recording expenses," the expert explains.The financial expert suggests recording all expenses for at least one month – daily or once a week. "Most people don't realize where their money goes, especially on small purchases. For example, 300 UAH for coffee or a snack every day is about 9,000 UAH per month, a significant part of the budget," says Klymova.After that, the expert advises dividing all expenses into two categories: mandatory and desirable/comfortable."The second category usually includes restaurants, gadgets, branded items, online purchases, paid entertainment, massages, and gyms. You don't have to give them up, but it's important to realize that they are not essential and can be adjusted if necessary," the expert explains.The third step is to determine your real "sufficient" monthly amount. "This is an amount that covers basic needs and justified desires, but does not include spontaneous purchases or expenses that are later regretted. It is the regular analysis of expenses that helps to see what can be saved without losing the quality of life," adds Klyimova.The expert emphasizes: "Life is not just about bills and savings; comfort and pleasant emotions are also important. But if your goal is financial freedom, it's worth keeping emotional purchases under control. When you have a clear list of expenses and a clear 'sufficient' amount, it's easier to ask yourself before each purchase: is this item more important than my financial goal or not?"How to cope with income fluctuationsAccording to the expert, this issue is particularly relevant for freelancers, people with seasonal incomes, shift workers, or those who receive a fixed salary with large bonuses once a quarter.The main mistake with unstable income is to live "to the fullest" in good months and drastically save in bad ones. The correct logic is the opposite: live on an average income.The First Rule of a Financier – determine the amount that is actually sufficient for living."This is the same amount we talked about earlier: basic plus comfortable expenses. For example, 30,000 UAH per month. This is the amount you should consider your 'fixed salary,' regardless of how much you earned this month," she explains.According to her, the correct use of income in different months looks like this:In a "fat" month, you receive UAH 60,000 – you spend UAH 30,000 on living expenses, and save the rest;In a slow month, you earned UAH 15,000 – you supplement this money from the reserve to the required UAH 30,000."This way, you train yourself to live at a stable level, not on financial 'seesaws.' This is the foundation of financial stability and reduces stress levels," Klimova emphasizes.The second rule. – creating a reserve fund or safety net. "For people with unstable incomes, this is not an option, but a necessity. The optimal size of the safety net is 3–6 months of expenses, and with unstable incomes, it's better to aim for the upper limit," the expert explains.The third rule. – technical balancing of the income and expenditure budget. Klimova advises separating accounts: "All income goes to one account, and a fixed amount for living expenses is transferred to another every month. As a result, you have a stable amount for expenses every month, regardless of income fluctuations. Everything above that becomes a financial reserve or resource for future investments."What is the minimum amount to start investing?As Kateryna Klyimova emphasizes, before any investment, it is necessary to form a financial safety cushion."This is a basic rule. It's about saving for 3-6 months of living expenses, and they should be kept in liquid instruments – cash, card, short-term deposit," the financier explains.According to her, investments are always a long-term endeavor: "Even in the most conservative instruments, such as government bonds, funds are usually frozen for at least 6 months. If you want to try investing while building up a financial cushion, you should start with very small amounts – about 1,000 UAH."The expert suggests starting with understandable instruments, such as domestic government bonds: "The platform shows the yield, terms, and final amount after taxes; it's convenient and transparent."Regarding shares of international companies, Klymova warns: "Although they often promise 'entry from $10,' in practice, the minimum start through reliable brokers is $100–200 plus commissions and transfer fees. This means you first need to accumulate these amounts."How to Control Impulsive SpendingImpulse buying is familiar to almost everyone, so the task is not to "fight with yourself," but to build a system that reduces temptations.The first rule is the "24-hour rule." "If a purchase isn't essential, don't make it right away. In a physical store, just leave and come back the next day. In an online store, add the item to your 'wishlist' and give yourself time to think. In most cases, this pause eliminates up to 80–90% of impulsive spending," the expert explains.The second is to "hide money from yourselves." "Splitting accounts and automatic savings tools reduce the temptation to overspend. Often, these accounts don't even show up on the main screen," she adds.Third, setting spending limits. "Many banks allow monthly limits on a card. When it runs out, you have to make a conscious decision about what to buy and what not to buy," says Klymova.Fourth, avoid loans and installment plans for impulsive purchases.Loans only make sense when the purchase actually generates income. Otherwise, an installment plan only deepens the financial trap, the expert warns.Fifth, a critical attitude towards promotions and marketing. "Discounts and promotions often create the illusion of a bargain. As a result, people buy more than they need. Every promotion should be carefully considered: if it's everyday goods, the discount might be justified. In other cases, it's a classic trigger for impulsive spending," Klimova explains.Common mistakes when living comfortably and accumulating capital at the same timeKateryna Klymova identifies three main mistakes:1. Lack of a reserve fund (safety cushion). "Many people start investing or buying assets, but they don't have 'liquid' money for unforeseen expenses. This leads to stress, loans, or selling assets at an unfavorable moment," the expert explains.2. Lack of a clear financial goal. "Without a specific goal, it's easy to lose focus. A clear financial goal helps you make a conscious choice between a spontaneous purchase today and a long-term plan," says Klimova. Examples of goals include: retiring at 50 with sufficient capital, buying real estate, or creating an asset that will ensure a comfortable life.3. Ignoring income growth to increase savings. "Many people keep their spending and saving proportions the same regardless of income growth. The right strategy is to consciously set aside a portion of the increase as income grows, without changing the basic comfortable standard of living," the expert explains.Read alsoFinancial hygiene: how to take control of your money in one hour and stop wasting it

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