If you are spending time stressing about money, it’s a sign you need to bring your finances under control. Follow our for the steps on how to do this, and leave that stress behind!
Why you should bring your finances under control
When you bring your finances under control …
- You finally have your head free for other things.
- You’ll be damn proud of yourself.
- You will have new opportunities
- You will be a role model for others
- You can finally leave unnecessary stress behind.
The list could be continued forever… All in all, it gives you an incredibly valuable sense of freedom when you bring your finances under control!
13 simple rules
If you want to keep a firm grip on your finances, you should stick to certain rules. Here are the most important:
1. Be aware of your exact fixed costs
Fixed costs are the expenses that are definitely coming to you. In principle, all the costs for which you signed a contract.
Rent, electricity / water / gas contracts, telecommunications contracts, installment loans (car, mobile, home, miscellaneous debt), sports club or gym contributions, subscriptions to magazines, apps or services, etc …
Your fixed costs usually account for a very high proportion of your expenses. And these are perfectly plannable, so it’s not hard to pin down.
2. Write down each of your issues to help bring your finances under control
Even if it does not sound hackneyed at first: The most important tool to get an overview of your finances is the classic budget book . The whole thing does not have to be so dry on paper or in an Excel spreadsheet, because these days there are many great cool apps for the smartphone. Look which variant suits you.
It definitely makes sense to do this for at least a month to get a feel for your expenses. You just make the whole thing when you get used to taking the slip with you every time you go shopping, so you will not forget the writing down. Basically, it’s just a habit of building up, week by week spending is becoming more and more a habit.
3. Know your monthly balance
If you know your expenses and fixed costs, you can do a monthly balance. Monthly revenue less all expenses gives your balance sheet. This is your status quo. So you get a crystal clear overview of your monthly development. So you know where you are.
4. Build up reserves to bring your finances under control
In your life there are always bigger expenses. Every now and then the car has to go to the workshop or the washing machine breaks down. And if you have to handle those expenses completely the moment you occur, it quickly throws your finances off track. Your balance for the month is then quickly hailed. So be prepared and make aware reserves for such cases. Include such irregular issues and small emergencies.
5. Use different accounts
If you want to keep track of your money over the long term, you need different accounts. Because you also have different pots with different functions. If you make a reserve, you need an extra account. Many digital banks offer the possibility to create several subaccounts. These are perfect for such an order.
6. Automate your cash flows
Use your new account structures to automate your money. Set up standing orders for your planned reserves or savings . So you no longer have to worry about distributing the money. And if the money is already distributed directly, and is no longer available on your current account, is from your radar. You will hardly miss it.
7. Set financial goals
If you make good money with your money, you should be financially better month by month. That should be your goal in any case. But, that basically means that even with small steps you reach this goal. Add a Euro every month and you get richer. So it’s important to set bigger and clearer goals for you. Make it as concrete as possible. Set Milestones: When exactly do you want to own something?
8. Deal with your money daily
Every day, budget 5 minutes for your finances. Because if you do something everyday, it becomes a habit. Like brushing your teeth. When optimizing and planning your finances becomes such a routine, you will be able to realize success very quickly. It only takes a few small tasks, such as checking the balance, writing down your expenditures, planning the month or the next week, organizing documents, tracking account bookings, or reflecting your spending behavior.
9. Use cash whenever possible
Using cash has the huge advantage of giving you a much better sense of value. You can almost touch the value. You should have cash with you, just because money is important to you. So it will also be easier for you to have an overview of what you have and what you spend. If you pay the 90 euros shoes with card, you have little relation to the 90 euros. However, if you put a € 100 bill over the counter, you are much more aware of what is happening there.
10. Plan clear budgets for your expenses
An ingenious trick not only to keep control of your expenses, but also to give you the feeling of freedom in certain situations are: budgets. In concrete terms, plan fixed budgets for specific situations.
Example: You want to go to the zoo with your children and plan a budget of 100 euros. A visit to the zoo costs money – entrance fees, drinks, ice cream, popcorn for the elephant … If you have set a clear budget beforehand, you do not have to ponder and think about every issue. It is planned that these expenses will arise. If something stays behind afterwards, you can even be happy.
Exactly the same you can do when you spend a pub evening with friends or when you go on vacation. It will be so much easier for you to enjoy the situation because you do not have to brood about each issue, and you can clearly plan how much money it’s worth to you.
11. Think about your expenses now
Most buying decisions are made emotionally. You should avoid such emotion purchases more and more in the future. This is not your weekly bulk shopping in the supermarket meant, but especially impulse purchases. This form of buying is the reason that there are bargains. The advertising industry wants to tempt you to buy something on a whim that you may not need. With the fact that you have made a bargain, you justify the purchase in hindsight. Do you know that?
Check in the future twice whether you want to put on the pants, if you really want to watch the video course below, if you will also set up the decoration article for the apartment. Whatever it may be, get used to buying a night’s sleep. Especially on the Internet, you can still easily decide the next day for the purchase.
12. Get used to talking more about money
As you talk about money, you gain a new focus. Money is more important to you! Money is simply not important to most people. There is even money out there, in wide circles, as a taboo topic: “You do not talk about money” – Ever heard?
Rich people also have more money because they are more concerned with it and think about it carefully.
So find people in your environment who also pursue financial goals and orient themselves to them. Learn from their strategies. Pay attention to what these people spend their money on. Do not let yourself be distracted and inspired by people who only spend their money blindly and have no overview!
13. Never engage in consumer debt
Everywhere tempted the temptation: consumption on the pump. These days, you get some kind of installment or 0% financing on every corner. All these are debts . Consumer debt. That’s the biggest enemy if you want to keep your finances under control. So always give up on getting involved. If you do not have the money for an issue, you simply can not afford it. If you buy it anyway, you’ll be unbalancing the future of your finances.