5 tips to get control of your money
We shared five common business practices that can serve to better manage your capital.
When I was in college, I fell in love credit cards and graduated with an addiction. My habit was growing as earning more money. By the time, I turned 30 and had more than $ 35,000 of debt and a mortgage to pay. Eventually, I decided to turn things around. But this did not happen overnight; it took me several years to control my money and this was possible when I understood that I should try my personal finances like my business. It was not easy to bring the cold rigor of the cost-benefit my daily life, but the result was that no longer worked for pay debts. I share five ways you too can do:
Monitor your expenses: As I was leaving the debt, monitoring of expenditures was the first thing I transferred my business to my personal life. I started writing all purchases made, no matter how small they were. Now, this is important: I did not judge myself for. I just wrote things in order to use the numbers to identify my spending habits were.
Create a budget: Budgets allow you to use monitoring information to expenditure plans for the future. No need to complicate much. You can use this simple formula of balance: 50 percent for necessities, 20 percent of savings, 30 percent wishes. How simple is it? If your expenses do not follow this parameter, you must go to the next step.
Practice conscious spending: This means actively choose where your money goes, just like you do in your business. Spending too much on things that you like and cut costs in the less important things. This occurs automatically in business, where you monitor every penny you spend. It is less likely that people spend without thinking if you know you will leave a paper trail.
Turn it into profit: I have a theory: If we replace the word “savings” by “gains”, the world would be a lot more motivated savers. Everyone knows that if a company spends more than it earns, you cannot make profits and soon the business will die. The same applies to personal finances.
Know your value: Businesses have a variety of financial indicators that let them know where they stand. There is no reason not to do the same at home; if you use software to monitor your expenses, just about generating a revenue sheet and profit and loss.