Last Updated : 2020-06-15 10:02:44
It is defined as the set of economic facts that are registered in the daily activity of a person or family. This means, the administration that we give to our income and expenses; we are not exactly talking about numbers but Decisions. To do the above, I mean knowing how to spend our money, what you need to do is a budget.
Due to the common nature of this situation, there are currently experts in personal finance planning, precisely for those managers and individuals who do not know how to manage their economic future. Budgeting helps us recognize and realize that we use the money to catch up on useless spending, and the less we are fooled and the more accurate it is, the more control we have over our finances.
Each of us must know what is or what are the tools that are available to plan finances; at the time of acquiring a vehicle, a home, starting a business of their own, paying school fees, vacations, and extra activities, both personal and work.
Making one or more errors in the administration of personal finances generates discomfort. Still, when these errors become habits, it becomes more difficult to identify them, and in the meantime, they will be affecting our economy. Therefore, to strengthen this economic situation and avoid risks in capital management, we must review the following list of errors and take it into account to keep our finances healthy:
Spend money that has not yet been received. Not investing is a mistake: without investment, money does not multiply. Losing control of finances: you should always know how much you have, how much you spend, how much you owe, and how much you save.
Ignore extraordinary expenses: they are small expenses to cover tastes and needs such as trips to a hundred, car wash, the daily purchase of an item or souvenir that the market offers us, etc. Keep unnecessary expenses. Do not plan for the future of income and expenses. Living at the limit of our monetary capacity: a surplus must be built for emergencies and unscheduled expenses.
Knowing the above, we have the task of not committing them, and if so, we should see them as an opportunity to improve. Reflecting on them will help us take a more disciplined approach to finance, and the benefits will be seen in the economy.
About Author : Sazid is a freelance writer and editor passionate about writing on the realm of business tech. He currently works with SMEs through North America and Europe.
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