Even if you are not a lynx in mathematics, by merely handling a simple spreadsheet or Excel, you can organize your monthly expenses. We recommend that you do the exercise that we propose step by step. First, you must open a column in which we will put all the fixed expenses.
In the column of fixed expenses, you must consider electricity, gas, food, internet, telephone, mortgage or rent, transport, schools or nurseries, community, and of course, leisure. That is all those expenses whose invoices reach us every month without error.
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Next to it, you must put the amount that each of these expenses entails. Let's suppose that the total of all of them amounts to € 1,500 every month.
Next, you must put another column called annual expenses, which are those that we pay once a year, but that involves a very significant effort for our pocket. For example, we talk about car insurance, which usually arrives once a year and makes us wreck our budget, or house taxes, house insurance, or the revision of the boiler are some examples. Suppose that the sum of all of them amounts to € 2,400 per year.
Also, leave about € 100 in the account or, depending on the saving capacity that each one has, always leave a fixed amount for possible unforeseen events. For instance, if the washing machine malfunctions, and you have to change it, or you have to enroll the child in school. That way, meeting these expenses will always be less horrible.
To conclude on our monthly expenses, we need to make another column in which we describe the family income and add them all together. Thus, if the sum of income is € 3,000 and our monthly expenses are € 1,700, then we will have a saving capacity of € 1,300 in our family. Hence we can leave about € 300 in our account for contingencies.
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The rest, you can leave it in a different account so as not to touch it and save it in the face of vacations or future family savings. If you organize yourself well, you will see how your money goes a long way.
Adapted and translated by The Cop Cart Staff