How to spend money – budget planning secrets

You know the problem of eternal drawback of money? Often the reason for the problem lies not in insufficient earnings, but in the wrong spending. Learn how to spend money

«To sell something unnecessary, you must first buy something unnecessary, and we have no money for this». M / F «Three from Prostokvashino».

How to spend money? At first glance, this question causes a smirk: tell me how to earn, and how to spend, we will somehow deal with themselves. But any economist will tell you that profit is your income less about your expenses.

Thus, reducing costs, we increase profits, released funds for all sorts of pleasantness. Having learned to spend money correctly, you can enable yourself much more with the same income. It sounds tempting? So learn to spend correctly.

Money Makes The World Go ’Round

Agree, money is a mysterious thing. Here you earn it like nice, plus the husband earns even more, plus bottles every month we pass on a solid amount, where the money goes? That the bottles are not about you, but the money goes away anyway? Then we will understand.

Still, money has a certain magic. After all, as otherwise, explain that a completely unnecessary thing becomes a measure of all material. In the era of the great geographic discoveries, the sailors returned from the distant swimming pools were told «Land rats» about stupid islanders using shells as money.

That would be surprised to find out that in just a couple of hundred years, their compatriots will be in the position of the same «Stupid Islanders», and full-fledged golden ducts and piastra they will replace not seashells even, but multicolored papers.

But on this, the wonderful transformations of the money did not end: the total adhesion of everyday calculations occurs literally before our eyes. The last material incarnation of money – plastic card, years have been released.

Inexpensive mobile fingerprint scanners or drawing of cornea eye will make a plastic personification agent excessive. In the information era, the money themselves will become, in the end, the purest information.

However, with all this, such a magic object as money is subject to the firm laws of mathematics, even the simplest arithmetic. So, in order to understand the ways of movement of money, the magic will not be useful to us, enough course arithmetic levels of the junior school.

Where money goes

In order to learn how to spend money correctly, it is necessary to understand how we spend money now, that is, answer the sacramental question – where money goes. Despite all the magic halo, all their behavior is described by two arithmetic effects – addition and subtraction.

We have the remainder at the beginning of the period, add all incomes for the period, we submit all the costs – we get the final balance. We subtract from the final remainder initial if the resulting number is less than zero, it means that we spend incorrectly. Here, actually, and all accounting.

On this, our unwitched story could be finished if the bulk theory did not come across a severe truth of life. Smoothly on paper, but forgot about ravines.

Structure of spending even a small cell of society with an average income may be such a branchist, confused and diverse that the damn leg is broken, and if you are asked to write spending on paper last month, the result is likely to be something like:

• 100 rubles. – Food for a parrot;
• 58342 rub. 32Kop. – different.

Therefore, let’s start with the introduction of the accounting system. The modern market provides quite a few specialized home accounting programs, mainly for mobile devices.

A detailed analysis of these programs is not included in our task, but the author at one time was interested in the question and can declare with all the responsibility: there are practically no sensible among them.

Still, the calculation of the activities of the commercial enterprise and family life activity have some differences, we usually offer a certain «1C-Happy family v7.7». Better do not waste time and money, I suggest you another approach.

To begin with, divide all spending by category, ranging from the most important and ending with optional:

• Full diet, mandatory regular payments like payment of kindergarten, sections for children and t.NS., Travel to work-with work, utility payments, emergency stock, loan fees. In no case cannot be transferred to a category of less importance, swear by itself will pay doubly in the next period. It costs a couple of times to do, and welcome to the debt hole. Though in our time, the debt is a virtual phenomenon, but it is really difficult to get out of it;
• Clothes-shoes, planned upgrade computer, iron horse maintenance, planned medical procedures (for example, regular inspection at the dentist and «female doctor»), hike in a hairdresser and t.NS.;
• Accumulations on the car, new gadgets, vacation, repair;
• Hiking in cinema, cafe, buying baubles, new books and other, other, in general, everything else.

Of course, the distribution of expenses is approximately, for you, different costs can be distributed as important in a completely different way, for example, the purchase of a book can be more important than the upgrade of the computer and T.D.

In addition, there are irregular, but important spending, like the birthday of beloved mother-in-law, the cost of a gift for which is sent straight to category №1. All sorts of force majeures may also arise, exceeding emergency spending from the first category, but at the same time completely urgent.

With the structure of spending we figured out what’s next? Yesterday not to return, but for the day you can influence tomorrow and you need. As you already guessed, it will be about budget planning.

We plan to budget

The methods offered to you, of course, is a recommendatory character. It is possible that other ways will personally be convenient for you. But this method went checking time, and it may be useful to you.

As already mentioned, special programs for budget planning with their task are coped to the troechka. But this is not at all reason to give up modern technologies at all.

Best budget friend – spreadsheets:

• To begin with, we need to make a table in which there will be only two columns – «+» and «-». In column «a plus» We will imply all our income, and in «minus» – planned costs for the period. As a rule, in our conditions it is most convenient to take a month as the main reporting period. But if you wish, you can plan a budget for two weeks or a week. Rows of the table will be sources of income (salaries, part-time, pensions, benefits and t.D. all family members), as well as the categories of spending that we discussed above. Immediately with the help of spreadsheets «Wearing» amount on both columns and display the difference between them;
• We begin to fill out a table with income. After writing all types of income, we will eventually see the cumulative family income for the period;
• We introduce the planned costs in the table, starting with the first necessary category. As it fills it will be clearly seen «tanya» Amount of family;
• Fill out two first categories you can do some conclusions. Perhaps some optional spending it will be necessary to refuse already at this stage;
• Fill the table to the end and draw conclusions. If the amount of income and expenses are positive – wonderful, zero or about – also well. But if the amount is noticeable negative, it means that your family spends money wrong – «Does not fit» in the budget.

In this case (if we assume that the increase in costs is impossible under the condition of the task), one way remains – spend less money. Getting started «Cut» expendable («minus») Part of the budget. The costs of the first category do not touch in no case, the second category concern in extreme cases. The third and fourth remain.

Of course, the easiest way is to cut the fourth category, but, as a rule, it is there that are a variety of little things, which are delivering to life joy. Therefore, it is better to combine «circumcision» The third and fourth category of expenses.

So we can not only go out «on zero», but also to redistribute funds in the desired way.

We looked at tactical planning, allowing you to stop spending money, But in no case should also forget about the planning strategic, allowing to find funds for serious spending for a year and more. But we will talk about this next time.