love Money account

Surely, everyone has heard the phrase: «love Money account». Why is it so important to consider? Here’s the thing: for the effective implementation of any economic activity must be monitored for both income and expenses. Organizations it is important to have information about whether they have the funds to continue or not. It’s the same with people. We all want to have a lot of money to afford a comfortable life. At the present time in our lives decide much money. Then you should think about how to deal with them, so we never had financial problems. No matter how much we get money is important, how much we have left. A good motive for accounting of income and expenses is the desire to fully represent the family budget and take it under strict control. It also provides an opportunity to plan a major purchase, comfortable rest or teaching children in day, month and year ahead. I want to share with all the experience of how to properly manage your budget and why is it important to monitor income and expenses, i.e. to understand what you are spending and how much remains money. Income and expenses will give you the opportunity to plan their future. One very rich man always said: «to be rich, you must learn to read the numbers». Let us do it. Budget family or personal should become a kind of financial plan, a set of rules according to which it is possible to rationally manage money. The process of doing the budget was divided me in three stages: Recording the receipt and expenditure of money. The analysis of costs. Planning income and expenses. For a start, I propose to organize their sources of income. You need to remember them all and write on a sheet of paper in order (or in Excel). Conventionally, the income can be divided like this: Income from main job (monthly salary, bonuses, awards, etc). Income from additional jobs (salary, honorarium). Income from the state (child allowance, stipend, pension, alimony, insurance, etc). Profit in business. Income from liabilities (renting your own apartment, garage, car rentals, interest on deposits, shares or securities, copyright, patent, etc). Revenues from sale of own real estate, furniture, cars, securities, etc. Loan funds (loans, borrow money, loan). Certainly for us can be some opening that amount of income. To compile such a list we never thought about it. Now all is clear. The next step will be to systematize necessary expenses such as utility payments, expenses for food and clothing, payment of various types of communication, transport, costs on your own car, education, leisure, pay off loans and debts, etc. All income and expenses must methodically to write every day. You should not skip days: it seems that I will remember what day and what was purchased. If you write in a few days, the purchase may not be in the list, eventually it will be forgotten, and will be a lot of confusion, where did the money? Be sure to save all receipts. I’m on a fixed income and expenditure takes 1-3 minutes per day (I use the program on the iPhone, came out from the store — recorded — takes 10 seconds). You can, of course, to use any structure accounting (charts, graphs, lists, and so on), the main thing that was clear and understandable. At the end of the month am getting the result. Now you need to analyze. I always follow the principle: reducing costs, you can increase revenue. Cost accounting stimulates the development of self-discipline and unwanted costs, after all, recording the movement of money, we certainly think: «can you do without it I do next time?». The situation can always change in the desired direction. For example, reviewing expenditure «Cafes and restaurants, you can think about lower spending on them. Later you will find them a new use: can be postponed for recreation or for the acquisition, which had long dreamed of, and money for it always lacked. Also very significant is the statistics for the year comes to a clear understanding of how much you earned and spent for the year, and an understanding of how useless was spent part of the money, which is a tidy sum. In this case (estimates) the main thing is not to be lazy and not to delay the recording for later. Good counts 🙂