6 Tips to Manage Your Personal Finances Well
Many times people fail to organize their personal finances, when this is as important as planning the work schedule or organizing a vacation.
Undoubtedly, the process of planning, ordering income and expenses, is usually a bit tedious if we are not aware that improving our money management will give us great rewards, such as saving a certain amount of money or determining the most important expenses we have each month.
1. Be aware and plan
It is essential that you understand the importance of properly managing your personal finances, becoming aware and deciding to plan is the first step for you to be motivated and begin to order the management of your money.
This is the only way you will be able to reach your proposed objectives and meet your goal month by month.
2. Prioritize expenses
Start with a prioritization of fixed expenses, these are usually related to food, housing and basic services, and so on.
Then evaluate if there are expenses that can be postponed and made later. This is the only way to know how much money you have committed and how much you can spend or save monthly.
3. Ongoing expenses
If you have already identified the fixed expenses you have every month, do not forget to include a budget for transportation, outings, coffee or meals away from home.
All of these are called ‘ant expenses’, which are small outflows of money that, if not controlled, can add up to a large amount of money.
Therefore, group all these expenses together and define a budget for them and remember! Do not exceed that limit. Your finances will thank you.
4. Saving costs
Saving is painful, remember that the concept of saving is to stop consuming today to do it tomorrow and that takes effort, dedication and perseverance not to fall into unnecessary expenses.
It is recommended that you can save 20% of your income. If you can not start with that amount, start with 10% of your income and increase the amount according to your possibilities, so every month you will see your extra money grow and you will be motivated.
5. Look for an extra income
If you make ends meet and you don’t have money to save, try looking for an extra income so you can complete your savings goals.
If you don’t have extra income, you can adjust your spending so that you have a little money set aside exclusively for savings. This is another key to good finances.
6. Watch your credit card use
Be careful when using credit cards, because having one doesn’t mean you can spend as much as you want. It is necessary to save for the payment at the end of the month to avoid falling into arrears.