From counseling experience accumulated over more than 25 years, we have realized that many people do not have a clear understanding of their expenses and thus their savings. At best, users barely know the balance and general performance of the current account. But if we do not know how we spend our money, it will be difficult to make adjustments to correct any complex situation.
Expense Tracking
In such cases, the first advice is to keep track of income and expenses, to understand how our financial situation is going. Of course, this activity, besides being tedious, takes up part of our free time. But there is technology that comes to our rescue. Electronic and digital payments allow us to keep real-time tracking of the expenses we make, without having to stand around transcribing income and expenses with pen and paper.
This allows us to know at any time how I am managing money and make checks against the monthly budget I have set to use.
What can you do?
Having solved the first problem, the next step involves knowing two fundamental aspects:
– What is the amount of my expenses?
– What kind of expenses do I make?
Monitoring spending.
Tracking expenses then becomes a key aspect of being able to determine how much we are able to save on a monthly and annual basis, so that we understand what expenses we can reduce to increase savings.
So, today’s advice is: be aware of what you spend.
Learn about other financial best practices
Good financial advice #21 | If you can buy it twice you can afford it
Shopping is an activity that has become easier and more fun over the years. Shopping, online or offline, has never been easier. This over-simplification of the purchasing process, however, hides some dangers that may lead us to not think through the purchase and thus overrun our budget. Here are some simple but useful tips to avoid crazy purchases.
Good financial advice #20 | Read a financial book every year
Reading to be more informed and to understand what strategies to adopt in managing personal finance and what mistakes not to make is the first step in increasing our knowledge.
Good financial advice #19 | If you have to borrow you can’t afford it
Had it ever occurred to you that if you have to borrow money then it means you cannot afford to make that purchase. Learn to manage the budget you have, without having to take out loans–because it might say you can’t afford it.
