Establishing rules or policies for spending control is critical to avoiding debts that could put you in undesirable situations. Who never, for example, made an unnecessary expense and, at the end of the month, was pressed to take it off having to turn to family and friends to borrow that money? Lots of people, is not it?
So, knowing that this situation is very common and that you, like many people, want to avoid it, we prepare a list with a few steps to ensure total control of expenses. Check it out and avoid a financial crisis in your life!
1. Analyze your income
Knowing your income is the first step for you to have financial control. We are not talking, it is to say, of the salary you earn per month, but rather what is left of it after subtracting the debts you have. It is thus their net income.
In this calculation, consider not only your salary, but everything that contributes to your monthly income, such as extra income from financial operations, rental of property, etc.
2. Make a diagnosis of your debts
Making a diagnosis in relation to your financial life is crucial so that you know your real income commitment, but also the open accounts that still need to be paid.
Answering questions like this can help you with this task: What did you buy recently and still need to be paid?
Listing each item purchased, the total amount and whether it has been divided into credit card is crucial so that you can control the expenses and thus not get into a financial crisis. Here is an example to serve as a reference:
The illustrations above are hypothetical cases, but they can help you accomplish this task and thus get a full diagnosis of your debts.
3. Know your monthly cost of living
See, in addition to the debts we mentioned, you can still have electricity, water, internet, telephone, rental of property, among other financial commitments.
It is important to analyze all this so that, in the end, you know the relationship between balance and expense. It is a relation that can be summarized as follows:
( monthly gross profitability ) – ( amounts of debt contracted + cost of living per month )
4. Develop planning for cost control
Step one : After conducting the diagnosis of your financial life you will have a holistic view of your situation and can, from this, prepare a plan, so that you have complete control over your finances.
Second step : it is to design such a tool, which can not only help you to pay off your debts but also provide you with adequate time to make new expenses without harming your financial life.
In this spending plan , you must place the products that you have purchased that are still being paid, in addition to the monthly fixed accounts that we highlighted earlier. Thus, you have notion whether or not you can buy items you want at that time.
Many people do not do this and accumulate debts over debts, which can not pay and have their name inscribed in credit protection agencies such as SPC and Serasa. Here’s another practical example for you to better visualize:
So, let’s say that this is your purchase, but that, besides it, you pay for other fixed ones like water, rent, electricity, internet and cable TV. All debts together add up to R $ 1,000.00.
However, you only get $ 1,800 a month. Thus, only R $ 800.00 remains, value that meets other demands, such as food, medicine, medical expenses, leisure, etc.
In this case, the most recommended is that you only think about making a new expense after December, when you can spare, from your monthly income, $ 300.00.
Did you realize that with planning we have a real sense of what we can and should not buy and when to buy?
With it, we can have total control of expenses and, thus, avoid debts that can cause us headaches.
5. Use technology in favor of your savings
Nowadays, thanks to the development of society, you can use technology in favor of your savings. What is not lacking are spending control applications and spreadsheets that can help you keep your expenses in order.
Usually apps and spreadsheets show in list and chart format where we spend the most in the month to see if we have blue, positive balance, or red with negative balance.
6. Consider eliminating unnecessary expenses
Many people, when they receive their monthly salary, often make unnecessary expenses , such as buying an item they did not need or, for example, eating at high prices, and they could have prepared a tasty meal at home.
Performing a self-assessment regarding this can help you not only save money, but also control your spending rationally, thus avoiding debt.
At this point, ask questions such as: Do I really need this product? In place of eating in that place, which is more expensive, why not eat at another that offers a better value for money, or even eat at home?