Salary Distribution and Management

No matter how much you win, if you manage your salary well you can make it pay in a way, that allows you to spend, have fun and even save. Know the tips that will have a good financial balance.

Contrary to what many think, you do not need to be an expert in finance to make your salary.

Regardless of the amount of your salary, the important thing is that you have clarity about what your expenses are and the prioritize. This will let you control your money.

These are the main tips so that at the end of the month you do not have a balance in red and instead, enjoy some balancing of more that will serve to save. It is important to ask the following questions: How are your finances and how would you like to have them?

I assessed your finances
As elementary as it seems to take the time to evaluate your finances: Keep in mind what your income, expenses, and debts are. You can do it monthly, but if you magically disappear the money is better to keep a daily accounting of how much expense.

To determine your expenses, consider these calculations suggested by Suite101: 

-For housing (including services and maintenance), allocate between 30 and 35%.

-for food, allocate between 16% and 20%.

-For transportation (including insurance, petrol, public transport) Invest between 17% and 19%.

-For clothing and services (including arrangements, laundry), allocate between 5% and 7%.

-For health (including insurance) invest between 5% and 9%.

-For fun and entertainment, allocate between 3% and 6%.

-For savings (including for retirement) invest between 2% and 10%.

-For all other expenses (including magazines and periodicals, education expenses, personal care, monetary contributions, life and disability and miscellaneous expenses) allocate between 7% and 12%.

The percentages can vary according to your needs. The idea is that you have more control over each of the items that you spend on a monthly basis.

Do not exceed expenses

One of the fundamental premises and although it seems obvious is not to spend more money than you earn. It is very usual that at the end of the month you do not have money for the necessary expenses. For this reason, it is important that you have limits and try to do not exceed them. Also, avoid spending on vices like alcohol or cigarettes.

Make family plans

One way to save is to avoid meals away from home. It doesn’t mean you don’t have the right to go to a restaurant all month, but avoiding it is a significant saving. Also, when you make market buy what you need not waste food, Remember it.

Autocontrol

If you are not able to control your impulse to buy, you better leave the credit cards at home and take with you the necessary money that you estimate you will spend. This is cohibirá to be given certain luxuries that will put you in trouble at the end of the month.

Also, ask yourself if the product you are going to buy is necessary, it will be useful, and you will use it. Remember that buying with credit card generates interest, so the purchase comes out more expensive than if you pay in cash. This way, use the credit card for the necessary.

Savings

Note a goal to save on each payment by paycheck calculator, regardless of the figure is money that will be useful for an emergency or for any eventuality, which will prevent you from putting your finances in trouble. It is advisable to save up to 30% of your salary.

After a time when you have enough resources you can make investments that make you profitable: Rent a house, have a small business, buy shares, invest in a collective portfolio, among others.

Public services

Start with the simplest recommendations for saving utility bills: Turn off the lights you do not use, do not leave the computer on when it is not in use, close the water faucet while soaping, use low-power bulbs where they are longer lit and periodically decoding the refrigerator so that it does not work anymore.

The iron is one of the most light-consuming appliances, so avoid ironing towels or sheets, which is not as necessary as a shirt or trousers.

Control your consumption

The cell phone bill can generate a surplus in your expenses. This is why it is advisable to have a closed plan so that it does not exceed the use of the Minutes.

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