This period is excellent for setting goals and creating plans, among them keeping the budget under control, so as not to have money headaches during the year. Goal setting requires setting clear objectives, as these will make it easier for us to accept any restrictions, since we have the perception of a future gain; but it is necessary to set achievable goals, and have discipline and focus throughout the planning, so that there is no frustration.
Tips on how to save money:
Identify your income and expenses
Numbers never lie, and the first step to take control of personal finances is to list, on the tip of the pencil, all your income and expenses. For this task, it is worth using a spreadsheet on your computer, or the various options of applications available for cell phones, or even the traditional notebook to control the bills.
Pay your bills on time and negotiate
Do not receive your salary and procrastinate paying your bills. You know the jokes that are shared on the Internet about money barely resting in the account? It is even better that it does not sit idle! The interest on late payments, even if they are low, makes a difference at the end of the month.
For those who are in debt, it is interesting to renegotiate debts. The credit card interest, for example, is usually higher than the interest on a loan, so it is necessary to make a study of what will burden your financial condition. So, it makes more sense to pay off the revolving debt with money borrowed from the bank, paying off the diluted debt as a loan.
Rethink your spending
Do you need to buy five new shirts or shoes? Is that appliance or object for your house really important? Why instead of eating out every day, don't you bring a lunch box to work?
Each small expense seems harmless, but at the end of the month, all of them added together can become the big villain of the budget. Therefore, have the emotional intelligence to make the right choices in pursuit of your big goal.
Plan purchases, investments, and important expenses
Planning is the key to success when it comes to saving money. It is much easier to cut a cost in order to use the money to fulfill a dream, such as buying your own house, a new car, or even that super vacation trip. Being sure of what is really important to you will also help you to make choices and cuts in your budget.
Have a reserve for emergencies
We never know when the unexpected will happen. The loss of a job, the car that crashed, a friend or family member who is in a delicate situation and needs help, and even a case of unexpected illness.
This is why it is important to have a reserve for emergencies. If you lost your job today, how many months would you have enough money to get by without worries? The ideal is to have three to six months' worth of monthly bills saved. Rethink the idea of setting a monthly percentage to form a reserve.
If you have money left over, invest it
Do you have some money left over? Then invest the surplus for the near future and for retirement! Many people think that investing necessarily means saving large amounts, but you can start small and increase your investments over time.
