How to manage your personal finances

At the end of the month, it is important to take stock of your family budget. If you have written everything down, it will be easier. Otherwise, you will have to take your account statement online and list your expenses and income. Organizing your budget allows you to better anticipate future purchases and manage unforeseen events more calmly. Here are some tips and tricks for managing your personal finances.

In my article managing your family budget: where to start, I explain how to organize your family budget daily. Now let’s see some tips to manage your expenses and your income to live better with your money.

7 basic reminders to manage your expenses and income:

  1. I assess my income (salaries, bonuses, allowances,etc.)
  2. I establish the monthly schedule of my fixed expenses
  3. I add the amount of precautionary savings (see below)
  4. I determine the number of my current expenses from the data of the previous months
  5. if possible, I withdraw this amount in cash
  6. I devote a part to occasional expenses and my project savings
  7. and above all, I establish my budget regularly, at least once a week

4 tips for managing your personal finances

1 / I organize my bank account

You have of course kept your account statements (to be kept for 5 years). Note that more and more banking establishments offer and e-statements, which are archived for a few years. So you just have to collect them, staple them (it’s easier), then sort them in chronological order (ascending or descending, depending on your preference).

Some simple tips for organizing your family budget :

  • conscientiously fill out the stub of his checkbook (indicating the date, subject, amount, and recipient of the check);
  • keep your purchase receipts in a safe place (bank card tickets should be kept in an envelope, in chronological order);
  • mark each month his account statements (write down next to each debit or credit, its purpose).

2 / I limit the use of my credit card

Payments in cash should be preferred, when possible. The mistake I made: having a debit card. We spend more easily by telling ourselves that there is time because we will pay once the salary arrives. Except that in the end, we tend to spend more and live beyond our means. So I removed this service and saved on my bank charges.

3 / I am building up precautionary savings

In the event of a hard blow or an unforeseen event (work stoppage, loss of employment, illness, car breakdown, etc.), our budget is affected. Precautionary savings make it possible to meet these expenses, at least in part.

We can start slowly, even 10 € / week is a good start (520 € / year). The interest is to set up an automatic transfer, at a fixed date and to integrate it into the fixed expenses. This savings differs from project savings, which is a medium and long term solution.

4 / I monthly my expenses

For easier management of your budget, try to monthly your expenses: taxes, insurance, EDF, water, etc. or invest the equivalent amount each month in a savings account. This avoids a heavy expense at the end of the year (for taxes in particular) and the amount is equal each month.

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