Most of the time personal finances could be a big headache because the expenses come and go day by day and we can’t get to the end of the month with what we earn from our work. If you want to properly manage your money, you must keep this in mind: What you earn nowadays for your work is enough?
In this sense it‘s important for you to know that most of the people in from any occupation have the feeling that their income is not enough to fully cover their main needs.
This is why is essential that every person learn how to manage their income in a correctly way. To avoid unpleasant surprises when you finish the month with no money to spend, it’s important that you learn how to prepare a monthly budget. Now we are going to show you some points that you must take into account in order to have enough money to cover your needs in this time.
1. MAKE A BUDGET: It is important for you to have defined what the urgent expenses that you have to do each month are. For example, of your monthly income:
50% Family and personal expenses
30% Debt and commitment payments
15% Savings
5% Fun
As you lower your debts, you can increase your family expenses, savings and fun, but first you must have a good financial balance.
2. WRITE DOWN ALL YOUR EXPENSES: Start to manage a small agenda where you write down your expenses. There you will realize how you are spending the money. Sometimes a simple ice cream or snack at mid-morning may seem insignificant in a day, but monthly is very significant. Talking about accounts, buy a daily candy that costs 3 $ in a month of 30 days is 90 $ so you spend and in one year 1095 $ that you could have in your savings account.
3. AVOID CREDIT CARDS: As much as possible you should keep them very far from you. Having plastic money will hurt you so much when you don’t know how to manage it.
Try to pay at the end of the month all your debts and avoid the minimum payment because this will make you unable to finish the debts soon, because of the interest that you will eventually have to pay. Credit cards give you a false sense of security, so it is preferable to use debit cards because you will have real control of your expenses.
Remember, money you lend is money that you will repay with interest. Keep in mind that banks have a business through this system; they do not give you a line of credit because you are a good person, they do it because they make a profit through you.
4. SAVE: Learn to save between 10% and 20% of your monthly income so you can generate a small fund for yourself and your family. It is better that you deposit your savings into fixed-term accounts, which will give you an interest progressively. Also you have the option of placing part of your savings in mutual funds but before you know well so do not have unpleasant surprises, it is better to use only a percentage of your savings for this type of action.
5. HAVE A HEALTH INSURANCE: It’s better to pay a good insurance that covers any eventuality to end up having a lot of debts. Buy a good family insurance plan and use the services available, such as dental services, eye doctor, general checkups, etc.
6. GENERATE SOME EXTRA MONEY: If you need some money try to make some additional income that may be useful. Maybe you have a certain skill that can generate income, such as teaching courses, selling crafts, selling items to your friends, etc.
7. AVOID SURFACE EXPENSES: Learn how to differentiate what is truly important to you. So many people are indebted to unnecessary expenses such as jewelry, travel, pleasure, expensive clothes, etc. without having the purchasing power to pay them. As your finances improve, you can progressively give yourself some whims, but in the meantime, don’t do it, spend depending on your budget.
8. IF YOU ARE GOING TO ASK FOR A LOAN, DO IT FOR SOMETHING USEFUL: The loans can serve you to project and overcome you, for example, a credit to study a course that gives you greater jobs opportunities, for a business, to buy a house and stop rent, and so many others. Those are expenses based and that will allow you to improve your quality of life, therefore, do not discard them, but learn to be respectful with them.
9. EVALUATE YOUR BUYS: When you go to buy take advantage of shopping center offers, invest in things that can last you a lot, for example, if you are going to buy clothes, invest in some good quality garment that will really last you, it shouldn’t be an expensive product, there are very good products but not of well-known brands, that can serve you a lot and above all, they will last you.
Thanks for your attention.
IMPORTANCIA DE LA RESPONSABILIDAD