Spring Financial Cleaning – Tips on the organization of personal budget, evaluation and adaptation of expenses

We all know how important the management of the personal budget is because this helps us to know exactly what expenses we have, how we can manage them better and how we can adapt them in order to have the opportunity to save, to allow us the things we want and even to invest in the future.

But, when it comes to doing it, we do not always know where we can start, what are the best ways to organize our personal budget and how we can maximize it. Here are some suggestions, from our experience, which will help you manage your personal budget better. And you can start applying them just today, to create spring financial cleaning.

1. Make a list of all income and monthly / annual expenses to determine the personal budget

Whether we are talking about the personal budget or the budget of a family, you can help you with a simple table, with two columns, in which you will pass the revenue in a column and the costs of the expenses in the other column.

Personal budget revenues must be clear and can be:

• Salary
• Children’s allowance
• Maternal assistance
• Pension
• State help
• Periodic bonuses
• rent
• Divide
• Any other income

To make the registration of expenses more easily, it is possible to divide this category into four segments: housing costs, car/transport costs, other fixed costs and variable expenses.

House expenses may include:

• Rent
• Mutual
• Utility – Maintenance, heating, electricity, etc.
• Housing insurance
• renovation
• Cleaning, maintenance, repairs
• The costs relating to the car / transport may include:
• Credito Auto
• insurance
• Fuel
• Maintenance and repairs
• Road commissions
• Subscriptions to public transport

Fixed expenses may include:

• Insurance (health, life)
• Subscriptions (Mobile TV, Internet and Cable, Netflix, Fitness Room)
• Savings (if you set a fixed monthly amount that you want to save)

Variable expenses may include:

• Food
• Personal care products
• Clothing and footwear
• Relaxation activities
• Online shopping
• vacation

2. Determine if you calculate the personal budget per month or year

Establishing a personal or annual personal budget depends only on what you want to achieve. A monthly personal budget can be easier to establish and follow, if for example all income is collected monthly. But if you have annual income, such as investments or dividends, an annual income will be more useful to you. You can start by setting a monthly personal budget, which you can adapt it to an annual one.

3. Really regulate the expenses from your personal budget

Expenses from the personal budget can float due to external factors, such as inflation, the Robor index or IRCC, the price of fuel, etc. Therefore, it is recommended to regulate expenses with monthly or quarterly real amounts.

4. Reduce the expenses from the personal budget

Make an objective evaluation of all the expenses from the personal budget and think if you really need all the things you spend monthly or every year. There may be many segments from which you can save.

Here are some suggestions to reduce expenses:

• Replaces the personal car with public transport, at least half of the month
• Renounces the monthly subscriptions that you may not use so much (such as YouTube Premium, Netflix, Amazon Prime, HBO Max, etc.)
• Change your mobile ticket, internet or cable with a cheaper version
• Choose to live more sustainablely and save on water, electricity, gas, etc.
• Buy quality clothes and footwear rarely
• Choose to shop on the market or producers compared to the supermarket

5. Monitor the expenses from the personal budget and be disciplined

Finally, the maintenance of a personal budget depends only on you. It will not be easy, but not difficult, all you need to do is cars -Discipline. You have control, so if you want to have a positive financial result (savings, acquisitions, etc.), you must look at the objective expenses and be willing to renounce certain molds.