Want to start saving a lot of money right away? One of the questions that afflict millions of families is how to save money every month and spend less money, in order to have more economic resources to set aside for the future or to invest in other activities.
Many times we focus on raising the salary: it is a race for those who make more money from their work without thinking that you can earn a lot simpler with small measures that allow you to put aside several thousands of dollars each year.
If you are tired of always asking the same question, maybe it is good to start reviewing how you manage your personal finances and inaugurate the year with a new mentality and a more pragmatic approach, which will allow you to relax, set up a healthy relationship with your expenses and get to next January with a more smiling portfolio. Thus it is recommended to you that you sit down once a week to analyze what you have in the box, report any entry and set financial goals. “If you want your financial life better, you have to spend some time with your money”. Let us know now how to manage money.
Simple Tips To Manage Your Money
Have you ever asked your parents to explain how to run a house? For example, do you know how much do services like electricity, heating and water cost each month? And how much does it cost to keep a car, shop, pay rent or a mortgage? Remember that you also wax lyrical about these expenses, and if you’re going to live on your own you will be you in having to deal with. So you should know more or less how much they amount. Ask your parents to show you some bills and listen carefully as they explain how they set aside money to pay for them.
Better to spend more money on things that last over time, than a few on something you have to throw after some use. A speech that applies to everything from clothes to electronics, but above all to food, eating well also helps you in the future. You will spend less money to take care of your health.
Read a book on personal finance
Learning new strategies on personal finance, on how to save money and achieve the goals of your life, cannot do you good. Knowledge gives you the power to do everything in life, even to save money. It is possible to make those payments linked to the fixed expenses that we expect each month automatically so that we can devote our attention to the more flexible ones and avoid penalties for late payments.
Be specific in setting your goals and reach them with determination and discipline. In the long run, you could lose motivation in your savings strategy, so it is good to trace every little achievement and progress, in order to always be pushed to continue on the path. In case of holidays, car damage, and emergencies, you always need to set a goal.
Working more will help you understand the value of money and will take time out of making unnecessary purchases. But this strategy works only if you love the work you do. Social networks make you run into the profiles of people who lead luxurious lives that are not yours. Do not be tempted to imitate their standard of living to impress someone. Consider what your goals are and go straight to your way.
Track Your Expenses
Now that you have a clearer view of your revenue and expenditure streams, you can start building a budget. Budget is the first step to manage money effectively. Determine the amount you plan to spend each month, divide it into categories (food, transport costs, entertainment, but nothing too brainy) and challenge yourself trying to stay within the figure – a goal that you have set yourself. Moreover, cutting your expenses radically can be sustainable for a short time, and then it becomes annoying (and depressing).
Here are some other tips that can help you if you have a credit card.
• Write down your purchases and carefully compare your monthly statements to make sure that you’ve only been charged for the expenses you’ve actually made.
• Pay your bills immediately. If possible, make total payment.
• Be very careful when transmitting your credit card number and expiry date on the phone or online.
• Do not use a credit card to easily get cash. Cash advances are usually subject to interest rates.
• Never lend your credit card to anyone, not even a friend.
How You Spend?
Now that you’re a little more aware of how you handle your money, try to set yourself goals by choosing in advance how to spend them from now on. Then make a list of the things you’d really like to spend your money on, and I recommend, do it by imagining being very rich and not thinking about your real possibilities at the moment. This is very important because you often tend to throw away money in things that give instant gratification rather than keep them for what really matters to you, and the result is that you feel poor because you can never afford what you really dream of.
So take the habit of sitting down once a week to check and take a look at your bank balance, keep your attention focused on your budget, if necessary, review your list periodically as your priorities change and keep the focus on your relationship with money, perhaps by reading some interesting book about it. Instead of being embittered for the money, you do not have, why do not you learn to manage what you have? Perhaps to learn how to manage money, you are going to live on your own. But think, would you throw off a plane without knowing how to use the parachute? It is true that one could understand how it works while rushing to the ground, but it is much better to learn the basics of the use of the parachute before launching.