There are several important items of profit spending that must be adhered to every reporting period. But sometimes urgent goals arise when you also cannot do without spending. All this and more should be considered when planning your personal budget.
Instructions
Step 1
Make it a rule to keep a diary of income and expenses. This tool will help you to always be aware of your financial condition. It is enough just to outline an ordinary notebook in two halves. In the first, indicate all your receipts. In the second, absolutely all expenses. Summarize each month. All of this will help you reduce costs over time.
Step 2
Save 10% of the earnings you received. As soon as you have even a small cash flow, set aside a tenth of it in a separate place. This will be your insurance policy for the future. Do not waste it under any circumstances. Do this only if you need to solve force majeure problems. This amount will gradually accumulate and will soon become your financial safety cushion.
Step 3
Pay for utility bills. Part of your income will go to pay for heat, telephone, water supply and electricity. Without this item, it is impossible to manage your budget, since the majority uses these benefits of civilization. All of them, of course, require timely payment. Try not to get into debt.
Step 4
Set aside about 40% for your daily expenses. Half of your income will go towards food, medicine, clothing, travel, etc. This can include other small expenses that are constantly encountered by the modern person. You should not save on food and health care, as your health and life will depend on it.
Step 5
Give 10 of the return on investment. In order to increase, and not only to spend, earnings, you need to properly dispose of them. Investing is one such tool. It can be an elementary deposit in the bank, which will bring about 8-10% profit per year. Or you can invest in mutual funds or stocks, which can give about 30% per annum or more.
Step 6
Donate leftover money or spend on entertainment. After all the operations described above, you should have approximately 10% of your income. You can already spend them at your discretion. Whether it will be a charity or a waste for your own needs - it's up to you to decide.
