2021 is about to end and, although it passes like a sigh, like every year, finances may not be as good as in previous years. Therefore, it is convenient to apply some personal finance tips for 2022.
In case you do not know, the organization, together with the forecast, may be the most important element to ensure that you do not lack financial solvency for next year. Hence, in these last months of the year more people worry about whether they have a payroll account, more affordable financing or an investment that can pay off. But how do you do it? Here we will give you some tricks so you can plan your finances.
Make a list of expenses and income
First of all, we must know what we start with. That is to say, what income comes to us and what expenses we have.
So, make a list of all the monthly income you have. It is important that you tell everything, although we know that, sometimes, there may be some extra income that will always come in handy.
On the other hand, you have to make another list with all the expenses. Everybody. Without exception. Like the income, surely there are some unforeseen events, such as the car breaking down, the dentist having to pay or whatever. Do not worry that you will take it into account later.
And why do we want a list of expenses and income? First, what for be aware of what you have and what you spend. This visual form can help you know if you spend more than you charge, or if you charge more than you spend. And it is the first step so that your personal finances have "body" and you know if you save or waste.
But there is also another reason for this: that you can set a budget. And what is that?
Imagine that you charge 1000 euros in income, and that you have 500 euros in expenses. That is, you would have a saving of 500 euros per month. Now, it does not mean that you are going to save all that money (actually you could), because surely from time to time you want to indulge yourself. But it is convenient that you save part of it because that will be part of a contingency in case you ever have an unexpected expense.
The envelope trick
When it comes to programming your personal finances, one of the methods that works very well is that of envelopes (which can actually be done fictitiously if you don't have physical money).
One envelope will be that of income. And then you have several envelopes: one for expenses, another for contingencies, another for whims, and another for savings. What you have to do is distribute the earnings you have in the different envelopes month by month. Thus, at the end of the year, you will have money saved, and much healthier personal finances if nothing serious has happened.
Avoid over-indebtedness
This is somewhat more difficult to achieve, but for the sake of your economy, you must be clear about it. And is that when you have a credit or debit card, or a bank account with which you pay everything, it is more difficult to control expenses and sometimes you end up over-indebted.
What does it mean? Well, you have spent more than you earn. If you have savings, nothing happens, although it would reduce that economic mattress you have; But what if you don't have it? You would enter the so-called "red numbers." And nobody wants to be in them.
So, as far as possible, control your expenses well to avoid this problem.
Financial education, a very important aspect that nobody talks about
In personal finance, the only things that are well known are income and expenses. That is, what is earned and what is spent. There's no more. But the truth is that if you want to save and invest wisely, it is very important to have a basic financial knowledge.
This way you can handle your bank cards much better, you will know which is the best bank account for you and you will also be able to speak with some more knowledge with banks to choose the best financial products.
If you do not have that knowledge, you will simply trust what they tell you, but will you save? Possibly not.
Get a salary with the products you no longer want
In personal finance, one way to earn extra money is through those elements that we no longer want, that we do not use or that we do not need. That is, we become sellers to get money from what only accumulates dust in your house.
Believe it or not, it is a practice that has become fashionable in 2021 and in 2022 will remain the same, or even more on the rise, so it may be a good idea to make a list of products that you no longer want and are taking up space in your house. On the one hand, you will earn money if you sell them; and, on the other hand, you are going to get space for yourself.
Anticipate your extra expenses
Yes, we know, how are you going to anticipate if you don't know what expenses you are going to have? It's true. And at the same time it is not.
There are a series of expenses that we are known to have, which are not the normal ones, and which occur every year on the same date: the summer and your vacations; Christmas and gifts; that Valentine's Day and the gift you have thought of… Do you understand? Those expenses are extra, yes, but they can be anticipated.
And that's where the organization itself comes into play for, A few months before, start saving, for example with another envelope, for that special thing that arrives. We can do the same with the sales season, with Black Friday, Monday Blue and other events where, in the end, we bite to buy something.
Automate savings
In Banks can ask them to transfer a portion of the income to a savings account. That means that when you see your account, you will not see that 10% and you will not have it. In the long run, those savings can make for a fairly comfortable mattress in case anything unforeseen happens.
As you can see, there are many tips for your personal finances that can make you come out of 2021 better and that 2022 does not become another slab, quite the opposite! You have doubts? Let us know and we will try to help you.