New year, new plans. If you want to build a strong personal economy, you must learn how to make a budget plan. Do you think it is hard? It is not. You just need discipline and clear goals.
How much do you earn per month
Do you really know the answer? Well done. But that ‘s only the first step. You also need to know how much you spent. Simple fact: you can’t spend more money than you get. If you do, you have a problem, a big one.
Where does the money go?
There are two categories to divide the money traffic:
- Current expenses: Everything you have to pay for per month or year. Some examples: rent, taxes, health insurance, electricity and natural gas.
- Eventual expenses: Things that do not require regular payments.
If you really want to control where your money goes, you need to set limits for each of these expenses. Remember, you cannot spend more than you earn.
Pay off your debts (whenever possible)
You must pay off your credits every time you can. It is very important to avoid accumulated debts without control.
Within the monthly personal budget, at least the payment of the minimum installments of each of the existing credits must be contemplated. You can start by the smallest commitments.
Emergency fund
Nobody knows when problems appear. But you always have to be prepared for them. That’s why an emergency fund it’s absolutely necessary.
If you don’t have one, you should probably use your current money in an emergency. Buy other debt, squeeze your credit cards or turn to informal moneylenders.
How to make a budget plan realistic
Big goals are possible. You can make it. But the ways to achieve this must be realistic.
You have to build and follow a tangible plan. Nor is it about setting modets goals. The key is to take small steps consistently.
Enjoy
You can’t forget about planning time for fun. Alone or with your family and friends. It does not matter if it is a little money that you allocate to it.
