If it is difficult for you to make ends meet, if your account runs out of funds very quickly, it will be good for you to learn a little financial organization so that you can spend the whole month with money and without worries. But being organized with money does not imply making a budget and sticking to it, it goes further. From Money Investors, we are going to explain how to be more organized with money in order to balance your finances.
Steps to follow:
1.. Every month you have to face some payments (electricity, water, telephone, the neighborhood community, car insurance, etc.) so in order not to go crazy with all the bills, the first thing we have to do is domicile all the bills into an account and pay them automatically on the same day of each month. This way we will make sure to pay the invoices on time and we will save fines or penalties for delays.
2. Another very important aspect is to have your bank accounts organized. If we have accounts in different banks we can try to group them all in the same entity, which for example will save us commissions when transferring money from one account to another. We will also save time when making arrangements. If you have accounts that you don’t use, close them. You have to pay some maintenance costs, so you will save them and have your money much more organized.
3. If you want to save, record your day-to-day expenses. At first, writing down all your expenses, from going for bread to grocery shopping for the week, can be a bit tiresome, but little by little you will get used to it. You should also note if you pay in cash or with a card.
4. After a few weeks of writing down expenses – a month is a good time – you can divide them into categories. One can be household expenses, another food, leisure, clothing, household bills, etc. Within each category, you can differentiate between payments made in cash and those made by credit card. Month by month you can compare your expenses in each category and know what you spend the most on.
5. Once the expenses have been analyzed, you can study if you are more interested in using cash or cards, know when the most important receipts will arrive and adjust other expenses, such as those in the leisure category, so as not to unbalance your accounts. Little by little you will discover what you spend the most on, but if you start planning your expenses you will balance them and start saving.
6. Periodically review your expenses. Keep receipts, credit card payment receipts, etc., and from time to time check that there have been no errors when collecting them. If you save the receipts you can always claim an error or a charge that should not have been made. It is very important to control the payments we make.
7. If you invest, you must learn to assess the risk of each investment. It is not the same to have a fixed term as a fund or a pension plan, at all times we must know where it is best for us to put our money. To better manage finances we can inform ourselves. This way we will avoid buying higher or selling lower.
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