How To Organize Your Expenses
Step one: Write down all expenses on a paper or worksheet.
Organizing the expenses, that is, the domestic budget, may seem like a difficult task, but the organization of expenses is indispensable for those seeking a financial balance, which is that “respite” at the end of the month. It not only helps to keep financial life more relaxed, but also facilitates planning with short and long term expenses.
For example, if you want to buy a TV next month, with the organization of finances, you can know beforehand if the new TV can harm your pocket or not. The same reasoning can be applied to larger purchases, such as a trip or a car: with expenses up-to-date, anything is possible.
Next, Credit Lender clarifies everything you need to know to organize expenses once and for all!
Organizing expenses: first step
Have you ever stopped to wonder if you spend more money than you earn? It seems complicated to answer that question, does not it? There is only one way to be sure: by clarifying how much you earn and how much you spend. So let’s go!
The first step is to write down, on paper or in a budget worksheet, your income (salary and extras) and your monthly expenses:
- fixed expenses – which are the expenses highly necessary for their survival, such as housing, food, transport and health;
- variable expenses – which are the expenses that could be discarded, such as leisure, clothing, restaurant, among others.
Although they are expendable, superfluous expenses are part of a good quality of life, as long as the pocket is not harmed.
So do not be afraid to write them down: how much do you spend (on average) per month with leisure, like cinema and theater? How much do you spend each month buying clothes, shoes and accessories?
There are a myriad of questions that can be asked in relation to your money (and how it is spent every month), and this is the time to let nothing pass.
When all your spending is part of a financial plan, it will make it easier to keep your pocket up to date.
Organizing expenditure: situation analysis
Now that you know how much you earn and how much you spend each month, evaluate whether the situation is quiet, alarming or scary:
It’s when you pay all your bills without delays; does not use overdraft; does not compromise the credit card limit; saves money without sacrifices; has kept a reserve for emergency situations; spare at least a little of your money for investments and travel.
What to do : You’re on the right path, keep it up. To keep your pocket on track, make a note of your expenses on a daily basis.
It is when you pay your bills, but you do not respect the maturities; uses the overdraft in an emergency; you have to make sacrifices so you do not run out of money; he can save money, but he rescues frequently; can consume but not invest.
What to do : It’s time to rethink the habits with your money. Set goals and seek to change your reality as soon as possible.
It is when you can not pay your bills or you live paying everything with interest; credit restriction occurs in your name constantly; uses all credit card and overdraft limits; does not save money for emergencies; can not acquire durable consumer goods (eg automobiles, appliances).
What to do : do not wait to organize your expenses. Negotiate your debts and do your best to keep your payments on track.
If you need, do a no-obligation loan simulation with us, so you can schedule yourself to get the bills in order.
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Organizing expenses: Expected expenses
At the end of the year, the increase in expenses with gifts and confraternities is expected by most Brazilians.
The problem is that few plan the end-of-year expenses and end up compromising much of their income, including the 13th salary.
Those who are looking for financial equilibrium need to remember the expenses that occur from the beginning to the end of the year, especially the mandatory expenses, such as IPTU and IPVA.
These expected annual expenses must have your payments planned before they even appear.
In annual planning, commemorative and gift expenses should also be remembered. To make it easier to plan your spending and control your monthly budget, consider the table below:
Check up (health)
To supplement, check the national holidays and their state table and set up your own table of dates that ask for a spending plan.
Organizing expenses: when to make the monthly budget?
Ideally, start organizing your monthly expenses a few days before receiving your salary. Not to forget, choose a date, for example, every 30th day, to write down the expenses that will be needed next month. Thus, it is possible to know how your financial situation is and hardly have surprises.
In this first moment, you will write down those expenditures already expected in the month, such as:
- water (average);
- light (average);
- feeding (average);
- medicines (average);
- among others.
The average spend can be calculated based on the last three accounts, but it is important that the values are close. Here’s how simple it is: just add the three values and divide by three.
Organizing Expenses: What to note down in the budget worksheet?
The answer is simple: write it down! Spending that seems insignificant, such as the “famous” coffee, can jeopardize your income and hurt your financial health.
Let’s take a practical example:
Suppose you spend $ 7.50 a day (Monday through Friday) for coffee before starting your file.
In the week, you will have spent $ 37.50.
In one month with four weeks, R $ 150.00.
Of course, this value is significant, so even small expenditures need to be planned. Only after clarifying all your expenses will you know what attitudes with your money need to be rethought.
Organizing expenses: installments
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When organizing your monthly budget, remember that credit card installments total a certain amount that should be considered in your financial planning.
For example, if you plan to purchase a car in a given year, how much of your money is committed?
To be clearer, if you buy something in the amount of R $ 1,000.00 and install it in 12 times, you have committed R $ 1,000.00 of your annual budget, not only R $ 83.33 per month.
It means that, within its annual income, R $ 1,000.00 is already committed.
Often, looking at expenses in this way is a big challenge, even a reason for earning income and funding, but it is important to estimate these expenses so that you can do your financial control correctly.
And avoid using a overdraft because his interest is too high and the debt turns into a snowball.
If you need credit, it is easier to apply for a personal loan, than you can use the money as you wish, and pay a certain amount per month than to be paying high interest on your money.
You can simulate personal credit online without commitment from all banks and financials.