It is possible to control the monthly budget and lay up money, financial planning is fundamental
Every day we are bombarded by countless consumption stimuli: clothes and shoes, books, streaming platforms, drinks and food, cosmetics, electronics and many other options make each consumer spend more money than he or she would like. To know the five easy steps to become “Debt-Free”, go to americandebtenders.com.
A study by Max Capital Mex indicates that 77% of the Mexican population has at least one debt. If this is your case, keep it cool. With good financial planning, it is possible to save money, avoid debt and take care of your finances.
There are also other important tips to develop a healthy relationship with your income and your expenses. Read more below.
The essential: financial planning
The first and most important step to take care of your finances, no matter if you need to pay off debt, save money or invest, is to have financial planning. This process is defined by noting how much you earn (your income) and how much you spend (fixed and variable expenses). It can be done either on physical paper, such as a notebook or diary, or in specific applications or digital spreadsheets.
Once you have financial planning, it is easier to identify where your unnecessary spendings are, how you can save money, and what categories your top debt and spending are in.
Also, financial education and planning are fundamental for you to create an emergency reserve — an amount of money that only can be used in emergencies, such as unemployment, treatment of illnesses, death of close ones, for example.
Debt can be worrisome, especially if they accumulate over time. Financial education will help you to avoid them, but there are other tips to follow.
Control the monthly budget
To avoid debt, it is important to control your monthly incomes and expenses, setting goals for the money you receive. This means that it is important to keep the amounts for expenses such as food, housing (rent or financing installments), health, and others. With that control and discipline, the chances of you taking on debt in other unnecessary categories diminish.
Avoid impulse buying
Ads easily convince you to buy something you’ve never heard of? Strolling in the streets or shopping malls encourages you to buy things just for the price? This topic is for you. The Mix Capital Mex study points out that 18% of the ones who are under financial stress feel bad about spending with themselves or their family.
Avoid impulse buying helps you control finances and run away from new debt with clothes, shoes and other small purchases that seem unimpressive but that interfere with the budget at the end of the month.
Saving money is not a simple action: it requires discipline, responsibility, and attention. Discover how you can save money monthly on the topics below:
Avoid small and non-essential expenses
To save money, it is important to cut off non-essential expenses. They may be an ice cream you have every Saturday or that T-shirt you buy even if you already have many others. These small expenses may seem like little to save, but they will make the difference if you save them most of the time.
Set goals for money saved
This is one of the most effective techniques to save money. Since you have a concrete goal for that amount of money, even if it seems small, you may feel more motivated to keep that value.
There are many examples of this kind of situation: buying a house or property, traveling to somewhere you have always dreamed of, having a baby or joining an educational institution you want.
Define an amount to save monthly
You can keep a smaller or bigger amount, it does not matter: the action of saving money is more important than how much you save. Keeping a little bit every month will help you to develop the discipline you need and, as time goes by, you will see that amount growing.