Personal finances consist of being aware about all the transactions done with your money in a certain span of time. Do you know much you spend on those morning coffees and snacks? or which are your fixed expenses you must pay monthly? Taking care of personal finances means managing the money from getting your paycheck to planning what you are going to do with it.
Being able to spend less than you make may sound hard depending on your current situation but to start taking care of your finances weekly will help in the future and will give you financial freedom. Here we share some ideas to help you schedule and monitor your finances and how to take care of your money:
Keep track of your income and expenses.
Having a better understanding of where your money goes is important. If you don’t track it, you don’t know where it is spent.
There are many ways to track personal expenses these days, from the excel sheet, to writing it down on your agenda or notes app, even many apps for tracking are available on the app store. Choose the one you like the most and fits your tracking necessities.
Identify your recurrent expenses.
Things like rent, cellphone or utility bill require to be paid monthly. Even if you receive money every week or two weeks, think about separating the utilities money throughout each paycheck you receive in a month, so when the due date comes you already have the money ready.
Make a budget.
Think about the areas where you mainly pay out money and what it brings you. This way you will be able to identify what expenses are required for your job or other necessities, and where you could spend less, as on night outs, ordering food or shopping.
Use credit cards wisely.
Credit cards help you build a credit record and if you understand how cutoff date and payment dates work, they can become an ally on the personal finances. But also, they have fees that involve paying interests so watch out your payments on the credit card and that you can pay it off each month. If not, check out where your money is going.
Having a better image on how your personal finance is today is the first step, every month is different but being consistent and keeping in mind your goals will help.
Follow our social media to stay updated about new ideas or tools for your personal and business finances