Salary: comes in quickly and disappears just as quickly. If you do not know how to properly manage income. Every day it becomes more difficult to set aside money for a dream or even a vacation - in this case, an expense diary comes to the rescue.
Where to start on the cost management journey?
Create a table of expenses in Excel / Notion or an application.
To track expenses, you can use two methods: maintain a table with columns "income / expense / balance" or record future expenses and compare them with real ones. The expense column can be categorized for clarity (food, clothing, pet supplies, etc.).
In the case of applications, everything is much simpler. You enter expenses by category - the application displays your expenses in the form of charts or graphs. Examples of such applications are Monefy, Money Lover, GoodBudget, Money Flow.
Take away waste
Go to the banking app and view your expense history. Who has recently gone to fetch a table lamp and left with new pillowcases, candles and chairs? 😄
The very first analysis will reveal a lot of waste that can definitely be excluded. Calm down, we're not talking about giving up your favorite coconut latte on the way home. Perhaps you have subscriptions that you haven't used for a long time. Or, on the contrary, some are not enough for reasonable savings. Let's say you pay monthly with online transfers for a gym, hobby, etc. If you don't keep track of the amount of transfers, you can increase your expenses with transfer fees. You can get rid of them with the help of an unlimited subscription in online banking or control of free transfers.
Define a financial goal.
Each task should have a meaning - it is important to understand why you are spending. The goals may vary depending on whether you live alone, with a family or with children. The main aspects of the goal are specificity, attainability and measurability. And in order not to deviate from the path of spending, you can tell family and friends about your new habit. So you will find those close to you in spirit and will compare your results.
At the end of each month, analyze unmanaged (utility bills, mortgage, gasoline) and managed (entertainment, clothing) expenses. Estimate how much money you spent on your managed spending and figure out how to cut it back in the next month.
Sorry for my bad english :)
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