Have A Monthly Budget
Following a PERSONAL BUDGET throughout the month is an excellent measure to promote our financial stability. Unfortunately, there are many factors that cause us to not meet the goal of following a budget. During the month, unexpected expenses, miscalculations, or perhaps we make the mistake of buying something we don’t need. However, we have the ability to control our financial situation.
Here are 3 easy ways to follow your personal budget.
1 – Identify your income, then identify your expenses
First identify your sources of income and how they may vary throughout the month. Consider first your fixed income and then other spontaneous income that may arise. As for expenses, pay attention to those that are fixed. Then look at the expenses that are variable. These last ones are the ones that bring you problems and for which you lose control over your money. In reality what you have to control are the emotions that lead you to spend unnecessarily.
Once you identify those emotions, you will not be prone to overspending. Unnecessary expenses reduce your purchasing power. If you become aware of all this, your financial behavior will improve significantly.
2 – Evaluate your expenses
Once you have identified your expenses, you must evaluate each one of them. Establish priorities to know what is most important to pay for. Then control your expenses during the whole month and keep all the receipts of your purchases. This will give you an accurate perspective on your expenses.
The most interesting thing is that you will discover that you do not lack money, but that you do not manage correctly the money you have. It is also important that you identify your spending trends.
First establish an average expense and then see how it varies during the month.
3 – Honesty
The most important thing when following your PERSONAL BUDGET is to be honest with yourself. Calculate your income accurately and do not include income that may not show up, for example, an old debt being paid off. As for expenses, don’t be afraid to know the exact amount of everything you spend.
That figure is extremely useful for you to know yourself with respect to money. The more honest you are with yourself, the better financial decisions you will make because they will be in tune with your personality.
A PERSONAL BUDGET must be built on a solid and realistic foundation that you can carry out wisely. Never set goals that are too difficult for you to follow.