by Jesus Barrena Let's see how to plan your finances in a simple way. Correctly managing your personal finances will definitely help you achieve your daily objectives and goals.
Contents
Make a family budget to control your finances
The most important thing is to make a budget. With a budget you can plan all your family expenses and it will help you draw up an action plan to achieve specific goals. Depending on your balance between income and expenses.
Having a budget for your family finances allows you to have control and decide which direction to choose or where you want to go in your family finances.
What are your financial goals?
If you set a financial goal, the budget will
It will help you make appropriate financial decisions to achieve it.
We are not just talking about the savings goal, the first thing is to make ends meet, have a cushion of money for unforeseen events, take a trip, save for the down payment on a flat and others.
Budgeting Practicalities
How to budget
The fundamental thing when making a budget is to keep track of your income and expenses. Write down your expenses and savings somewhere.
Control income and especially expenses.
On the other hand, expenses are very varied, you must classify them, some are necessary and some are not, some have a fixed amount, others vary in amount, some are monthly, others quarterly, annual...
The important thing is to be consistent when controlling expenses in relation to income.
Steps to make a family budget
- Expense control.
- Set a goal. What do you want to achieve?
- Put a date and a savings amount.
- Prioritize expenses.
- Write down expenses and differentiate what is important from those that are not important and can be reduced or eliminated.
- Review the budget. Monthly, quarterly, semi-annually or annually, do a review to see if your objectives are being met, if they are feasible with your Personal Financial Plan to achieve them.
The importance of having a family budget
Making a family budget and following it will help you plan your finances correctly. In addition to achieving your financial objectives, as well as being able to make the financial decisions that best suit you.
This is what is known as the financial culture o financial education.
Where to invest the first 1000 euros saved.
Once we have the family budget done and we have saved enough to cover the emergency fund or financial cushion, it is time to start investing.
A first object can be save 1000 euros to start investing. The questions that come to us now could be:how to invest 1000 euros? where ¿where to invest without risk?.
The usual thing is to be prudent when starting to invest assuming little risk, which is why it is advisable to have the help of a personal finance advisor; and in any case be aware of the risk we assume.
