They are saving. Get inspired by their tricks
A tight budget afflicts many families and each struggles with it in its own way. Families Lina, Mika and Karen handle the situation so much that they put aside money for children every month and go on holiday to the sea once a year. With honest planning and order in finance, he knows when they can afford it.
The basis is an inventory of expenditure
After Christmas, we advised you to compile a family income and expense report. This is a great start, but if you want to make a perfect order in your finances, it will take a little more work.
First of all, you have to split your spending fairly into three groups:
- permanent – this includes expenditures that are roughly the same amount each month. These include energy bills, telephone, loan repayment and food.
- variable – one month you buy shoes, another one kettle. In short, this category includes the remainder of the monthly expenditure, which is not fixed expenditure.
- extraordinary – holidays, repairs and other big expenses. Always divide them by twelve for monthly reporting.
When planning your budget, always take into account fixed expenses and a margin of twelfth of extraordinary expenses. Try to keep your variable expenses the same every month.
Wondering where you can save
Knowing where your money is disappearing is just a step away from knowing what you can save for. Reserve one evening to explore the benefits of your phone plan and your energy provider. You may find that the competition has a much better deal that will save you hundreds of crowns a month .
If you have a verified financial advisor near you, you can contact him. Consultations once or twice a year are worthwhile. The consultant will provide you with a clear overview of financial products that can save you many ducks.
Save three times
Efficient savings should go hand in hand with spending cuts. It does not matter if you save just for a new car. In any case, you should start as soon as you get an overview of your spending.
Be inspired by Mr. Karen from Good Finance, whose family even saves three times: “We agreed with my wife how much we both send each month to a savings account. In addition, we transfer the remaining amount for each month there. It pays off because the money is better interest in the savings account and we can transfer it back whenever we need it. In addition to the savings account, we also have a cup for fifty crowns at home. My wife complained that she couldn’t distinguish them from ten crowns, so I suggested taking them out of her wallet. Over time, we all started to do it, we emptied the cup once a year, and we have the content as a holiday allowance. ”