We think differently! How to keep track of your money
Surely, every person making money faced such a problem as unaccounted spending, forcing them to worry about where the money went. We have a long and tedious to remember their last spending, recalculate money, as a result, only a headache is added.
Do I need to consider the budget?
Many financiers as a solution to this problem offer to keep records of your budget. There are a large number of special mobile applications designed to account for your personal budget, in addition, you can fill in the old-fashioned ledger. Technological accounting of the budget has one big advantage, besides its convenience, is accessibility for all family members. It is believed that in this way it is possible to reveal the hidden causes of expenses and at the same time optimize revenues. However, is this method really effective?
First, accounting will take you a lot of time. Remember how long it takes you to fill out payment receipts at the end of the month. It’s not easier with the budget – you need to save all the checks, put them in an application or a notebook, count them. Are you ready to lose an hour a day to know what you spent money on? Calculate how many such hours will come in a year, a month. Impressive? But it would be more logical to spend this time on making money. In addition, with a fairly high income, counting kopecks spent on a business lunch would be completely pointless. This method is suitable only for the search for expenses on which you can save. For example, if you spend 20% of your income on some kind of nonsense like fast food, you should think and not replace this fast food with a one-time, but more substantial acquisition?
But, it is necessary to recognize that in some cases such accounting of funds will still be effective – if they are engaged, for example, once a month. It will be especially convenient for office workers with a stable salary and approximately the same monthly expenses. In this way, it will be possible to track how often there is a need for unplanned expenses, and then try to optimize your income.
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Or maybe it is worth keeping track of income, and not expenses? Of course, this is easier, because the sources of income are much less than the items of expenditure. Usually this is salary, income from deposits and some third-party earnings. Further, this money is distributed – they go to cash storage, to investments, if you are doing it, or remain in a bank account.
By linking these figures, you can find out how much money you spend, and how much you save, in a much simpler way than daily budget calculations. In addition, income accounting is enough to do once a month.
There is an easy option of accounting for funds in the absence of large deposits – budgeting. Do as a state or large companies – plan your expenses. To do this, you need to divide your income into budget items. For example, with each salary of 1000 UAH you set aside, the remaining thousands are divided into regular expenses – food, accommodation, entertainment, and partly – on unscheduled purchases. The main thing in this approach is self-discipline, because in no case can you touch deferred funds, keeping them in the account, they will gradually increase your income.
Another way to increase revenue is investment. If you are not a multimillionaire, but only aspire to be, then large investments, unfortunately, will not suit you, and it is not safe to use small ones in our conditions. Most middle-income people do not have a clear idea of what an investment is. There are, of course, such examples as the MMM of the 1990s and its modern reincarnations; Forex, but for competent participation in them, you need to spend more than one month studying the basics of investment tools. So it will be wiser to keep money in the bank until they reach a decent size.