The control and management of money can be complicated; When spending and buying goods, each consumption must be carefully analyzed. Likewise, the process of saving also involves an analysis of income in order to determine how much to allocate as savings.
“There is no fixed rule on the percentages of the item”, indicates the financial coach Andrés Mortola. However, he advises to divide them as follows: 50% basic expenses (housing, food, health, education), 40% (debt – fun) and 10% savings. The situation of each family should be analyzed.
Renting an apartment for four people in the center of the city of Guayaquil costs around $350 per month. Mortola advises that it is preferable to look for a place where the rent does not exceed 25% of the family incomethat is, if your salary is 800 dollars, it is preferable that your rent does not exceed 200 dollars.
Secondly, the percentage of savings is very important, since this can be used to make an investment or can even serve as help in case of running out of income. “It is recommended to start with 10%, but if you are single, you live with your parents and you are working, it is possible to save 20% or 30%; If you are in an economic crisis and have debts, the value can be adjusted to 5%, the important thing is always to allocate an amount for savings”, explains the financial coach Mortola.
How to properly manage the salary?
Make a budget prioritizing basic expenses. “Pay what is important, food, health, education and housing.”
1. Register Expenses
The first step to start saving money is to determine how much to spend. Track all your expenses; that means every purchase, household item, and cash tip. Once you have the information, organize the numbers by categories, such as gas, grocery shopping, and mortgage, and get the total for each. It is important to note that there are unnecessary expenses.
2. Budget for savings
Once you have an idea of how much you spend in a month, you can start to organize the expenses you recorded and set a budget you can live with. Your budget should give you an idea of how your expenses compare to your income, so you can plan your spending and limit overspending. Be sure to factor in expenses that occur regularly, but not every month, such as car maintenance.
3. Find ways to cut your expenses.
If your expenses are so high that you can’t save as much as you’d like, it may be time to cut back. Identify non-essential categories where you can spend less.
4. Set savings goals
One of the best ways to save money is to set a goal. Set a small goal. Achieving smaller goals, and enjoying the nice reward you’ve saved for, can give you a psychological boost that makes the rewarding feeling of saving immediate and the habit stronger. (YO)
Source: Eluniverso
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