“This year I won’t let the money run out of my hands,” says the classic New Year’s vow. We can become a financial expert with a few simple tricks. There are three pillars to the method:
reduce your costs,
increase your revenue,
invest the money you save!
You can significantly increase your wealth in just a year by paying attention to these few things.
Keep a record of your income and expenses!
This is the first and most important step. If you keep an eye on your spending, you’ll see where the money goes and where you can save.
It’s important that you keep your spending accurate, because if something is missed, the data you collect will be different from reality. Once you see the results of a month or two in a row, you will see the areas where you spend more than you should.
They are easy to use
There are several applications available today that you can download to your phone in no time, and they are easy to use. If you feel that none of the applications are customizable and that you have trouble using Excel, you can even create a customized spreadsheet for yourself. Or you can manage your finances in a plaid booklet: the key is to see what your money is going to.
Plan your expenses in advance!
In a well-functioning household, it is essential that you plan ahead with income and expenses. It is important that you know how much money you will spend per month and how this is in line with your earnings.
If you find that you are barely spending a few thousand dollars every month on the last few days, you may want to go through the costs and separate the fixed costs from the rest to see where you can cut back on spending.