Let’s discuss a question how to keep records of own money and how to make planning better.

“I do not know where money is spent. Salary is always not enough. I am in a hole!” Often, we hear something like that from our friends. At the same time, one minute later they tell us how they spent time at the night club day before, or had shopping to improve their mood and bought new smartphone. However, they forgot, of course, or did not have time to replace tires of their vehicles for winter time since it is expensive, but they do not have money.

We decided to share some practical recommendations on control and planning of your budget. At the same time, to clarify what does hamper us to administer money in rational way.

So, there are some reasons putting obstacles to control own finance:

  • lack of understanding of importance of keeping records of own funds;
  • uncontrolled purchases;
  •  thoughtless attitude to debts and credits;
  • elementary laziness.

Let’s think how we can change situation.

First of all, you have to recognize that you have financial problems. And remember: only you created favorable conditions for their existence. It would be good to read useful literature devoted to financial literacy issues. Some people will, really learn something useful, and those who read such literature on regular base, they will get excellent motivation.

What do you need to do after learning? You must be responsible – no one will plan thoroughly your expenses instead of you. Only you have intension to en how to manage your money.

 1. Plan your costs in written form. Optimal period of planning – two weeks. Write all monthly expenses with indication of spent amount in special notebook. It can be payments on credits, communal services, transport costs, food, business development, children education and so on. These amounts must be fixed ones, not approximate ones. Even, if you find difficulties to indicate accurate amount, anyway write figures, which are the most realistic from your point of view. Please, list your expenses more often.

2. Take your salary (or other earnings) in the bank in strict relation with outlines items. Attention! Here, one “detail” is crucial: notes must be changeable; otherwise you will have high costs at initial stage. If it is written – 600 soms, which you have intention to spend for transportation, take exactly 600 soms for these purposes. Then, you will not be surprised where do you spend money?

 3. Precisely follow purpose of saved amount, do not go beyond its limits. We would like to be honest with you – this item is the most difficult. Life is life. There are also unplanned expenses. Therefore, please keep separate envelope for unforeseen costs. But this amount should not be high as you have already planned key points.

And now, the most important! Among other cost items, you should have item “Savings”. It is your personal reserved resource. You have to save at least 10% of your income and do not spend it under any circumstances. The better scheme is when you put savings on deposit immediately.

 4. Be responsible in issues related to debts and credits. But if you have them, please pay them completely and in time.

5. Do not spend money for some small things you can survive without. If you conduct experiment and list everything you were spending during month and then calculate, you would be surprised unpleasantly. Various useless small things are main grabber of budget

6. Indicate amount for daily food consumption expenses. If today this amount goes beyond limits, expenses purposed for next day, must be decreased.

 7. If you are going to make big purchase, do not buy it in the first shop on your way. It is better to visit brand trading centers and shopping malls. Definitely, you spent time to get information about prices and quality, but it is worth in such cases. It is important to use funds, therefore, keep your budget under control. Thus, a question – where is money spent – will not disturb you anymore.