When it comes to taking care of our personal finances, there are many options available to get money instantly. One of them is payroll advances that can help you get out of trouble in the short term. In this article we will teach you how to manage money and everything you need to know to manage your personal budget.
Do you feel like you spend more than you should? Many times we do not identify well where the money is going and this seriously affects our ability to save . It is for this reason that having a monthly budget is key if you want to achieve your goals and achieve the financial stability you need. Follow these tips to manage money and budget according to your projects.
7 Tips for Managing Money
Here are 7 tips to manage money in an easy and practical way, with tasks in which the whole family can collaborate.
Write down your fixed expenses
We know that there are expenses that we cannot avoid, such as paying rent , basic services and even taxes. However, do you know how much these amounts are each month? It is important that you make an estimate of your fixed expenses to know what portion of your income you should allocate to cover these needs.
Sometimes we are not aware that our fixed expenses can be high. Identifying them can help us to know if we are hiring the cheapest services or if we are really taking this figure into account when making an unexpected purchase. Today there are applications such as Fintonic, which facilitate this task and help you categorize your expenses.
Design a Monthly Personal Budget
Okay, we know we can't sneak out of fixed expenses at the beginning of the month, but what about variable expenses? We talk about those occasional expenses that end up weighing heavily on our finances at the end of the month , such as leisure, transportation, shopping, etc.
The healthiest thing for your pocket is to design a monthly personal budget, where you set limits for each category. For example, you can spend 40 us dollars a month on shopping for clothes, leisure, or going out with your friends. The idea is that you keep in mind that there is a limit, and that, even if you have money available in your account, your savings will never grow if you do not respect the budget.
This helps us avoid falling into the illusion at the beginning of the month, when you think you can afford to make certain expenses and at the end of the month you find yourself in trouble or an emergency arises and you need to go to the figure of an immediate loan .
Amortize all your Debts
If you have recently applied for financing it is important that you allocate part of your income to pay it off in less time. This way you can reduce the interest payment and the time you remain in debt. This does not mean that you must live to the minimum to get out of your debts as soon as possible, but that you take advantage of one- off or extraordinary income to mitigate debts.
Set aside a percentage of your salary for the Investment
Saving our salary is fine, but if we want to manage money to increase our well-being, it is best to think about generating more wealth from an investment.
Many experts recommend allocating 10% of the monthly salary to some type of long-term project, such as a savings account that provides minimal returns, or the purchase of shares that can be a riskier option, but with higher returns.
If you are interested in the topic of investing, consult our article on different options to invest money to multiply your savings.
Your savings are sacred!
Of course, one of the keys to managing your money properly is not touching your savings unless it is an emergency. For this, you can deposit your money in a savings account where you cannot withdraw the money for a certain time. In this way it is as if you were not counting on that amount.
You can also store it in a compartment that you have out of your sight, to avoid resorting to it in superfluous expenses. This sounds a bit trite, but remember that having savings means having peace of mind in the long term, the possibility of dealing with emergencies and the certainty that you can make ends meet without major problems.
Avoid compulsive purchases and look for the Best Prices
This is perhaps one of the most difficult steps in building our financial discipline. When we are in distress it is much easier to restrict ourselves because we know that we are at risk of falling into the red. However, the real challenge begins when you have some savings and feel like you can afford one purchase a week, which ends up turning into daily purchases.
We fall into the delusion of being able to spend just to have some money saved. Even if your balance does not reach zero, your savings will disappear little by little and your expenses will have exceeded your monthly budget by much. Also, do not stay with the first impression of a product; Do your research, as you will likely get it for a better price at another store or even online.
One of the best solutions to combat compulsive shopping and manage money is to write everything you want to buy on a list and wait 30 days. Once this period is over, reread the list and ask yourself if you still think you need all that you wrote. So you can identify what was a whim and what was not.
Don't go out with a lot of cash
There are those who claim that having cash makes it more difficult to spend it, but there are other people who claim that they cannot resist the temptation to buy something. The best thing is that you carry only the right money that you need during that day to avoid unnecessary expenses.
Today there are many payment facilities, so many that you no longer even need to carry your cards because you can pay from your mobile . Being so easy and practical to buy, it is important to develop self-control and always remember our financial goals and the reason for these efforts to manage money.