There is no right time to start saving, but in times of crisis containing spending more than a goal is a necessity. Learning to take good care of your money and have a more peaceful financial life is very important.
To help you in this difficult mission of understanding your spending, classify the need for each one of them and start putting the economy into practice, we have prepared a step by step that will put your financial situation in blue.
Evaluate your personal expenses
There are some expenses that are essential, others not so essential, and there are still those that are easily dispensable. Knowing how to classify each of your expenses will make it much easier to save.
Start by listing all the expenses you’ve had in the last month and classify them into three categories:
Essential expenses
They are those expenses that cannot be left unpaid, such as housing, transportation, consumption bills, food, etc.
These kinds of expenses cannot be totally cut, however, they can be reviewed and it is possible to find more economical solutions.
Expenses of medium importance
In this category you should include those expenses that are not essential, but are in some way adding to your life, such as education expenses or house or car maintenance services.
This type of expenditure usually has a deadline and can be planned in advance, so before you start an expenditure like this evaluate your real need and whether it will fit into your budget for the period it will last.
Superfluous expenses
The banal expenses are the easiest to cut, but they are also the ones that get out of control the easiest, among them are shopping, restaurants, tours, everything related to leisure.
To reduce these expenses there is no other way if you don’t have control and determination, know how to say no to certain luxuries and give up some facilities.
Cut expenses
After evaluating all the expenses you have had, assess the real need for each one, and which ones can be reduced or even extinguished.
Some everyday expenses are invisible, but they are there, taking your money away, such as credit card annuities, bank fees, extra services on consumer bills, etc.
Make a withdrawal of all these expenses and contact banks, internet operators, among others, to cut these expenses.
Find out how much you earn
When you receive your salary or your company’s profits, you have an X amount in your account, and the worst mistake a person can make is not knowing exactly how much you earn.
It may sound like a joke, but there are actually many people who have never stopped to calculate the net amount they receive, that is, how much money they actually put in each month, and so they have no idea how much they can spend.
Slicing your money
Once you find out the exact or approximate amount you earn, it’s time to define where your money will go, so you better control your expenses and use your money wisely.
Your essential expenses cannot exceed half of what you earn in a month, if they exceed that amount it is time to review your expenses and start to consider whether it is worth moving house, exchanging the car for public transportation, etc.
Of the remaining fifty percent you can devote about half to medium and superfluous expenses, thus leaving a quarter of your money.
This remaining one quarter should be saved for the future, of course this is your decision, but it is highly recommended that a part of your earnings be saved for investments.
Spend with conscience
We spend most of our time working to get money, so being aware of how to spend it is not only responsible, it means being honest with yourself.
Those who take good care of their money can have a quieter life and avoid unpleasant surprises. So plan your spending well, be transparent with your finances and never worry about being in the red again.
Take care of your personal accounts and count on Easy Work Space to help you with your business, here you will find several services and all the necessary infrastructure for you and your team to work without worrying about anything.