It happens to all of us that at the end of the month we have two cents in the bag and the worst thing is that we don’t know why it happens. This happens when there is a bad administration in the finances.
It doesn’t happen to you? When you count how much you earn and divide it between the days of the month, you will most likely think that the salary should be enough and at least a little left over when each fortnight ends, but that’s not the case.
This is due to the bad planning you have with your expenses and because you do not know how to manage yourself. It’s not your fault, it happens that administration is a habit that you were never taught.
However, it is important that you take the first step and begin to organize yourself, not only so that your wallet has something before the fortnight falls, but so that you can do more with that money.
It’s time! Read the following blog and you’ll learn some tips to organize your personal finances and make better use of your salary so you never run out.
Do what your parents taught you.
Do you remember that your mother and grandmother always had enough money? If your parents taught you from a very young age to save your Sundays, you will know that there is no more infallible method to organize the economy than saving.
For decades, parents and grandparents managed to manage their expenses well. They knew how to stretch money and control their expenses.
Take back those practices they had, which was not to spend much more than what went into the stock market. You know, saving is one of the best forms of financial management. Don’t put it aside and get started. Your parents will be proud, won’t they?
Eliminate your debts
I know! I know! I know! There are times in life when it is inevitable to get into debt, especially when those emergencies arrive for which you were not economically prepared and had to ask. Not bad, only now you must get rid of them, so that you do not pursue interests.
Part of good stewardship also has to do with the timely payment of debts, so consider part of your fortnightly or monthly budget, as the case may be, to pay your debts.
Include in your budget the payment of credit cards, if you do not, interest will grow and you will find yourself in a disastrous situation and your financial stability will stagger.
Surely you have an incredible memory, but better drag paper and pen and organize your payments, save receipts, check your account statement and remember in detail the transactions you made.
You can also develop a management methodology to avoid delays in payments and control cash flow, credit is not an inexhaustible source of resources, use them intelligently.
If possible place reminders of payment dates where you can see them on a daily basis and see how you get used to knowing your payment deadlines.
Scratch your debts as you go along, seeing your progress with payments will give you motivation.
Don’t blame anyone.
It’s very common for us to make everyone pay the price for maladministration, but the only one responsible for the situation you’re in is you and no one else.
Also, having negative behavior will not help you and it will be easier to give up. Let it serve as an experience to touch bottom and better take the positive side and do not repeat the same mistakes to improve your financial situation.
Prepare for emergencies
Even if it sounds very repetitive, you should be prepared for emergencies. There’s a parent who can get you a loan every time, but don’t trust yourself and better have an emergency fund.
Having a fund for emergencies will help you have a better administration, think that there is also money you can lose in emergencies.
The death of a loved one or illness are very heavy expenses and if they are not well managed, the loss of money can be very great.
Also, if you’re the head of a family, you should think about having responsibilities and you can’t just decide that you won’t go to work because your family depends on you, so you don’t want to resort to easy ways out to get money to solve an emergency.
The emergency fund works like this: it is calculated taking into account everything you need to live for three months and then cover your day-to-day expenses.
Don’t take risks and better prepare one, it’s part of having a good financial management. It’s better to be prepared. Don’t you think?
Control your income
Controlling your spending could give you a better picture of what comes in and what goes out of your income and you’ll make better decisions such as cuts in your daily budget, but without getting hurt.
Surely there are expenses that you make each month, such as gasoline in the car that even if made repeatedly can change, for example you can change the car for public transport or bicycle. Using the car less will help you have a better economy.
Controlling your income will also make it easier for you to save, you’ll see. There’s nothing like paper and pen to do the math and start managing.
Open a savings account
Having money under the mattress is fine, however, having a form of formal savings has better benefits, since it will prevent you from taking out the guardadito to pay for the batch or to buy with the lady who sells candy outside.
When you have your money in the bank, you almost magically avoid spending the leftovers, that is, those pesitos that if you had in your hand you would run out to buy something. In this way they will add themselves.
The advantages of having a savings account is that almost none of them charge you a commission for opening one and maintaining it, it is easy to open one and it has an annual return.
You also keep your money safe and you don’t run the risk of someone discovering your hiding place and stealing your money. It’s best if the bank keeps it for you.
To start saving you have to eliminate unnecessary expenses, stop buying things that are not useful and ordering items in your co-worker’s catalog.
If you’re wondering how you can’t afford it, here’s the answer.
Ideally, you should strive to form a culture of saving so that it is clear to everyone, that it is only about habits and discipline.
It’s not about depriving your family of everything, it’s about maintaining good management of family spending. Remember the example of your parents.
Find out more
Part of having a good administration is staying informed. Don’t worry! You don’t have to sacrifice a lot of time or money.
Learning about personal finances is much simpler than you think and there are government institutions that have informative material, courses and workshops at no cost. If you don’t have time you can also find some of the material from these institutions online.
The Condusef, for example, has educational programs throughout the year with topics related to financial services, savings and personal financial management.
You can also subscribe to our blog and download free information to continue learning how to manage your finances.
Invest the money
Part of all good financial management is growing some of the money that comes into the portfolio through an investment.
It’s one thing to have savings and another to plan a strategy with long-term investments in mind.
There are many options, from banking programs to starting a business, and all these forms of investment can be applied so that your money begins to generate a return.
Then there’s government action. Or why not look for a partner to start a business. Try to invest, just evaluate your options first and have a plan.