If you want to put your finances in order you need to learn to use them wisely.
This rule applies to both large company funds and individual finances. Therefore, not only businessmen but also ordinary people should manage their personal income and expenses correctly.
#1 Carefully Manage Your Budget
Plan your income and expenses every month. Divide all costs in the three main groups. The first category will include mandatory expenses: monthly rent and utilities, regular transportation and communication costs, and so on. In the second group, enter the semi-obligatory costs.
You can adjust their size depending on your current needs. This category will include expenditures on clothing, food, household chemicals, etc. In the third group, make other expenses. This category will include costs, the rejection of which will not particularly affect the quality of life.
#2 Control Your Plan
Review your budget several times a month, analyze revenues and expenditures. If you do not meet the limits, adjust your plan. There are also cases when your salary is withheld and your budget cannot be planned properly. In this case, you can get a $2000 loan from PayDay Say, it’s very convenient when you need a certain amount immediately.
#3 Don’t Spend More Than You Earn
You need to give up consumer loans and borrow money from friends. Learn to spend enough money. In any case, the income must exceed the expenses. Even if the difference is small. If the income is less than the expenses, be sure to work with the budget again, balance it.
#4 Don’t Make Spontaneous Expenses
Set certain limits on spontaneous purchases depending on your capabilities. Don’t spend money on unplanned things that you saw somewhere and you want to buy. Postpone such a purchase for at least the next day and think about what you refuse from due to this purchase.
#5 Save
Set aside at least 10% of your income each month. Everyone, no matter what their income level can save 10% and it will not significantly affect their lifestyle. Divide your savings into three groups. The first fund will be a reserve for unforeseen expenses: treatment, urgent purchase, temporary loss of income, etc. If you take a certain amount from it, try to restore the stock as soon as possible.
Have funds in this fund for 1-6 months of your needs. The second fund will be a pension. Invest in the money you have in it and do not start spending it before the age at which you decide to “retire”.
#6 Focus on One Financial Goal
As a rule, people often have several financial goals at the same time.
Suffice it to say that this mission is impossible and very discouraging! Instead, try to put all your energy into 1 goal at a time.
If the goal is to pay off debt, then just focus on trying to reduce your debt.
If you are saving for the purchase of real estate, then invest all your energy to save as much as possible on this purchase.
Due to this technique you will gain self-confidence, because you will see that you are really moving towards the goal you have set for yourself.
After you reach this first goal, continue your movement and move on to the next.
#7 Keep One Bank Account
If you want to easily control your finances, it’s best to have 1 single current account, 1 single savings account and 1 single retirement savings plan.
#8 Joint Budget
If you are married or in a civil partnership, it is better to have one bank account.
If you have one “financial life” it is a winning decision every time. Do not rush to create a unique account with a set of financial goals. In addition, bank fees will be halved!
#9 Cancel all Your Credit Cards
First of all, there is less risk of identity theft and fraud of all kinds. But this is not the only advantage. You also have fewer bank management accounts with questionable practices, fewer bank fees to pay, and fewer management papers. It is best to place only one debit card and pay as much cash as possible.
#10 Make a Payment Schedule
If you can’t pay all your bills on the same day, make a calendar dedicated to your bills. This allows you to know exactly when you will have to pay the bills. And if you use calendar software on your computer, you can even add automatic reminders to never miss a month. So, there will be no penalty for late payment!
#11 Note Your Every Expense
It is very important to keep track of your every expense to know what you spend your money on. You can write them in a small notebook, which you always keep with you or use the app
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