In any conversation with friends, the topic of how easily money goes away always comes up. Therefore, it is crucial to plan and spend it wisely, to ensure that you achieve your personal and financial goals.
It is common to find extremes. From the one who always lives below the minimum waiting for the next payroll to come in, to the one who doesn’t spend a penny and is obsessed with saving. Any expert will tell you that both cases are bad. You have to enjoy the reward you get for your work, but without losing sight of tomorrow.
Here are some tips to manage your salary efficiently.
PLAN YOUR EXPENSES
At the beginning of the month, you should make a forecast of what you are going to spend. Allocate an amount of money for rent or mortgage, fixed bills and sporadic expenses, and stick to it to the letter. If you want to treat yourself and you haven’t spent your budget yet, go ahead. But if you are already short of funds it is better that you leave it for the next month.
Some people apply the 50 – 30 – 20 rule. They spend half of their salary, save 30% and invest the remaining 20%. Within the 50% that they spend, they clearly define how much goes for each thing and how much remains available for whims and unforeseen events.
Following a strategy of this type guarantees that you will always be saving and investing something. While people who do not plan tend to save or invest “what is left over.” And this usually leads them to spend much more than they should.
THE IMPORTANCE OF INVESTING
Investing is making your money work for you. Instead of having accumulated savings, it is advisable to do something with them that gives you a return. Thus, you will prevent them from losing value due to inflation. Remember that every year, the price of life goes up. And each time, your money is worth less.
Some forms of investment are to create a business that you can manage part-time, or delegate to someone else. Also buy shares or invest in the forex market.
BUY WITH A HEAD
There’s nothing worse than ending up buying a bunch of stuff you don’t need. This applies to both personal items and everyday items. Do you go to clothing stores to see what is available, or do you go because you need to buy a specific item of clothing? In the first case, you are more likely to end up with a bag full of nice and flashy clothes, but that you most likely do not need.
Do you make a list before going to the supermarket? So you could avoid distractions and buy the food you really need to get through the week. Otherwise, it’s easy to end up with a shopping cart full of soft drinks and snacks. That, in addition to assuming an extra expense, they are not good for health.