Personal finance tips

All people - are completely different. We all have different lives, different interests and different professions. However, there are universal things that people face every day, and for each knowledge in this area are needed. I'm talking about the field of personal finances, which is involved in each. Whatever people involved, whatever the profession and its main area of ​​interest, personal finance is still there for each and, therefore, competent management of personal finances - it's a problem that faces everyone.

To keep your personal finances in order is very important not to be too lazy to make a personal or family budget - not the most exciting thing in the world, but to make it absolutely necessary. It is necessary to gather as much financial information about their expenses and income so that your efforts to prepare a personal budget failed. Ideally, spending time and energy to this work, you get a document from which you can see where your money is coming, how many you have, and most importantly - where they go.

How to make a personal financial plan:

Gather all your financial "accounting documents", which you can. Specifically, statements from your bank accounts, utility bills, receipts from stores. This is to as closely as possible to calculate your monthly income and expenses.

Write down all your sources of income. If you regularly get paid while your taxes are deducted automatically - in the column "income" only write the final amount you will receive "hands on". If you're self-employed or have some additional sources of income, then make sure they are all carefully considered at this stage.

Make a list of your monthly expenses. Record all items of expenditure for which plan to spend the money within a month. These include: the cost of a car, clothes and food, utilities, recreation and entertainment, loan payments, long-term savings for the purchase of real estate or children's education and so on.

Divide expenses into two categories: variables and constants. Fixed costs - those that are absolutely necessary to maintain your lifestyle and remain more or less stable every month. Save on these expenses, as a rule, it is impossible, and significantly reduce their budget planning - is practically impossible.

Your variable costs - those that can vary each month. These include: the cost of petrol, leisure and entertainment, eating out, gifts, etc. This category of costs will play a big role in your personal finances when you "adjust" your personal budget in order to "fit" to the income or expenditure send more money to "priority" items of expenditure.

Summarize your monthly income and expenses. If it happened that your income exceeds expenses - then you are on the right track. Excess of income you can send on savings and investments. Conversely, if your monthly expenses greater than revenues, it will necessarily have to cut spending, and it can be painful.

Adjust your spending. If you are in the previous steps carefully identified and recorded all their sources of income and expenditure, but now need to ensure that expenditures are equal to revenues. This would mean that all your income is taken into account and planned for any particular item of expenditure. That is, Money will not be able to flow away in an unknown direction. If you are sure that your expenses exceed revenues, then at this stage to look at variable costs, to determine at what you can save. Since variable costs - it is not essential, you will not be too hard to decide which variables you reduce costs in order to live, "Tools" and without any financial problems.

Keep track of your personal finances. Revise your personal or family budget each month. It is important to regularly review your budget to make sure that you have not gone astray. At the end of each month, take the time to compare the actual costs incurred to the fact that you are pre-planned in the budget. This will show you what your financial "strengths" and what you should have to learn.

In addition, it is important to consider the fact that if in the management of personal finances do not use the tools of preservation and growth of capital, all of your accumulated savings will be devalued by inflation. Therefore, having established records of their income and expenses, you can start thinking about where to invest "free" money. The most common tools for the preservation and growth of capital are financial instruments, real estate, precious metals.

From financial instruments for the conservation and enhancement of capital is to provide bank deposits, stocks, bonds, real estate, precious metals, mutual funds, futures and options.

The simplest investment, which can take an investor is putting money on deposit in the bank. In this case, the investor opens a deposit account, which puts their money. Subsequently, its contribution to the accrued interest. The risk is always proportional to yield. The risk of deposits is small - the profit is also small. At the current rate of inflation, bank deposit allow investors to receive returns at the level of inflation or a little more.

For the higher income you can learn to invest yourself, looking for the most attractive areas of investment. For example, the stock market.

Return on investment in self-management to a large extent depends on the level of knowledge and skills of the investor. Despite this, the greatest relative yield while maintaining acceptable risk can be achieved only in self-management of your finances. Only self-management allows you to quickly make decisions regarding the structure of investment funds. Among the advantages of self-investment opportunity of control over risk, liquidity, investments, and the ability to withdraw part of the invested funds for urgent needs almost immediately, when it will be necessary.