Ever happened to you that you start the month with some money and just before the end of the month is gone completely and worst of all is that you do not know exactly who spent?
If the answer is yes, then I must say you’re part of people who do not have good money management. Whatever you earn much or little money, you know very well money management, really like your finances better and have more control over your life.
For this reason, in this article I am pleased to share you a practical guide on how you can more efficiently manage your money.
Keep Track of Income and Expenses
As a first step to start with good money management is to keep a tight control of our income and expenses. We can do it with paper and pencil or on our computer in an Excel template, here write down from the first day until the last day of the month our income and our expenses, and each of these with its own detail, ie, from which our income and where our expenses are directed.
Evaluate Our Financial Situation and Take Action
Done this in a disciplined manner during the first month, now proceed to analyze the information and evaluate the outcome, which may be one of the following:
1. Your income exceeds your expenses
2. Your income and expenses are similar
3. Your expenses exceed your income
If we are in the first situation we can say that we are well financially, however, we can take steps to ensure that the situation is maintained or improved even more. This situation gives us the facility to save the difference is left which is very good, but sometimes only save to save is not enough we must also establish a purpose in saving, and one of those purposes may invest the money saved, which will allow you to increase your earnings even more.
If we are in the second situation we can say that our situation is sufficiently tight and live the limit. In this situation we must take action to make it better and find a little more in the first situation. First and as is logical to reduce or eliminate any of our expenses and to the extent that diminish go saving the difference in favor and invest the money as it as the first situation.
If we are in the third situation can say that our financial health is not at all well, and if we have poor money management usually this will always be our situation. And actually this does not depend on how much you earn, because I know cases of people earning up to $ 10,000 dollars a month and still are in this situation because their expenses are up to $ 15,000, and almost always cope this situation with loans or credits to cover the expenses not met. The measures to be taken here should be rigorous, we analyze well the expenses recorded for the month and are reasonable which are more or simply were unnecessary and not continue making them public and reducing debts gradually. We must also work a little more and try to find alternatives to generate extra money.
Make Money Control a Habit
Henceforth it is important that we continue carrying the record of our income and expenses, this is as important as keeping a medical record, except that here we will check our financial health. I personally have made control of my money is a habit like eating, and every month carefully evaluated my financial situation.
Anyway, this does not mean you live badly, perhaps at first if we live a little limited, but eventually increased the margin we spend our income as always increase with the difference established.