Having control over your personal finances is the best way to not despair about bills and make your dreams come true. This is even more important for young professionals, who are starting their careers and receiving their first salaries: the sooner you learn to control your financial life, the more peaceful the future will be.
Thinking about it, we gathered the best tips from experts in today’s post. They come from the Bank of America partner, Better Money Habits, and from the website specializing in business and financial life Business Insider.
Check it out below and get started getting organized today!
Know how much you earn
This may not seem like the best personal finance tip. After all, how does anyone not know how much they earn? But the truth is that many people have only an idea of their salary, especially those who have irregular earnings, such as self-employed workers.
If you are registered with a company, always check your account when entering payment. If you have more than one source of income, write down for at least 3 months everything you receive. Thus, it will be possible to have an average of how much you earn.
Record your expenses
When it comes to personal finance, this is the most common advice. That’s because it makes perfect sense and has immediate effects: when you write down everything you spend, you are more aware of what you are spending, whether with the electricity bill or going out on weekends.
Check your credit card statement, your checking account and be sure to think about what was paid with cash. You can write it down in a notebook, but today there are also apps to help you.
Find out where you can save
Usually, when recording your expenses, you will discover some unnecessary bills. Are you paying for the gym, but never going? Cancel the plan. Are you spending too much on lunch? Start taking your food to work. These are small changes that can make a big difference to your budget.
Saving money just for saving almost never works. That’s because the money saved seems like a waste: why would you leave it standing in your account when you can use it to have a more fun or comfortable life?
Start thinking about what you want to do in the future, whether in the next year or 10, 20 years from now. Do you want to spend your next vacation abroad? Buy a car? Check-in a property? Change city? Have good money for retirement? Define your goals and start saving money by thinking about them.
Create an emergency fund
Emergency funds are exactly what they seem: an amount that you should have saved for when an emergency arises. It can range from a health problem to a sudden layoff – that is, anything that can upset your personal finances.
The emergency fund can start small, with the amount you need to live for 1 month. Here, only the basics come in, such as rent, the electricity bill and other expenses that you can’t help paying. Then, increase that value to 3 months, 6 months etc.
One of the great advantages of living in the internet age is that many tasks can be automated, including your accounts. Automate the payment of monthly expenses that always fall on the same day and avoid fines for forgetting the due date.
Automating savings is also a good idea. So, you don’t have to remember to go to the bank’s website to save your money in savings.
One last important personal finance tip: plan for yourself the bills to come. At the end of the year, you already know that you will need money for Christmas. At the beginning of the year, he knows that he will need to go back to school. Program in advance and avoid tightening!