Many times we forget the rigor with which we treat our business when it’s the personal finance, we spend most of what we produce and unimportant things and spend our lives working to pay off debts. If you want to improve your personal finances heed the advice that we present here.
Money and Emotions
First it is important that you observe what your relationship with money is, if you feel comfortable with what you spend or the way you use your money, if you spend on what you need or you do to impress others by insecurity. In this way you can be honest about the fact that you have a problem.
If you determine there is a problem in your relationship with money, you must act immediately and to understand that the number one rule of the health of personal finance is that we cannot live beyond our means or what is the same, do not waste more of what we earn.
7 Keys to control personal finances
- Make an assessment of your assets. For this you must calculate the value of all the assets and subtract all your debts, so we can diagnose the extent of your financial problem.
- Identify your spending habits. Make a list of all the expenses you had this month, leaving none out, no matter how small. This is very useful technique to determine how the money is spent.
- Get organized. After having the balance of your finances and identify the costs, it will be necessary that you elaborate a budget which is assigned a percentage for costs required, one to pay debts, the other to save and another to enjoy.
- Be realistic. When preparing your budget you must assign the percentage that you will destine to every expense, taking into account the information you got from your balance and your expenses. At this point you should think about what is most important in classifying the use of money.
- Save. If you still do not acquire the habit of saving, start now. A good way is using those small daily expenses that are unnecessary or excessive. Rather than buy more coffee a day, a soft drink, juice, snack, take that money and save it.
- Take advantage of the windfall. In addition to saving the percentage that you destined of your income, any extra income you receive as payment of debts, bonds, overtime and other, Save it.
- Check the use of your credit cards. Remember that they are for incidentals and not to use them on a daily basis, especially if you do not have a large income to cover the debt without fall behind in payments.
Then you deduce your expenses of your income and keep all annotated with a monthly check, you will see how you pays more money by making better use of this and improve your personal finance.