5 tips for organizing personal finances

There is no magic bullet to solve all your money problems, but you can start with these simple ideas for organizing your personal finances.

You must have stopped one day to take a look at your finances and felt that sadness when you realized that there was  month left at the end of the salary . Yeah, I guarantee you’re not the only person who’s been through this.

The great truth is that it doesn’t matter if you earn a lot or a little money: one hour the  bills  will arrive. Whether it’s rent, electricity, credit card or even the money you spend on a daily basis, it’s important to have a good financial organization so that you can both avoid difficult times and reach your goals.

Although there is no miracle or magic formula that will solve all your financial issues, the bright side is that you can start making simple changes in your life  today  that will help you better control your money.

In this text you will find some simple tips to help you in this mission, but before starting I want to reinforce the  most important thing : dedication. Organizing your finances is nothing out of this world, but you need to make a real commitment to achieve real results.

No more ado, because  time is money . Here are 5 tips for organizing your personal finances:

Personal finance tips

It may seem obvious, but it’s exactly because it’s something so simple that a lot of people end up forgetting to do a real control of everything they earn and everything they spend. Of course, it’s easier to be aware of all the money we earn, but it’s also very easy to get lost in small everyday expenses and only later realize that they accumulate in gigantic amounts over  time  .

Nowadays we have several services that are already part of our  routine  and that we end up not even seeing when we are charged, especially speaking to those who use a credit card. The streaming bill that arrives every month, the ride on the transport app, the gym membership that you don’t even go to anymore… the examples are many.

Knowing exactly what your income and expenses are will help you avoid spending more than you earn, a  golden rule  for anyone who wants to maintain personal financial health.

There are several ways to maintain this control: financial spreadsheets, notes in notebooks, etc., but a practical and quick option is  personal financial control platforms .

Set goals and objectives

This tip makes even clearer the  importance of dedication  that I mentioned at the beginning of this text. When you set goals and objectives and really commit to achieving them, it becomes  much easier  to know how to spend and how not to spend your money.

It doesn’t matter if your goal is something simple like buying  new clothes  or complex like  traveling abroad , what really matters is that you set an important goal to be achieved after some period of time and keep your focus on that.

Knowing that there is something that really motivates you to go after it, you will always stop and think twice before making any unnecessary expenses. That’s pretty intangible advice, but if you really  dedicate yourself  to reaching that goal, the impact on your life will be evident.

Search before buying

It may be that you have already stopped for some time to look for alternatives when you are going to make a higher-value purchase, such as a cell phone or a computer, but it is not just at these times that research can help you  save .

A good example that is part of our daily lives is going to the  market . You slowly fill the cart with all the things you went to buy and when you get to the checkout it doesn’t even seem like the number on the screen matches the few products you picked up.

Always stop to look at alternatives, check out other brands/suppliers, see if there are any promotions going on or anything like that. You can find products in  different  packaging sizes that end up compensating more according to their use and helping to save money in the end.

Keep an emergency reserve

Almost last, but not least, don’t forget to always set aside  part of your income  for emergencies.

All the tips so far have focused on helping you save money or spend less than usual, but it’s important that you also build some financial slack for when something  more serious comes up in your life .

Build this reserve considering  your own spending profile , guaranteeing, for example, three or six months of security in which you will be able to meet all your financial commitments even if no income comes in.

It is important to know that this money is  exclusively  saved for unexpected cases. Don’t spend any of it unless it’s strictly necessary, so you get more balance and peace of mind so you don’t go through any big squeeze.

Invest in your personal development

And the final tip, which is almost a bonus tip, is a little different from personal finance, saving, investing, etc. and it’s about investing in ourselves. You can be sure that one of the main levers we have to be able to save more money is to be able to earn more and one of the ways with the highest return for this is not to leave our professional life aside.

Taking a course, learning a skill that gives you a 5% increase in salary, is much more powerful than most investment returns. So even if you invest in financial products, don’t forget to develop your own skills and knowledge, okay?