How the attitude of a Russian woman to money changed after moving to the USA: personal experience
'27.10.2020'
Author of the channel "The ABC of an Immigrant" in Yandex.Zen talked about her attitude to money after moving to the United States.
1. Mandatory budgeting
Like many in Russia, I lived according to the principle “from paycheck to paycheck” and there was simply no need to maintain a budget. In the United States, such a need arose. Firstly, to keep track of your income and expenses, secondly, to plan further financial transactions, thirdly, (most importantly), keep records in order to deduct some business expenses when filing an income tax return (for example, if a person is self-employed, then he can deduct business expenses from the tax base: equipment, telephone, Internet, business trips, business dinners, etc.). As a result, thousands of people in the United States pay much less taxes than they could.
2. Smart use of credit cards
A credit card in the United States is fundamentally different from a credit card in Russia. If in Russia the card is used as a “quick loan” when there is no money of its own, then in the USA a credit card is a tool for confirming financial literacy. Most US purchases are made with a credit card. And it's not that people don't have their own money. This is the biggest misconception. The meaning of a credit card is that a person spends money on purchases, and then immediately returns it so that nothing is owed at the end of the month. This is how banks look at how people manage their expenses, and on the basis of this, their credit rating grows. The higher it is, the better financial offers await a US resident: from a more favorable rate for a mobile phone to a low interest on mortgages.
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The more actively you use your credit card and repay debts on time, the more bonuses banks offer: double cashback, discounts and bonuses. As a result, the return is less than the amount spent.
3. Changing attitudes towards loans
In Russia, I ran from loans like fire. In the United States, loans, like credit cards, are used not because of a lack of money, but as a mechanism for financial well-being. For example, even millionaires take out mortgages. Why? Because the mortgage interest is lower than the interest when buying securities or investing in large projects. Therefore, it is more profitable to pay a few percent on the mortgage, and earn 10% or more on the money invested.
4. Airbag formation
Every resident of the United States strives to have at least a year of savings in case of contingencies. An airbag is needed in any country. The difference is that in Russia it was not always possible to postpone something.
5. Pension is not a concern of the state, but a personal responsibility
If in Russia it is customary to rely on the state, then in America - only on yourself. In the United States, the state pension, as in Russia, is minimal and does not provide a decent standard of living. Then where do American retirees get money to travel around the world? The answer is simple. Americans have been saving for retirement from a young age by opening retirement accounts such as 401k or IRAs. Both the resident of the United States and his employer can transfer funds to these accounts.
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In short: spend less than you earn, save and manage your money wisely. These rules can apply in any country. But in the United States, they are probably mandatory. In America, pensioners do not blame the state for lacking something; rather, they blame themselves for not being able to do everything for their future. This is the mentality. This is the way of life. And if you live in this country, then you need to play by its rules.
Original column published on the blog. "The ABC of an Immigrant" in Yandex.Zen
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