Are your expenses more than your income? do you know how to organize a budget?
Those who spend more than they earn are bankrupt, those who spend less than their income (even if it is only a penny) are flourishing or, at least, can sleep peacefully because they have no financial problems. What's more, the money that two people receive can be the same and, nevertheless, it seems that it yields more to one than to the other. It all depends on how each one manages it.
In order for you to not only get it, but even have more money, you need to stick to a budget more or less. And for this one, which by the way is not one of the worst, although it is very important, you do not need to be a financial wizard. You just need good habits.
What should we do?
The first thing you have to do is the budget itself ... and not go overboard. For this you must have a clear picture of your income (your and / or your husband's salary, if you both work, or of any other family member who contributes to the house: withdrawals, property income, interest, dividends, etc. .) and essential expenses, which can be divided into
Fixed: rent or mortgage on your house, electricity, telephone, children's school, etc .
Occasional expenses: vacations, taxes, charities, etc.
Variables: food, electricity, telephone, gasoline, entertainment, etc., etc., etc.
Among the essential expenses we include both vacations and walks, because it is not about becoming misers, but, on the contrary, that you have enough money to indulge in whatever you want.
It is important to save the invoices and receipts, this will surely facilitate the work, because by reviewing them you will realize where the money has gone. It is also convenient that you indicate in each payment what you do the extraction for, especially when you withdraw cash: to buy the children's uniforms, Christmas gifts or that model that you saw in the window and that you want to quickly transfer to your closet . And get in the habit of checking your bank account status daily.
Although rare, computers, like humans, can make mistakes. With all these reports in hand, you only have to find a place to always keep them, for example, the receipts and payments for each month must be all together in a separate manila envelope and all these, in turn, in a drawer, portfolio or file .
A ledger is of great importance to keep your budget
Write your budget now, which can be as simple or as complicated as your life itself, dividing income, as we have already said, into fixed expenses (savings must be included in them), occasional and variable expenses, ensuring that you do not forget any ( then give you a scare) and even foreseeing a margin for the possible (almost inevitable) rise in inflation. In some cases, the projected figure may not exactly match the actual figure, but it should be as close as possible. Then add each column and finally the total of all three.
Before, below, or on the front page of the book, make a complete list of your entries. Be moderate when doing it and do not put more than the safe income, without getting excited about the increase that you expect, but that has not yet arrived, or that you will soon have other income that is not well defined. Then withdraw from the bank only the amount with which you will have to pay in cash what you cannot pay with cards or checks.
Also to have a better control of your budget you can keep a small notebook in your wallet, immediately recording expenses as they arise. This will not only give you an accurate idea of how your money is disappearing, but it will help you to control yourself, establish priorities and not be tempted the first time. The combination of writing your budget and a detailed expense book will allow you to easily balance for the month.
What can you do with the money you have left over?
Although your first goal is to live within your budget, if you do so and have included a savings in your fixed expenses, you will have money left over that, month after month, will accumulate.
Just as sometimes you have to summon the whole family, including your children, so that everyone tightens their belts and reduces their expenses, gather it now happily so that you can plan how you are going to dispose of that money, which should be allocated to three objectives.
The amount that you may need for some emergencies and that should be reserved only for this, kept, but easily available at any time, in a bank account at the usual interest.
Set your short-term goals: where you will spend your vacation, the purchase of an appliance, remodeling that you want to do to your house. This money can be put into an account or fund that could be withdrawn for a certain period of time (6 months or a year, for example), it produces a higher interest.
Congratulations! It is already in the investor plan! But do it wisely and with the appropriate advice. And let yourself dream of your own home ... with the careful education of your children ... with the trips that you will undertake when you retire and, not only on money, but also what is scarcer still: money weather. You see how your home can be a good business. Starting today, never let it leave a loss.
Some tips to level your budget
If your debts are more than 10% of your income, don't use your credit cards anymore until they are paid off.
Try to keep your long distance phone calls not too long.
Try not to eat at restaurants too often.
Set your priorities.
Make your comparisons wisely, give yourself time to reflect.
Try to save on electricity consumption.
Study the possibility of having a medical insurance that for a monthly payment takes care of everything related to health.
Main image source: https://www.incharge.org/financial-literacy/budgeting-saving/how-to-make-a-budget/
