Personal financial management is something that can be learned in most of the schools, yet it is something that almost everyone in life has to face. According to one study, 58 percent of people have no savings and investment plans for the period after retirement. If you are surprised by these things and do not want them to happen to you, you can visit https://www.hlas.com.sg/PersonalInsurance/TravelInsurance and follow the tips below:
1. For a month, monitor all of your spendings
You do not have to limit yourself; You just need to know how much money you spend during a particular month. Save all receipts, record how much cash you need and how much your credit card spend, and find out how much money is left at the end of the month.
2. After the first month, record how much you spend
You should not write down the expenses you expect; instead, you have to write down your real expenses. You need to categorize your purchases in a sensible way.
3. Write down the budget you actually spend
By the month of expenditure, you need to tell how much of your income you want to allocate each month. If you want it, you can use software for budget funds to help manage your budget.
In your budget, make a column for your estimated expenditure and actual expenses. The forecast budget contains your spending plan in a category; This should remain the same from month to month and calculated at the beginning of the month. Your real budget is the amount you end up spending; The amount will change from month to month and calculated at the end of the month.
Many people leave a large budget for savings. You do not need to design your budget to include savings, but in general, this is a good move. Professional financial planners usually advise their clients to budget at least 10 percent to 15 percent of their income for savings.