Are you constantly stressed while impatiently waiting for your next paycheck? Despite a steady salary, are you still struggling to make ends meet? A great difficulty to carry out your projects for lack of means? What if now is the time to put your personal finances in order to have some stability? Get your finances back on track by following these 4 key steps.
Take stock
This is a crucial exercise that allows you to have an overview of your expenses in relation to your income. At this stage, you need to make a list of your assets (assets) and your debts (liabilities). . If your net worth is positive, you can think about saving money or planning projects. If the result is negative, it is imperative to straighten the bar and liquidate your debts.
Build a budget
It is also essential to draw up a budget so that you know where your money is going. Budgeting involves making a list of your income and expenses each month.
Why draw up a budget? To know where your money is going and to have control over your expenses. You can do this towards the beginning or at the end of the month. Determine your fixed expenses (rent, automobile, food, electricity, taxes, etc.) and your variable expenses (travel, leisure, etc.). Then do the balance sheet by subtracting your total expenses from your income. If the balance is positive, you have the possibility of making savings otherwise it is advisable to determine the expenses which can be reduced to balance the budget.
Repay debts if any
Loans to cover every month? Try to repay them as much as possible and avoid accumulating credits. Consider resorting to credit buybacks to repay his debts is a decision that could be perilous so the best thing is to try to deduct the debt from his income or make early repayments if possible.
Make savings
Saving is getting rich! It is also a way to build financial security and have some savings for contingencies and future projects. Conversely, not having money aside can be truly catastrophic in the event of illness or job loss, for example. Saving also prevents you from having to resort to loans. By making a systematic saving, you via a direct debit from your bank account, you could more easily adapt the remaining sum to your expenses.
