Setting a budget and sticking to it is not always an easy task. But there is no question of panicking either, because it is perfectly possible to ensure good management of your budget, provided you set limits and follow certain rules. Here are 9 tips to better manage your money.
Managing your budget on a monthly basis is essential to better see expenses and income, including those in your bank account. It is indeed preferable to leave on the basis of monthly payments, because most working people receive their salaries at the end of the month. It is therefore logical that the expenses are also monthly, especially since this allows you to have a simpler idea of the budget for each month. Bills can naturally be reimbursed in monthly installments: insurance, electricity bills, taxes… It is essential to know how to find your way around your accounts, this will help you manage everything properly.
Along the same lines as the previous advice, consider making a list of your systematic expenses each month. In accounting terms, we are talking here about fixed costs and variable costs. This will allow you to balance money out and money in. Obviously it won’t always be the same expenses every month, but at least you’ll have some idea of how much money you’ll have to pay. This will also prevent you from experiencing a difficult end of the month. Thus, you will define beforehand the sum necessary for the provisions, for the transport costs, for the possible school fees of your children… And do not forget to reserve a sum for the unforeseen.
Whenever you receive money, remember to put some aside. If you want to save, it will help you a lot, although you only save a small amount. Your piggy bank will grow little by little and in the long run, you will be able to build up a significant amount of capital. From the beginning of the month, place money or pay it into your bank account by automatic transfer.
If your end of the month is sometimes rough, it is recommended that you seek help from a professional, such as a financial advisor. Budget management can in some cases be complicated, especially if you are used to spending lavishly, when you do not have enough means. The opinion and guidelines of a finance coach can help you regain control of your finances.
Currently, it has become easier to keep an eye on a bank account. You no longer have to wait until the end of the month to receive it from the bank branch in order to do your accounts. For a good management of your budget, check your expenses regularly. This will allow you to realize the amount you consume on a daily basis and to check if certain sums seem suspicious to you. By monitoring your accounts every day, you will no longer have the same approach to your expenses. In addition, when the end of the month approaches, you will be able to know how much money you have left and act accordingly, in order to hold on without difficulty until the end of the month.
When you plan to make purchases, get only the bare necessities. Make a list of what you need beforehand and stick to it. Don’t let yourself be tempted by other acquisitions, especially if your finances are tight. In addition, think about limiting your consumption of energy, hot water, electricity… This will reduce your bills and thus, you will be able to free up money to cover other more useful expenses.
If possible, do not take credit. Take the time to think before deciding to take out a loan, and above all avoid consumer credit, even if it is to buy a vehicle. A car is costly, you will have to maintain it, pay for fuel, engine oils… If this is really unavoidable, wait until you have the sufficient budget to pay for it. The only eligible credit is probably for your main residence. If you choose to apply for a home loan, you must carefully assess your financial situation, as this of course has an impact on your future. Your loan must still allow you to save.
To better manage your current expenses, you will need to have a deposit account. However, do not leave it overdrawn or in a debit balance. Always keep a certain amount of money there to cover the agios and any other costs. When opening this type of account, however, remember to stay informed of its real position, while taking into account your future expenses and all the operations in progress that the banks have not yet taken into consideration.
When you’re in a relationship, it’s best to keep three accounts, but it all depends on how you manage your finances together. But ideally, it is advisable to have each his account: the first two will be individual accounts while the third a joint account. This avoids conflicts, especially if the two parties do not have the same income. On the other hand, if you get along well on the budgetary level, you can always only opt for a single joint account.
Good budget management requires determination and firmness. By knowing how to manage your finances the right way, you’ll avoid debt and piled up bills. If you can, make an investment, because that way your money will grow and can cover your expenses. Some sacrifices will probably be necessary, but it will help you preserve your future.