Lack of money – insufficient income or poor planning?
Faced with situations such as lack of money before paycheck or the inability to afford to buy the necessary thing, many do not think that the reason for this is not low incomes, but on the contrary – rash spending. So, now is the time to sit down to analyze the family budget and find out where your money flows so quickly, and put your home finances in order.
So how do you plan them – home finances?
To begin with, take a regular notebook and write down in it in one column all the income of your family over the past month, and accordingly in the other – all expenses. So clearly you can see what you spent your money on. Of course, it is difficult to draw any final conclusion from the records of one month. But even they can impress when you see how much money was spent on all sorts of unnecessary things, just “nowhere”.
And that’s just for one month. And in a year or two? It will turn out to be quite an impressive amount. And this is a good catalyst to move further along the intended path. Sort your monthly costs according to their urgency and importance. For example, necessary expenses (rent, groceries, car maintenance), non-urgent (savings, investments) and others (various things that are not necessary). When making a family budget for the next month, you can clearly see which expenses can be saved, and which can be eliminated altogether.
At first, it is morally difficult to constantly count expenses, follow the rules, and refuse the so-called other expenses. Therefore, do not carry a credit card with you – it is more difficult to part with cash. Before you go to the store, think carefully about what you need to buy and make a list. Only bring cash with you for these purchases so that you won’t be tempted to buy things that aren’t on this list. By following these rules, you yourself will be pleasantly surprised how much you were able to save in a month.
Financial freedom – is it possible?
When you brought your expenses in line with income and saw that the correct management of the family budget led to real savings, and there was free cash, then it was time to think about how to achieve financial freedom and succeed. A well-formulated financial goal and awareness of its priority motivates and inspires. Just don’t set tasks that you can’t accomplish. Your goal must be realistic, have a specific deadline and depend only on you. Think about how you want to live in a year, five years, or ten. Constantly remind yourself why you are doing this, and do not deviate from the goal.
After analyzing data on expenses and income for two or three months, and setting a specific financial goal, you need to move on to planning and optimizing your home finances. As a result of proper management of the family budget, you have free money.
Place them in a deposit account. This will save you from the opportunity to spend them, and after a while the accumulated amount will become start-up capital for starting your personal business or investment – it already depends on what goals you have set. You will have the opportunity to create a family reserve fund, a kind of financial rear, which will give confidence in a quiet time and solve problems in a crisis.
Proper accounting and planning of household finances will help you not only avoid “black holes” in the budget, but also lead to financial freedom. The main thing is that you have a clear and clear understanding of the need to put your home finances in order.
Tagged with: Personal Finance
