budget – Passive income

6 tips for improving your family budget

By MPI26th March 2018Smart moneybudget, expenses, family, financial education, financial freedom, financial goals, investment, needs, savings, wishes

In order to be able to draw up a budget of incomes and expenses as accurately as possible, it is best to keep our daily records of spendings so we don’t omit anything. That’s why we can use more tools, either to write daily spending on an agenda at the end of each day, or to use an app on your mobile phone that you have at your fingertips at any time, and we can write down the expenses as we perform them, either use an excel file, so we can personalize it to fit our needs better.

A great deal of daily spendings goes on various occasions, such as snacks during the day or city walks to a coffee. Do not omit to keep track of these costs because at the end of the month you will realize that they will weigh heavily in the budget and you will wonder where the difference is.
For a better financial discipline, it is a good idea first to achieve a forecasted revenue and expenditure budget and then to draw up the budget actually made to figure out what is the difference between estimates and reality, and so you can improve your financial behavior. The forecasted budget can also be considered a target for your budget and try to fit into it.
Every month, the first expenses we have to make are the ones for our future, this are the sums allocated to savings and investments. After making sure that we first saved the amounts proposed, we can only then make the fixed costs that if we omit them in a month they will attract interest and penalties. Finally, we can allocate the difference for variable expenses.
As with fixed costs, to ensure that we do not postpone savings by the end of the month to see if we still have resources available for them, we can set automatic payments to our savings or investment accounts and so we will have better and better financial results.
To ensure that unforeseen expenses do not affect your monthly budget, it is advisable to have an emergency fund of at least 3-6 salaries that you can use only in emergency situations. This way, you will surely know that no matter if your car breaks down or you have an urgent medical problem, you will be able to resolve it without borrowing or delaying until you have the financial resources to solve the problem.
To improve spendings, try to divide them into expenditures that represent needs and expenses that are wishes. Start budgeting all the time by analyzing your wishes and see which ones can be eliminated for better long-term results.

Ultimately, the purpose of our revenue and expenditure budget is to manage our financial resources more efficiently. It is important, after realizing the family budget over a period of several months, to analyze its evolution in order to improve our financial behavior in terms of cost reduction in order to save more and ultimately invest in order to reach our established financial goals more quickly.

Salary too small? Here’s how you can handle it more easily

By MPI2nd August 2017Smart moneybudget, money, pay chek, salary, save, small, smart

Almost all of us have been through a period of financial instability when you have a too small salary and you can not pay your bills anymore. However, there are people who can handle such situations. An impressive number of people have a small salary and they live from one month to the next with just that money. If you want to know what you should do when you have too little money, read the tips below:

Follow a monthly budget

Try to watchevery month the way you spend your money and sources of income. Once you have an idea, manage your expenses carefully and exclude those that are unnecessary. Every month analyze how much money you have and what are the possible costs that may occur. Prioritize your bills and debts.

Be prepared for unprepared urgings

We know that when you have too little wages, you do not want financial emergencies, but such things happen to us all. Besides the monthly budget, from the little you are trying to put aside the month after the month, you must save for the financial urgencyes. Saved money will help you get over heavy times without spending too much of your personal budget.

Try to reduce your monthly expenses

You may not have realized, but the services you call monthly may be cheaper than you have now. Change your TV and even electricity suppliers if you can. In the long run these changes will feel in your pocket.

Borrow smartly

If you need money to pay an emergency bill take an online loan. However, try to borrow only in urgent situations, when you have to pay bills that do not support postponement, such as when you have ruined your household appliances, or at other similar moments. Making a credit to buy a perfume or to make a gift to a person is not necessarily the best idea. Make sure the reason for the loan is good and real and be objective when making this decision.

Find long-term solutions

It is very nice to know that you have a big amount of money when your monthly salary is low. Even if the temptation is great, do not resort to methods that will leave you without money in the coming period. For example, do not pawn your personal objects that you are very sentimental off. You will want them to be returned, but you may not have enough money to take repossession of them. Rather, look for another part-time job or do something that you are good at, but well payed.

Which of the above ideas seems the most appropriate to you when you have too little a salary?

Little money or … poorly managed? 6 mistakes (and solutions)

By MPI18th July 2017Smart moneybudget, manage, mistake, money, personal finance, smart

How many times did you say to yourself : “If I had more money, then everything would be fine …”?
Well, if you were to have a brief analysis in the last year or the last 2-3 years, you probably have had “more money” and your income has been rising.
Something has changed?
Many people set a certain amount of money when they would have enough, they say, but when they ritch that amount, her/she observes, paradoxically, that it is still not enough and that they should have … much more.

Why is this happening?
Because the lack of proper financial management leads us to spend the more money that we have at our disposal.
We live in a society where consumption is promoted, even in an exaggerated way. You rarely happen to wonder why you bought a beautiful but unnecessary thing …

If you recognize yourself in the above ranges, then you are likely to recognize yourself in the following, where we underline only 6 of the most common mistakes we have noticed:

1. You are not setting up a budget

If you own a business or have a marketing affair, you probably planned a budget for an investment or a specific activity at a certain time. Setting up your budget helps keep your finances under control. You are the master of the situation. You will not be driven by money, to the intention to spend without measure and the panic of staying without money after. So when it comes to a new home purchase, a vacation, buying a car, just set the amount you can fit. And the amount will be set based on the market price in line with the financial resources you have. So, the ideal is not to face a big budget hole after such a purchase.

2. You do not count on what you’ve spent before

When you spend on impulse, you ignore the overall picture. You go shopping and finally you realize that you have bought too many things (and implicitly, that you have spent too much). Ideal is to remember your purchasing history.
For example, if you bought a new phone this month, do not buy a new tablet. It’s possible that the two acquisitions together to make you a big hole in the budget. Another mistake is the purchase of similar products in a short time. Or in the early replacement of objects / equipment without necessity. A better management of the money you have can make the difference in the lifestyle and what you can afford.

3. You use your credit card to the maximum

If you own one or more credit cards, do not use them irrationally because … you still have to pay them. As said above, the ideal is to set up a budget for what you need and not to exceed certain limits.

4. You live a luxury life on a low-cost budget

It is good to dream and have high aspirations. But at in the same time, it’s good to be realistic. Especially when it comes to the money you have.
Do not try to live a life of luxury, as long as your budget is falling at to a low-cost …
There are people who spend their wages in two days and then have to live until the next salary. Better try to save, in order to allow you moments of indulgence from time to time. And in the long run keep your realistic sense and do not put you at higher expense than you can take.

5. You do not save

We think we do not have enough money to save, but the more money we gain, the more we spend.
So, you can think that you may never have enough so that you can to put something aside.
When it comes to saving, do not think of colossal amounts. Any cent set aside is an economy. In addition, it is important to learn the habit of saving so that it becomes an integral part of your life and of your family.

6. You ignore your debts

One of the biggest mistakes made when it comes to money is represented by … ignoring debts. If you do not take them into account, that does not mean they will disappear on their own. Worse, they multiply. If you have a debt to the bank, interest rises every day. If you have a debt to someone else, it will not raise interest, but it will increase the frustration and mistrust as far as you are concerned. Do your best not to have any debts. There are psychic pressures that make your plans go worse.