In a situation of choice and access to many opportunities, people sometimes lose their sense of control over money. I would like to buy at least something from the proposed, so there is no money left when they are badly needed. The ability to count money protects against temptation and leads to prosperity - with reasonable spending and savings.
Instructions
Step 1
List your income and expenses. This simple document will show in which direction money is disappearing. There are people who pay bills as they come in, not knowing how much to pay in a month. Therefore, there is not enough money to pay some bills, because there are other expenses. If the invoice arrives on time, it will be paid; and the next day there may not be funds for it due to new purchases. The list of income and expenses will streamline the situation and show how much money can be spent spontaneously, taking into account the necessary monthly purchases.
Step 2
Create a budget according to your personal goals. Consider the following or similar categories of expenses and savings: charity, piggy bank, taxes, home maintenance, food and clothing, transportation, outdoor recreation, insurance, training, debt, and contingencies. Where exact monthly amounts are known, plan them. If income changes throughout the year, for the remaining categories, indicate as a percentage where how much money is going, after deducting the mandatory fixed costs.
Step 3
Collect checks and keep records of every amount spent. Record which category, defined in the second step, the money decision belongs to. These are the rules of the game that you yourself have determined. If you don't follow your own principles, life will get worse.
Step 4
Control the targeted spending of funds. This means that if 2% is determined for recreation outside the home, you cannot spend more on this, even if you have money in your pocket. Now you know what you can afford and what you can't. Do not listen to friends who offer unaffordable activities - you have plans for money, and these intentions will conflict with the world around you. Keep your wallet safe from temptations.
Step 5
Apply long-term planning. Once you've learned financial discipline, start planning 3-5-10 years ahead. This will give you a sense of control over destiny.
