No matter how much you earn, you will definitely not have enough money for something. This is the opinion of people who do not possess financial management skills. In his book How to Get Things Done, David Allen recommends a specific income distribution system that covers all significant areas of life. This allows you to keep income and expenses under control and enjoy the achievement of financial goals.
Instructions
Step 1
Assign a share to pay yourself. Spending everything earned means paying other people. To save some money is to pay yourself. A person who does not save takes risks and misses many opportunities.
Step 2
Make a list of taxes. You need to know how much it takes for recurring tax payments per year. For example, this is the annual property tax.
Step 3
Determine the costs of your home. These are rent, rent, renovation.
Step 4
Allocate a part for household needs. This includes the necessary expenses for clothing, food, and various care equipment.
Step 5
Determine transportation costs. It is easy to calculate the costs of work and back, plus a reserve in case of unforeseen taxi rides. Or the cost of maintaining and operating a car.
Step 6
Set aside a share for leisure. This includes everything that happens outside the home.
Step 7
Determine the percentage of your insurance income. Plan life, property, health insurance. If you've never thought about these expense items, gather the information and start saving. Risks must be closed.
Step 8
Set aside a portion for debt and contingencies. Something sudden always happens in life. You must have separate funds for this.
Step 9
Determine your share of business expenses. This can be education, professional development, special trips, meetings.
