One of the best tools if you want to keep track of your personal finances and more money in everyday life is that you put in a good budget. A budget is really just a prediction of how much money you want spend every month. One can, for example, put his budget one year ahead at a time.
The advantage of putting a budget over their personal finances is that you know exactly where to afford extra excesses and you can plan to afford vacation and unforeseen expenses.
How to put your budget?
One of the first prerequisites that must be met for you to put in a proper budget that holds is that you know your fixed monthly expenses. You can use your payment statements from PBS or printouts from the bank for this.
The easiest thing is to use a spreadsheet to put your budget in. However, it requires you to know excel, otherwise there are other programs that you can use. Look further down the page.
It is an advantage that you divide your budget into different topics, such as housing, transport, etc. In this way, you get an easy overview of the individual elements of your private finances, and can more easily see if it all is related.
If you have divided your budget into categories, it is easier to get an overview and, for example, save where it least hurts.
You are now taking all of your overheads from the last year and entering the spreadsheet. Please make a column for each month. There are some expenses that are only paid once a year, such as insurance, others are paid quarterly as a license or renovation and the like.
When you have put all your expenses into the spreadsheet, of course, you must also include your income. If you are more in the family, everyone’s income must of course be brought in. Remember that it is the amount of tax you must state. Also remember to include, for example, child allowance, housing security and such. The more accurate you are, the better a budget can be prepared.
Finally, you add up all your income and expenses, and the difference is then your monthly allowance. So the amount you and your family have for consumption, food, etc.
However, there are some who also include food in the private budget, but it requires that you know how much you are shopping for. I myself prefer to keep food out of the budget and then just know that there is also money available for oatmeal and red steaks.
The budget helps with decisions
When you have an overview of your monthly expenses, it’s also easier to make decisions that might make more money for spending, or maybe even money left over that can be set aside or used for major purchases.
If you have a common economy with a partner, it can also be healthy to discuss the budget – Is there anything you want, or is there something that one thinks is superfluous, then it is healthy to take the talk. The budget can also help with that. Basically, it’s about not spending more money than you earn, otherwise you end up in a negative spiral where your debt grows.
Programs that can help with the budget
In my view, for example, excel is one of the best tools for setting a budget. If you do not excel, you can use Google Docs free of charge, which also has a spreadsheet function. However, it requires you to create a Google Account, but it is completely free. In fact, Google Docs provides a template for a budget. However, the template is in English, but if you speak English you can easily translate it into Danish. See it here
You can also find help setting a budget in your bank. For example, in Nordea , there is a built-in program to put a private budget in the online bank. I also know this is the case with Danske Bank and a large number of other banks.
Do you know of other programs to budget? Then I would very much like a comment from you – You can write a comment below.
A budget must be kept
The most important thing when you have put a budget is that you put one that can actually be kept – and then do it. It is of no use to put a budget that does not last on the long run or that does not have all the expenses and income. Then you might as well not.
Make sure you have ALL the expenses and revenue in your budget – otherwise you can’t use it to make decisions.
If it turns out that there is no match between your expenses and revenue, then there are two things to do: You can either make more money or spend the expenses. The first part is probably the most difficult, unless you have a very understanding boss or want to take a byob. Saving on costs can also be difficult, but here it is, after all, you who sovereignly decide what you want to spend your money on.
If you have to save on your expenses, it would be a good idea to talk to your partner if you have a common economy. It may be that there are some expenses that neither you nor the partner think are important. After all, these would be obvious to save away.
Then you also have to remember that many brooks also count something. Do you, for example, have a membership to a gym for 149 SEK a month, but do not use it? On an annual basis, it will actually be 1788 kr, which you may be able to use for something else.
Do you even have good advice on budgets and private finances? Then finally write a comment below.
Categories Private economy Tags budget , luxury trap , private finance post Navigation Gain control of the private economy Make money from home