No matter what your financial situation is, it’s always there a moment when you will slip…
During this road trip you risk leaving more money than expected by the roadside.
It happens to everyone more or less regularly and we don’t have to make a mountain of it.
Photo copyright: kyn_chung.
Unless of course you have been freewheeling for several months because in this case we must act Soon !
The most important thing is what you will do after this incident to get back “on the right path”.
Depending on the situation, the maneuver to be performed and the intensity to be given will not be the same.
Learn to use the right techniques
First of all, it is important master the basics of personal finance.
Without this little baggage, you risk going off course again and again.
As a result, the situation will become increasingly difficult and it will take longer to get out of it.
Be aware of the situation
This is the most difficult and uncomfortable step.
Difficult because you have to open your eyes about your situation and your money problems.
It’s inconvenient because by doing so you will realize you of your situation
But at the same time if you do nothing you will open your eyes sooner or later …
So you might as well anticipate this step and do it in the better conditions for you 😉
You already have must have seen warning signs more or less pronounced and repeated.
Which vary according to your actions and above all the state of your finances.
For example, a letter from your bank for exceeding the authorized overdraft.
Or a slow erosion of your checking account balance at the end of the month.
It is never easy to realize that you are doing things wrong.
Nor that over time they get worse despite our good intentions …
But it’s much more inconvenient in the long run let things escalate.
Because when you get to the point of no return you will leave the feathers there.
It is therefore better “suffer” a little now very late.
Even if suffering is a very big word as we will see below 🙂
Find out what’s going on
These warnings should make you react and push you to change things quickly.
Starting with the analysis of what is happening find the cause the source of your problems.
When you know what’s wrong you can take action and start looking up.
But most of all you have to accept you have a money problem.
If you have already noticed, it will be easier to go ahead and get out of it.
On the other hand, if you practice the ostrich method or the Coué method, things will take longer.
This first step is the most difficult to overcome and you will see it soon the rest is quite simple 🙂
Finding the source of the loss in your finances is actually quite easy!
All it takes isdraw up a table of your cash inflows and outflows.
Thanks to him you will know it at a glance how your savings are used.
And then you will know the amount allocated for each expense item.
When you have never done this exercise it is difficult to know how to do it well.
Including how to build the board and what to put in it.
Rest assured I’m giving away one for free to all subscribers to the site newsletter 😉
So to receive it you just have to click on this link and register.
Find the right landmarks
Once you know what to do, you’ve already taken a big step 🙂
The next step is to impose what we have just learned.
Photo copyright: kyn_chung.
This is the most important but not the most complicated part.
Analyze the situation to take the best action
Now that you know what’s going on in your finances we can move on.
We will have to to examine your situation understand what is happening.
You will then find the cause or causes of your money problems.
And above all you can look for the best solutions and act accordingly.
The amount of some of your expenses will be literally jump on you.
As you put it more time to tick in small amounts …
This is completely normal, especially in the beginning because you don’t know how to analyze everything.
With experience you will come soon detect anomalies and deviations from your predictions.
It is necessary Be part of it between the different categories of expenditure.
Because some have it significant amounts but it is for everyone.
I am thinking in particular of everything related to accommodation and transport.
While the others go vary from person to person as a hobby.
You must therefore keep this in mind when analyzing your table.
feel free to annualize your expenses money to have a broader view.
In fact, you probably have payments that you make here and there but not every month.
Or small amounts that are billed every month and that you don’t pay attention to.
These two examples are the most dangerous because they are more difficult to detect compared to the other.
Yet if you pay € 25 a month for something, they still give you € 300 in a year!
Take back control of your money
Now that you know exactly where your savings are going, let’s see in order to act.
First of all looking at whether a expense item It does not appear excessive.
If this is the case, you will need to do something quickly to improve your financial situation.
For example, if you spend € 300 per month on your leisure activities while earning € 1200 net.
There is obviously something wrong and that’s what’s bothering you.
Because next to it you have to take on the cost of your accommodation of your captive expenses.
By acting on your hobbies you can do it quickly reduce your expenses and take control of your money.
So you have to face all the expenses that may be optimized.
And how are so many it’s quite a very good thing for you 🙂
You can start by looking at if your different contracts meet your needs.
It is something very simple but unfortunately few people take the time to do it.
Yet you can easily save several hundred euros per month.
There is a lot of money that you keep for yourself and that therefore goes improve your situation.
Once all this is done, you will have all the cards in hand to improve your finances.
You can go even further in your changes but they will be more impactful for you.
Because they will force you to ask yourself questions and do it act on your lifestyle in general :
- Isn’t your house too big for you?
- Is there a cheaper home that could make your daily life easier? (closer to work, your family, your friends …)
- Is it possible to take public transport to go to work?
It is therefore It is up to you whether you are ready to go that far or not.
Follow a marked path
Once you’ve done what we’ve just seen, the hardest part will be behind you.
It will just take let me take you And check May your money be fine too.
Photo copyright: José Asensio.
If necessary you will have to make some adjustments to your finances and that’s it 😉
Get back on track
When your expenses are under control, things are fine easier to manage.
You will see it after a while a pattern will emerge all alone.
That of your different categories of expenses and the associated amounts.
In fact, you will find that they are always sufficient closes month after month.
Thanks to this, you can definitely refine your different budgets.
And above all the compare to understand because they have varied a few times.
This will allow you to have a true one map your finances personal.
And so to anticipate and set a limit on various cash outflows.
You will then know it with an excellent precision your overall budget.
And you will be able to control that you make more money than you spend.
If that’s not the case, you need to check on which post you can save.
Since you make projections to see if this change has any real impact.
If it allows you to no longer be in deficit, that’s perfect and I congratulate you!
If not, it is absolutely necessary to do something reduce cash flow.
You can also increase your income but it’s a bit more complicated …
Personal finances with small onions
When you finally have a surplus of money it is a sign that you are almost there 🙂
Only vCheck that you can’t optimize a bit more the system.
Just to increase the amount of money you can keep for yourself each month.
You will then have your hands free repay your debts such as an overdraft or consumer loan.
By eliminating these loans that weigh on your finances and impoverish you things will get much better.
You can also start saving to provide you with a safety cushion in case of a hard blow.
This precautionary savings will be a real bulwark face adversity and unexpected life expenses.
You can then save for your different projects and so finally makes you happy after so much effort
The icing on the cake, thanks to your paintings, you can too anticipate expenses and foresee their effects.
I am thinking in particular of large purchases or major repairs that weigh heavily on your finances.
This will allow you to use your savings or excess money for the month very easily.
You will say then goodbye in the open and consumer loans to get you out of this mess.
So, whatever your situation at first, you will be armed enough to do it better manage your finances.
And next time that your budget will slip too far from your forecast you will know what to do !
It happens to everyone but the important thing is to do it looking up and of take control of your money.
Do you often lose control and manage your money and finances less well?