Have you ever come to the end of the month with empty pockets? Every day we are faced with the challenge of keeping our finances healthy, but many times we spend money excessively without keeping a conscientious control of how much and how to spend our salaries.
There are common mistakes that we don’t even realize affect our financial stability, some of them are
Spending more than you earn: This is when the debts that come up heavily at the end of the month come up when we no longer have anything in our pockets and proceed to borrow from friends or family, these are very bad if you use them to pay for your basic needs because they should be covered by your salary. Debts are not bad if they are rational, planned and used for investment.
Have everything in the latest fashion: We think about having the designer clothes, the most luxurious car, the most exquisite dinners, the latest mobile phone, NO! You should have the best possible lifestyle according to your salary, we should let our finances decide our lifestyle.
Not having clear the basic expenses: The basic expenses are the first that we must fulfill not to fall into the two previous errors, because here is where the debts arise and instead of covering the needs of the day to day we choose to buy unnecessary things.
How to solve it?
- Create a budget with basic expenses: I learned this by living alone, when you must be responsible with every expense to live, this tool ensures that we do not spend money we do not have. Among the indispensable basic expenses:
- Food: A weekly or biweekly amount for your meals and remember that it is much better to cook at home.
- Transportation: Know clearly how much you spend monthly on transportation to get to work, you can also use a bicycle or walk.
- Health: We should always have health insurance, when we are salaried employees the companies try to have our doctor, but when we work as freelance we should try to have health assistance, because if we get sick it can be more expensive than the same insurance.
- Take control of your leisure time: Eating out all the time is very expensive and even bad for your health, try to have your meals measured and a couple of times a month, if you cook at home you can save money for any craving you have.
Compare prices and take advantage of promotions: take advantage of the low price seasons to buy utensils for the house and clothes, it is not a good idea to buy at the beginning, middle and end of the year because it is holiday time and holidays, everything increases in price.
It’s all a matter of carefully managing money and prioritizing, without neglecting our personal tastes. Tell us, what do you spend a lot of money on? What have you done to try to improve your finances?