One of the most important things you can do to organize your finances is to have a system. There are many different ways to organize your finances; let’s discuss some important ones.
Control: personal budget proposal
The first step in organizing your finances is to estimate your potential income and expenses for the upcoming periods, identifying all cash inflows (wage, benefits, extras, etc.) as well as the cash outflows (rent, financing for a home or car, market, health, electricity, water, gas, internet, and telephone, among other expenses that will be incurred, as well as the sums already paid in installments on the credit card). The recommendation is to do a retrospective of the prior months to see how much was spent on average, so you will know roughly how much you will spend in each group if you are having trouble analysing spending in each category.
Have spending goals: Where am I going?
Beginning with an analysis of your revenue can help you determine just how much money you have to spend. After listing all potential costs, choose what should be paid first and how. Some payments can be paid in installments, allowing you to reduce resource expenditures and take advantage of the chance to pay other bills on time. Your objective will be to stay within your budget; if you go over that amount, disaster will ensue.
Unplanned spending: wills or villains?
It’s typical to see commercials for different promotions, with the most alluring ones designed to persuade the buyer to purchase that product. But should you actually buy it if it’s not in your plans? Definitely not. Before you consume anything from now on, you’ll check your budget to see if you can pay for it with additional expenses. Even the urge to have a BBQ with friends on the weekend needs to be carefully examined. To avoid turning that moment of ecstasy into a pain when the bill comes, the advice in this situation is to set aside money to satisfy these appetites while keeping everything within the monthly budget.
Change consumption habits
Expenses must be adjusted to the family’s financial situation. When the value of the outputs is greater than the value of the inputs, adjustments need to be made. The first step is to determine which category of costs may be cut. When shopping at the supermarket, it’s best to compare prices, take advantage of sales, and refrain from making impulse purchases—after all, we’re trying to cut costs—and to negotiate the price by asking for discounts and paying in installments if possible. Nowadays, there are banks and digital wallets that offer discounts in exchange for installment payments and/or cash payments. Another option is to pay off unnecessary obligations, such as the gym membership you pay for but never use (instead, continue working out outside,
I can’t reduce expenses, do I have another solution?
Yea! Consider raising the inputs if you are unable to minimize the outputs. We can now determine what items you still have at home, including bicycles, appliances, or clothing you no longer use, and which, when sold, may be used to cover these costs at the start of the year. Another recommendation for individuals who drive to work is to provide a lift to friends in exchange for a donation. Why not produce snacks and/or desserts to sell and earn additional money if you have culinary skills?
You won’t be startled if you’re organized, but it’s crucial to adjust your financial realities to account for family spending. You may rapidly begin planning your investments once you have the objectives outlined in the standards, but that is a topic for another discussion.