Many people, especially those who have just begun to provide for themselves, face problems in managing money. This article is intended to help understand and learn how to control income and expenses.
First you need to determine the mandatory monthly costs: for example, payment of utilities, communications, fuel or travel and so on. As a rule, a more or less constant figure is obtained, the spread can be about 1000-4000 dollars per month.
Also consider such necessary things as food, clothing, medicine, and the like. Having calculated the approximate numbers from these two points, you can subtract them from the amount of income (salary) and get the remaining amount. After that, it is worth analyzing what it goes to and, if necessary, draw conclusions for yourself and make changes.
Budget planning is mandatory: after receiving wages, it is better to save money on the most necessary things, and also, if you have plans for the future, leave a certain amount for them. If you save a little money every month, then you can notice that the amount has become quite significant.
Once you have decided on the amount that you defer for fixed costs and the future, you can begin planning the current month.
The remaining funds you can spend on entertainment, professional self-development, education, charity and more – in general, optional, but necessary things.
To develop a habit of tracking expenses, you can try to record them – first every day, including small expenses, such as travel, snacks. Thus, it is easy to see where the money “disappears” and learn how to treat them more wisely.
Nevertheless, to control income and expenses it is not at all necessary to limit yourself in many ways – it is enough to find out for yourself what most of the money is spent on, and to think out a more reasonable plan of spending. Also, having freed up a bit of time, it is possible to find a side job that will not take much effort, but will become a good source of income – for example, understanding sports and taking an interest in them, you can try to earn money on bets.
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