Managing the budget is always a delicate issue and one that poses concerns for many households. However, there are many tips to adopt to avoid unpleasant surprises. Applying a few rules not only makes it possible to better manage your money, but also and above all to put some money aside for future projects. Here are 10 tips to better manage your budget.
The first advice to follow is simply to clearly identify your resources and your expenses. Once you have determined your cash inflows and outflows, you can organize yourself better. This first step allows you to do two things. On the one hand, you will know the expenses that weigh the heaviest in your budget. On the other hand, you will be able to detect the months during which you will have to be particularly careful.
In practice, you are going to create a table, the ideal would be to create an Excel file. In a first column, you will place the resources and in a second, you will place the expenses. Above all, do not forget anything, be it regular income such as salary, irregular or even random resources.
In the money outgoings column, you will place fixed and compulsory charges, expenses that you can limit (such as food or outings and leisure) as well as non-urgent expenses that you can put off until later. (purchase of a new piece of furniture…).
Once you have defined all the resources and expenses, you will be able to prioritize everything and reduce everything that can be.
Every month (or even every week for those who have the time), take the time to check your bank statement. Moreover, with new technologies, you no longer need to wait for the paper document sent by the bank for the Just log in to your online account and you’re done.
Note that it is not only a question of making sure that there is no error, it is especially to have a precise idea of the way in which you spend your money. By spending, you do not necessarily realize the importance of your purchases.
Concretely, you will check all of your cash inflows and outflows. The ideal would be to have the possibility of paying everything monthly. This will allow you to simplify the budget and better anticipate, thus avoiding unpleasant last-minute surprises. It is also possible to monthly pay all expenses (energy, insurance, taxes, etc.). This way you know exactly what you have to pay every month. Also, you can track your budget progress in real time and take action if you find that something is not right.
Always to avoid being caught off guard at the last moment, you can make sure to define in advance a budget for each item. This step is easier when you have already defined your resources and expenses. Once again, it is better to set up an Excel table to track your expenses (or set up a small notebook to fill in as you go).
At the beginning of each month, you therefore determine the budget for each item (food, outings, fixed charges, etc.). Every time you make an expense, you write it down carefully. Once you see that the ceiling is about to be reached, you can take action. It’s an effective way to avoid excess and guilt all the way.
There are expenses that are made primarily for pleasure. This is the case, for example, with leisure or clothing. The ideal would be to determine an annual budget: for example 3,000 euros per year, which corresponds to 250 euros per month to be set aside each time. You can then make purchases that slightly exceed the budget, provided that you do not make any other expenses later, always respecting the limit imposed from the outset.
Very often, we tend to buy food without consuming it right away. Result: food products accumulate in cupboards. At the same time, you continue to buy more and more. To save some money, get into the habit of emptying your pantry.
For a month, make sure to finish everything in the cupboard and eat what’s in the freezer. Of course, you can buy some vegetables to add to pasta, for example. But, whenever possible, when there are enough ingredients in the cupboards, don’t spend unnecessarily elsewhere.
Saving is always difficult and we tend to always postpone. Get into the habit of saving now. Put some money aside every month. Do it at the beginning of the month and don’t touch it anymore. The ideal would be to schedule an automatic transfer to a savings account. This way, you won’t be tempted not to save at certain times. Whatever happens, your savings are already reserved.
For couples, it makes sense to have three bank accounts, including two individual accounts and a joint account. The ideal would be to have a single account for everything, but partners rarely opt for this alternative. In any case, it is essential to agree on the amounts of the expenses and on the way in which they are going to be shared. From the outset, it is necessary to set limits not to be exceeded to avoid any overflow.
Another tip to control your expenses is to pay for your purchases in cash. Each beginning of the week, calculate the value of the purchases planned for the next 7 days and withdraw the corresponding amount in cash. Throughout the week, you must take into account the decided budget and make sure not to exceed the forecasts. At the end of the week, if there is no more money, you will know that there has been mismanagement. With this trick, you become well aware of the money going out and helps you avoid impulse spending.
If, despite all the advice mentioned above, you still have trouble managing your budget, it might be a good idea to call on the services of a financial coach. The latter will be able to give advice to better understand the difficult end of the month and carry out real budgetary gymnastics.
This specialist will also provide an outside perspective on your situation and can provide you with valuable advice and tips to help you manage your budget better.
Budget management is above all a matter of discipline. It is important that you establish rules from the start and that you stick to them scrupulously to better avoid excesses and unpleasant last-minute surprises.