Step One
Every month you have to make some payments (electricity, water, telephone, the neighborhood community, car insurance, etc.). So in order not to go crazy with all the bills, the first thing to do is direct all the bills into an account and pay them automatically on the same day of each month. This way, we will make sure to deliver the invoices on time, and we will save fines or penalties for delays.
Read also: How to Save Money Fast as a Student
Step Two
Another essential aspect is to have your bank accounts organized. If we have accounts in different banks, we can try to group them all in the same entity, which will save us commissions when transferring money from one account to another.
We will also save time when making arrangements. If you have accounts that you don't use, close them. You have to pay some maintenance costs to protect them and have your money much more organized.
If you want to save, record your day-to-day expenses. In the beginning, writing down all your expenses, from going for bread to grocery shopping for the week, can get a bit tiresome, but little by little, you will get used to it. You should also note if you pay in cash or with a card.
Step Three
After a few weeks of writing down expenses - a month is a good time - you can divide them into categories. One can be household expenses, other food, leisure, clothing, household bills, etc. Within each category, you can differentiate between payments made in cash and those made with a credit card. Month by month, you can compare your expenses in each category and know what you spend the most on.
Step Four
Once the expenses have been analyzed, you can study if you are more interested in using cash or cards, know when the most critical receipts will arrive and adjust other expenses, such as those in the leisure category, not to unbalance your accounts.
Also read: How to Save Money with a Low Salary
Little by little, you will discover what you spend more on, but if you start planning your expenses, you will balance them, and you will start saving.
Periodically review your expenses. Keep receipts, credit card payment receipts, etc. From time to time, check that there have been no errors when collecting them. If you save the receipts, you can always claim a mistake or a charge that should not have been made. It is essential to control the payments we make.
Step Five
If you invest, you must learn to assess the risk of each investment. Having a fixed term is not the same as having a fund or a pension plan. At all times, we must know where we should put our money. To better manage finances, we can inform ourselves. This way, we will avoid buying higher or selling lower.
Adapted and translated by The Cop Cart Staff
Sources: Uncomo
