Start the New Year 2019 with a clean slate - a tempting prospect, especially when it comes to personal finance. We offer 5 simple rules of personal budget planning for the year, following which you will soon be abolished live from paycheck to paycheck, and dreams of a vacation or a new car will become a reality.
How you can help planning personal budget? You will see clearly how to spend money and where do they come to you. You may find new sources of income and their expenses necessarily be able to optimize. Proper distribution of cash flows to help you learn how to save money, which then you will be able to invest.
5 rules of a personal budget planning for the year
To create a personal budget, you will need a notebook and a calculator, but it is better to use the spreadsheet editor, for example, MS Excel. Also, now there are a lot of special computer software or mobile applications, free and paid. With their help, you can easily and effectively manage their finances.
1. Determination of income
If you have only one source of income - it is only the salary of a principal place of business, then the item will be easy to arrange. When non-permanent earnings determine your minimum plan and budget plan based on it. Do not forget to consider additional sources - interest on deposits, the arrival of the lease, part and so on.
2. Determination of costs
Divide your expenses into fixed, occurring every month (eg, food, utilities, tuition and vehicle content) and periodic (e.g., rental costs or hospital).
3. Drawing up a calendar of major recurrent costs
To understand what events you're spending the most money, you can analyze the past year. Typically, the most expensive are the vacation, holidays and birthdays, large purchases into the house, clothing and shoes, as well as preparing for the new school year.
4. Summarizing
Summing-up is that you match the income and expenses for each month. If costs prevail over income, it should be in the next month to delay unnecessarily the amount spent (or to find ways to earn more, or tighten the belt more tightly).
If incomes prevail over expenses, the balance of the money can be postponed or invest to generate passive income.
5. budget control
Control your budget, you should regularly Gather receipts from purchases, record your daily spending (even for a coffee and a snack in the café with a friend) and sums up every day.
You will also be useful to learn about the reasons for which women are saving for yourself.
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