Top 5 tips to get your finances in order

If you are wondering how to directorder in finances, which means that you have already begun to think about how to qualitatively improve your life. This is the first step towards financial independence and sound money management.

How to start organizing your wallet?

It all depends on the degree of "neglect" of the situation. For some, it will be enough to control the budget more carefully, and for some, it will be enough to completely revise their expenses, starting from the basics.

1) Keeping records is the basis of order in finance

Accounting for income and expenses is the prerogative ofonly companies and enterprises, but also ordinary families. If not families, then personally it is simply necessary to keep your own budget. In addition, make a payment calendar, where information on mandatory monthly payments is entered.

A detailed record of all expenses will help you understand in a month exactly where your money goes, what you spend your hard-earned money on.
It is important to consider not only expenses, but also income. So, you can correlate what you get with how much you have to spend or have spent.

Budgeting is based on the principledistribution of finances over several categories of spending. It is simply impossible to completely ignore expenses, so the expenses themselves are divided into categories: mandatory payments, food, transport, clothing and footwear, a pharmacy, and so on. Naturally, the largest amount should be spent on mandatory payments, and you can calculate it in advance. The rest of the directions, which are not mandatory, can be controlled by you, that is, you can determine the maximum possible amount that you can spend this month on products or entertainment.

2) Make financial plans

Financial planning helps you achieve your goals, even big ones. It is difficult to save and save when you do not see the point in it. But correctly set financial goals are an incentive to move.

Plans are made for a month, six months, a year. You just need to calculate the cost of achieving your goal, distribute the amount received over the entire period and start saving.

3) Create an emergency fund
Go to building up a sufficient reserve fund to support you or your family in case of unforeseen circumstances.
Sufficient amount of reserve for everyone. Let's say a reserve in the amount of several monthly salaries is the minimum you should aim for.

4) Learn to deal with debt and avoid getting into it in the future

Credit is not a way to achieve what you want.A financially literate person will not take out a consumer loan for a purchase, but will plan a purchase and start saving for it. Yes, it will take longer, but as a result, you are left without debts and with the right thing.
Not a single loan can be called profitable. No credit card is beneficial to the owner. “Favorable” conditions are just a trick of banks, it does not bring any benefit to the client.

If the situation is so neglected that you are literally in debt, the second step on the path to financial order should be to draw up a plan to get rid of debt.

5) Set no-spend days to cut spending a little

When there are too many expenses in your life -fancy shoes, a cool game console or a latte from a coffee shop around the corner - your debit card needs a break. These no-spend days will wean you off impulse buys that you may regret later. If you see something that you want to buy, you will have to wait until the next day - during this time you will "cool down" and decide if you really need this thing.

Start small and set two free days per month. If this method works, and you want to increase the number of "fasting" days, increase them to one day per week.

Invest in yourself
"All the money in the world doesn't matter if younot healthy enough to use them. Good financial habits also mean you know when to invest in things that will help you lead a more fulfilling and happier life. In addition, when you feel good, you will make better decisions about where your money goes,” says Sergey Solodkiy, Head of Consumer Protection at Roskachestvo.

Source: Press Release Roskachestvo