Taking control of personal finances is a simple habit, but it can make all the difference in the way you handle money. By managing what goes into and out of your checking account and what your credit card expenses are, you can balance your finances and get enough money to get rid of debt, fulfill your dreams, and achieve financial security regardless of the salary you receive.
In addition, you have more peace of mind by knowing exactly what your financial situation is and what needs to be done to improve or maintain a sound financial situation. Check out the benefits of a personal finance control:
Provides a more balanced life
Spending wildly is one of the main symptoms that your financial life is not balanced. Anyone who has overpayments on credit cards, buys more than their income allows and pays unnecessary fees is far from having a balanced financial life. The imbalance also appears in wrong decisions regarding investments and purchases, such as opting for devalued stocks, making mistaken car exchanges, among others.
This scenario changes when personal finance control comes into play. Creating the habit of analyzing how much you spend and, especially, what you spend, leads to smarter and more balanced financial decisions, since goals and dreams are taken into account and, consequently, consumption is done in a more conscious way. in view of what you and your family wish to accomplish.
Helps conquer your dreams and goals
Planning the future is essential to conquer your dreams and goals. With the control of personal finances, it is easier to have a clear vision of what you want to accomplish and, especially, what you must do to achieve what you want.
Money management helps you identify how much you have available to fulfill a dream, such as entering your home or making a great trip, and the expenses you can cut to save monthly to get the amount you need to make that wish .
It does not let you have that doubt about where the money went at the end of the month
It is not uncommon to get to the end of the month almost in the red and have no idea where the money went. This doubt ceases to exist when the control of personal finances becomes part of the routine.
By writing down all the expenses and especially by categorizing them, you begin to track exactly how your money is being spent. This helps to put your foot on the brake if you are overcharged in a certain category that is not essential (such as leisure, bars and restaurants etc.) and, over time, if necessary, change the way you consume.
Helps to cut unnecessary expenses
Most people know they have a lot of unnecessary day-to-day spending, but many of them do not know exactly what they are. With the control of personal finances is more identify the expenses that are not essential to keep and / or are being made in excess and can be cut.
From the gym you never go to the unknown fees charged in the checking account and the credit card, going through the expenses that you do not even know why you did it: in large part of the personal budget there is potential of saving and cutting expenses.
Avoid interest and debt
One of the biggest villains of healthy finance is interest. Some are louder and more problematic, such as those charged when you only pay the minimum credit card or use the overdraft. Other, lower, such as the delay of light bill or IPTU.
However, regardless of where the interest comes in, with the control of personal finances and effective money management, you learn to avoid them and balance your checking account. By keeping your finances under control it is also possible to avoid debts as you learn how much you earn, how much you spend and how much you can reserve for each expense.
Can be programmed to save
Control of personal finances and planning go hand in hand. Anyone who happens to manage their money wisely consequently plans better in what budget categories will use it.
Separating part of your monthly income into an emergency reserve or investing becomes a natural thing, and once you get paid, you already know that a part will go to the contingency fund or to long-term investments.
Has less stress
There is nothing worse than being apprehensive every time you use the credit or debit card, not knowing if there is balance or limit to make a purchase. By making personal finance control a habit, you get to know exactly what you have in your checking account and how much you spent within the credit card limit.
Anyone who has gone a little further and is planning to create an emergency reserve has an even better quality of life: he knows that he has where to take money if there is any unforeseen event such as an illness, accident or any unexpected expense.
See control tools that help you control personal finances
Personal finance control gets simpler and faster when you have the right tools to help you with this mission. It is possible to manage money in some ways. From the most prosaic, with the good old expense notebook, through spreadsheets in Excel and online financial managers.
Who wants to control finances even more uncomplicated can invest in an application like the Ramsay family, which is fully automatic, that is, you do not even have to remember to write down expense spending.
Just enter your internet banking data and the tool lists all the transactions you have made in your checking account and credit card, automatically categorizing expenses. Thus, it is easy to know where it is possible to cut spending and identify potential savings.