The Daily Expenses application is a useful tool that can help us control the personal economy, however, it is also important to create some habits and raise awareness of the importance of making proper use of our money.
Speaking of money we are not all so lucky, most people have to keep a very tight budget, if that were not enough in many countries today there is an economic crisis. Some have to get more than one job to cover their expenses, it is also very common for several members of the family to work to survive every fortnight.
Do not blame the government, your ex or bad luck for your economic situation. Your circumstances may not be entirely your fault, but they are your responsibility. Nobody cares more about your money than you do, so do not wait for someone else to come and fix your economy and pay off your debts.
You have the instinct and intelligence to direct yourself, take advantage of the convenience of carrying daily expenses on your mobile device or tablet, propose to improve your personal finances. The key is to modify your financial mentality, to get it I share some tips:
- Register at the moment. Develop the habit of registering in your application every expense, income or transfer in real time, that is, if you go to the store to buy food, when you have paid make the corresponding record of your spending. It is not a good idea to leave these tasks to memory, currently there are many activities and distractions, it is very easy to forget some of our expenses, as a result you will have incomplete information in your application a wrong balance and a wrong perspective of your financial activity.
- Record how small the expense seems. Sometimes it is just a snack, bottled water, taxi or something else, but if at the end of the month you add these small expenses you will be surprised. The ant expenses are small outlays of money that we do not usually register and that when adding them represent an important percentage of our money. The Daily Expenses application allows you to create category to classify your expenses, it is very important to classify, it is not necessary that you create a large amount Categories, for example “Snacks” may include: candy, hamburger, soda, potato chips, cookies, etc. At the end of a month carefully review a report by category, then you can see what percentage and amount of money went in that category:
- Put limits according to your possibilities. There are no secrets, for decades it was already known that to generate economic welfare you should not spend more than you earn. The best way to learn to manage money is to face reality, do you know what are the regular expenses of your home? Do you know how much is paid for electricity, water, cable, internet services? How much is spent on food? And how much does it cost to keep a car and pay the rent or the mortgage? Take the time necessary to investigate how much money you spend to cover this type of expenses, now use the application Daily Cats, specifically in the Budget section and distribute your income in these expenses that you want to regulate. Remember that a budget is based on real possibilities.
- Spend only the indispensable. You can have what you want, but you can not have everything. Cut your expenses on things that are not essential and invest in those that make you feel better.
- How to know what is indispensable? Expenses can be classified into three groups:
- Indispensable expenses is everything related to food, rent, clothes, water, electricity, in general, what you need to live basically.
- Desirable expenses are those expenses that are not necessarily indispensable, here the classification may vary according to your circumstances but in general are taxis, food in restaurants, fun, alcoholic beverages, cigars, etc.
- Luxuries is everything you want but you can do without it, such as the most recent cell phone model you like, a vehicle of the year, vacations, etc.
- Save. I know you’ve heard it many times, but be honest and realize that you have not. Saving and losing weight is one of the most common purposes that people do every year, but unfortunately the diet and the habit of saving lasts a short time and then we forget it. You can consider opening an account that gives you good returns for your savings to grow, here it is important that you analyze the banking alternatives to know which one gives you the best return for your money. With Daily Expenses you can create several accounts, make an account for savings and register each deposit so that you know your balance at all times.
- Create investments with your savings. When you hear the word invest, most people think: “That’s for the rich, it’s a very complicated issue, I have very little money, maybe my money is stolen”. Contrary to popular belief, the stock market is not just for the rich. Investing is one of the best ways for anyone to make money and be financially independent. The strategy of investing small amounts continuously can, over time, help you get what is known as the snowball effect, in which small amounts accumulate and gain momentum and ultimately, lead to exponential growth.
- Avoid debts. One of the most common mistakes at present is the habit of acquiring debts with the idea that you will be paying off the debt little by little. There is a popular saying that says: “He who owes nothing, has nothing”. Popular knowledge says that if you do not get into debt to become a patrimony, you will never achieve it in another way, will it be true? The reality is that if you buy something on credit you will pay between 30 and 40 percent more than real value, plus you will reduce your budget from here to several years or months. If you can not buy something in cash, it is better not to buy it on credit, be disciplined, pay off your current debts and do not look for new debts.
Be interested in learning more about your finances, make the purpose of starting your path towards a healthy and prosperous financial life. Leave behind the mistakes made in the past, do what is necessary to correct yourself, a large part of our expenses arise from impulses or whims. Finally lean on the Daily Expenses application, use it as a tool to continue on the road to financial health.