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Basic rules for budget planning
Teaching financial literacy is the key to a comfortable life. Financial service MyCredit, which issues money to the card of any bank here https://mycredit.ua/en/, will share with you the basic rules of budget planning.
Rule 1. Income and expenditure accounting
You can manage and control your finances only if you know how much you earn and how much you spend.
Calculating income is not difficult. Just write down how much money you get on the main job, from assets (renting an apartment, car, etc.), one-time and social payments, part-time work. In general, you need to specify all the sources of income that are currently available.
Expenses are harder. You need to write everything, even the smallest purchases. It can seem burdensome and boring. But if you don’t, you’ll never know why money is slipping through your fingers.
You can keep a regular spreadsheet in Excel or download free financial accounting apps. This is even more convenient, because the phone is always at hand, which means you can quickly enter information on spending. Do it all the time.
Rule 2. Analysis
How do you deal with income and expenses? To do this, you need to analyze spending for the month. Are they all justified? Are all purchased items necessary? Are you satisfied with the current financial situation?
When conducting a cost audit, expect unexpected and not very pleasant surprises. They'll be 100%.
- First of all, you may have bought a bunch of junk you forgot about.
- Second, spending on bad habits or impulse purchases eats up the lion’s share of your earnings.
Rule 3. Setting goals
To maintain a budget, set clear, understandable, achievable goals. First, close all loans, mortgages and other financial obligations. After analyzing income, think about whether you can earn more and how to do it.
Perhaps it is worth investing free money in business, real estate, stocks, bonds and other instruments. This way you will have a passive income and a quiet future in all circumstances.
In addition, postpone for other purposes: “safety cushion”, unforeseen circumstances, health.
Rule 4. Plan
To achieve goals, you need to change your lifestyle. On the one hand, you have to find a way to increase income. On the other hand, change life habits.
- Learn to save.
- Get rid of bad habits: gambling for money, alcohol, cigarettes.
- Rethink your diet.
- Start working part-time. The main thing here is not to spend any more.
- Cut your expenses as much as possible.
- Learn to separate the concepts of price and value. Read books and learn from the rich.
The first step is the hardest. But doing it, you will not only put in order the finances, but also multiply them. Act!
