The organization and control of our finances is an activity that can seem exhausting and confusing. The amount of time we have to invest to keep our income and expenses in order is often perceived as excessive.
However, there are many ways to better control our finances and make our work much more productive, without having to invest long hours studying the mechanisms of money.
Nor is it necessary to pay large amounts of money to an expert who is responsible for managing our pocket, to achieve a balance in our financial life.
All people, regardless of the level of our income and our expenses, we have the possibility to be more effective with respect to this.
The truth is that it is the small habits and structures of thought that we have in our day that make our finances out of control.
Next, we will share with you some ways to organize your money so that you can cover your expenses and also save for future goals.
Record your expenses
To start a process of organizing your finances, the first thing you should do is start recording all your expenses. This includes everything from the most important things like mortgage payments, debts or rents, to the simplest things like the coffees you buy from time to time.
Making an accurate initial record of everything you buy and pay for in the month will allow you to clearly know what types of things you spend your money on. In this way, you can discover what you are spending more money in order to reduce it.
Ideally, after doing this registration for a month, organize your expenses into categories and establish the final expenses of each.
Only by knowing exactly what you spend your income on, can you organize yourself better and build a budget.
Establish a budget
After you have understood how your monthly expenses are and what kind of things you spend most of your money on, you can make a budget.
Making a budget is one of the most popular tips when it comes to personal finances. With so many options available to use borrowed money and pay later, it is usually very tempting to spend without thinking too much about what you actually receive as income. For that reason, having a defined budget can be a sure way of not making mistakes and spending too much.
However, different surveys have shown that, for most people, having to follow a too strict budget in which you count every cup of coffee you buy can be very stressful.
Therefore, it is recommended that you build a general budget, in which you consider the categories that you established when you registered your expenses. In this way, you can establish an amount of money for each category, always ensuring that your expenses are less than your earnings.
It is always beneficial to take advantage of some easy and quick loans that can be obtained through different entities. But to ensure that you are able to repay those loans, it is important that you have a clear awareness of your expenses.
Consider saving as one of your fixed expenses every month
So you can build your future with stability and improve your financial habits, it is essential that you think about saving.
Savings should be an indisputable part of your fixed expenses. If you look at it as something non-negotiable, that you simply have to pay, like any debt or necessary purchase, it will be much easier for you to fulfill it every month.
It is not necessary that you have too much to keep as savings
Many experts recommend using 10 or 15% of your income as savings. Set a specific goal for which you want to save.
Another way to make savings much simpler and more attractive is to set a goal.
Find a specific goal for which you need to save. Identify if it is a short, medium or long term goal and make the necessary calculations to know how much you need to set aside your monthly budget to achieve that goal in the time proposed.
In this way, you will know exactly why it is so important that you save and at what moment you will see your crystallized objective. Of course, if you stay attached to the plan.
This type of goals could be from paying a short vacation, to collecting the money for the initial of a house.
You just have to choose something you need to build your future and make sure you do not touch the money you are saving, if it is not a true emergency.
Use technology to automate your processes
As much as we try to lighten the processes that are part of our personal finances, they are always more annoying than we expect.
Therefore, it is important that you learn to take advantage of advances in technology to make this part of your life much easier.
There are several apps that can be used to organize your expenses, make budgets and coordinate your savings
One of the best applications for budgeting is Mint Budgeting. The most interesting thing about it is that you can connect it to your bank accounts and the application uses the information it gets from there to create a custom budget.
In addition, the application sends alerts to the user whenever there are strange movements, and offers advice based on your expenses so you can save money. The interface is easy to use and with an attractive design, but simple.
You can also get applications that help you generate profits
One of the most popular is Acorns. This app is responsible for automatically extracting small amounts of money from your daily expenses and investing them.
You must connect the application to your bank accounts and it will carry out the task of taking these amounts of money to invest in a wide variety of actions and other types of simple investments.