Have you ever wondered where your money is going after payday?
Spending money is too easy, so easy that you lose control!
It is also very simple to save money … even if it is not something that happens overnight, we must work to change some habits.
Several steps can help you move towards financial success.
You do not have to be a mathematician to improve your personal finances.
Just sit back and take a moment to analyze your expenses and your income to create a budget.
For example, you can go back by browsing your bank statements or have an app categorize them for you.
Divide them into sections such as fast food, bank charges, bills, etc.
When you really look at what you spend and have dollar amounts for each item of expenditure, it will open your eyes.
After seeing where you spend your money, it will be nice to set a budget.
1. Define a budget and prioritize spending
To set a budget, you need to compare how much you spend and how much you actually earn.
Put money aside to take care of yourself and your well-being first.
This will include expenses such as your bills (food, utilities, rent) but also put money aside in a life insurance or other investment vehicle.
Once you’ve put money aside for your well-being, your financing fund and your savings, you need to make sure that you think about your debt ratio.
Examine all you owe to everyone and how much time and money you will need to repay them.
The majority of these expenses will be expenses related to your credit card but also other things like student / bank loans.
The sooner you get rid of these debts, the better it will be for your bank account.
2. Be careful not to spend without thinking
Not having a plan (or forecast) of expenses is one of the most common mistakes made and one of the reasons most of us commit many other financial mistakes.
Not knowing where you are financially means that you will end up spending more than you can afford.
Pay attention also to impulsive purchases.
Spending money on impulse purchases can drain a lot of money out of your wallet.
Make a list before shopping and stick to it.
3. Check your receipts and open your bills!
When you use your credit card, debit card or even cash and do not check receipts, you may lose your own money.
If you do not check the prices of items you have purchased, you may be overcharged for items such as those that should be on sale but are priced differently.
When your mail arrives and you leave your bills unopened for days or weeks, you can lose money in two ways.
First, the missing due dates mean that you will be spending on late fees and interest charges.
Secondly, your billing statement may be inaccurate and if you do not review the information you will never know if you are spending more than you should.
4. Pay attention to bank charges
Banks have made many changes and if you have been a loyal customer for years, you may have become so complacent that you do not know how much you pay in management fees or how much your bank actually costs you.
You should regularly strive to see what the competition offers.
You may find a bank more efficient for you and your money, which will cost you less in management fees and other fees, or which will offer a higher rate of savings interest.
It’s not a bad idea to use credit cards, but only if you do it right.
Everything you spend on your credit card each month should be fully refunded at the end of the billing cycle.
This will ensure that you do not pay any additional interest charges or late fees for the balances reported.
Put only on credit what you actually have in cash to save the costs.
5. Have financial goals!
Your financial goals give you steps to follow.
These goals should be access to property, starting your own business, retirement.
If you do not set specific goals, you will fail.
You can never get to the point where you have a down payment, except for your house, or you are in a good position when you retire.
Take the time to set solid financial goals and review them each year.
Attention to insurance.
Many people choose to live without insurance to save money. However, your insurance is your safety net.
She is here to protect you from bankruptcy and make sure you have everything you need.
You need to make sure that you have basic insurance coverage, including health insurance, to protect yourself from future problems.
6. Finally do not make financial choices by pressure!
Another common mistake is making a financial choice when you are afraid or you feel a lot of pressure to act immediately.
When you are scared, you may not consider all the options and you may be wrong.
It is important to step back and consider all your options.
You may want to discuss the decision with someone you trust.
Another financial mistake is giving in to the pressures to make a big financial step forward, from buying a new car to buying a house through marriage to having a child.
You can not be ready for these steps and giving in to the pressure will not bring you any financial benefit.
It’s ok to make every financial decision based on your timing, goals and needs.
Finally, managing your personal finances is a combination of several attitudes.
First of all, you must be careful and keep a wary eye on your expenses.
Also, you must be rigorous and not spend unnecessarily or without thinking.
Finally, you will need to plan and have well-defined financial goals.
