Do you know what you spend your money on? Do you know what your biggest costs are? How much is left in your account at the end of the month? Do you usually pay bills with a fine? If you answered no to at least one question, then it is time to control your personal finances. Especially because the country’s economic moment does not allow unnecessary spending.
Checking your bank statement once a week does not mean that you are controlling your finances. It just shows that you know how much balance is available.
Personal finances should indicate to you how your spending is organized on housing, food, leisure etc. and how you move your money do you save? Do you have an emergency reserve?
We have prepared four tips for getting your personal finances up to date and having full control of your money. Keep up!
Plan all monthly expenses to track personal finances
In this step, enter the basic bills, such as electricity, telephone, internet, mobile, rent, condominium, health plan and supermarket. They should be noted so that you have control of the minimum you need to keep up. Be sure to tag costs for subscriptions to newspapers, magazines, and internet services such as Netflix and Spotify.
Then take a look at the past few months of what you spent on leisure – restaurants, bars, movies, etc., and shopping, including the credit card. See if there are fixed spending on medicines as well.
With this data, you will know exactly how much you spend per month with the due dates.
Be careful with the bills
If you buy in installments, maybe it’s time to take a break. The installments stimulate the purchase, after all, they will fit your budget. The problem is that with the installment payment we tend to buy more without realizing that we are accumulating long-term debt – even if they are small.
Let to buy sight. Better to save the installments and pay at once for the product you want, this is good for personal finances.
And if you have already paid in installments, either on the ticket or credit card, do not forget to pay. Fines and interest will eat much of your budget.
Cultivate good financial habits
Do you know how much you spent on coffee last week? And in the month? These small expenses go unnoticed during the day, but if added at the end of the year, they will reveal a value that can even scare.
So make a note of these small expenses, these small purchases we make daily. A coffee, a chocolate, a magazine, all added up will help control your personal finances. If you’re exaggerating, you’ll be able to control yourself, but that’s only possible if you know what you spend on.
Invest for safety
In your planning, set aside a portion of your income to invest. Of that installment, a percentage should go to an investment that can be easily redeemed. It will be your emergency reserve.
Another part goes to a long-term investment that allows bolder plans – such as buying a property, changing a car, securing children’s college, increasing retirement.
Use tools to track your finances
Plan spending, set aside money for investments, keep track of bills, take notes on purchases, all need to be done in an organized manner so that you don’t get lost in papers, numerous spreadsheets and bank statements.
The best way to organize and control your finances using MoneyGuard application that does all the accounts automatically and helps you to see where your money is going. The app even allows you to plan by type of expense, which helps you keep track of your finances.
Ready to start tracking your personal finances? Have any questions on how to do monthly planning? Comment!