If you have ever felt that your money is not performing as before, read on. This article is for you!
Surely you, like all human beings, already know how money is spent. But what you probably don’t know is that poor management of your economy can have negative consequences for the stability of your family. No matter your age or current situation, financial education is the best solution to prevent future headaches.
Regardless of how much you earn, if you manage to develop correct financial habits in your life, I am sure that your money will yield much more. If your economic maneuvers are not so advanced, do not worry, it is normal, since this subject is not taught in all families. The good news is that it is never too late to learn and in this article you will find four habits that can benefit your economy.
1. Make a budget
Budgeting is the first step to healthy finances. Your budget will reflect what you earn and what you spend month after month. The elements that you must include in the expenses area are:
Services: electricity, water, gas, cable TV, Internet, etc.
Loans and bank cards.
Necessary expenses: food and clothing.
Unnecessary expenses: travel and entertainment.
Ant expenses: they are small daily expenses that are apparently invisible but that, added, can represent a drain for your economy. For example, the change you give to the one who packs your things at the supermarket, parking payment, sweets.
Emergency fund: allocate part of your monthly income to an account that you will use in case of any mishap or emergency.
Broaden your perspective by reading: Four fundamental ideas for preparing a family budget
I recommend you use technology to facilitate the recording of your daily expenses. In this article you will find a couple of applications that will help you: 2 applications for your phone that will take care of your expenses
2. Today’s sacrifice is tomorrow’s gain
Surely sometime in your life you have had the intentions to start saving. But don’t be fooled, it is a fact that saving requires sacrifice and great willpower. You probably usually save the money you have left over from the month, and sometimes you don’t have anything left over, because it is difficult to have money in your wallet that you cannot spend.
The common way of saving is not working for you, however, here I have an alternative: pre-saving. Stop saving the money that you have left at the end of the month and better save it before you spend it. For example, if your salary is deposited in a bank account every fortnight, ask the bank to transfer 5 or 10% of your salary to a savings account. In this way it will be easier to save since the money was never in your wallet.
If you want other tips to save, you can read: 6 steps to save and not fail
3. Avoid unnecessary expenses
If you want to start having a solid financial situation, it is important that you find out what your unnecessary expenses are. For example, when you go to the supermarket you surely walk through the aisles and put different items in your cart. But stop for a moment, do you really need everything you’re buying? I recommend that you draw up a list of the products that you really need at home. In this way you will avoid spending your money on unnecessary consumption.
4. Don’t spend more than you earn
They are very simple mathematical laws: if you spend more than you earn, you will be in negative numbers. I suggest you stick 100% to the budget you are going to create, in this way you will avoid going into debt.
If you broke with this “golden rule” and you are already in debt, I recommend you read: A fuller life. Discover how to eliminate your debts.
It’s never too early or too late to start polishing your financial habits. Do not forget that it is in your hands to start managing your money intelligently, being proactive and organized.