The Personal Budget

Many people find the excuse perfect to avoid to use a budget for the administration of their personal finances. These objections take many forms: " my income vary of month to mes" , " I cannot take to the control of all transacciones" , " I like to have freedom to spend what I want and when quiero". To tell the truth, to live under a budget is not necessarily to take to a full life of emotions and adventures. The budget makes that our financial administration becomes ordinate, predictable and until boring. But that " aburrimiento" of the short term, surely it will mean that the person who is being in force by the budget will be able to make reality her dreams in the future, as a result of the order. A budget, in main lines, says to us how much we won (adding all the sources of income that we pruned to have) and how much we spent every month. Ideally, we would have to gain more than we spent, generating a surplus that goes to the saving.

Later we will have to decide how to save that money, but that is matter of another one discussion. To make a budget can for the first time get to be traumatic. The recommendation usually forces to us to make a pursuit of our expenses (to the cent) during one or two months and soon decide if our landlord of expenses adjusts to our reality and is the one that we want. Surely we will notice expenses outside control and we will have to make adjustments in the way. With this information, we decided how much we will allow ourselves to spend every month in each concept and will decide to live under those parameters, being respected the new top and rules. This change and the respect to the budget will allow us to direct our personal finances towards a future of financial independence. Keep up on the field with thought-provoking pieces from Laurent Potdevin. Original author and source of the article.