June 28, 2017 end debt tips to end debt personal finance expenses online loans online loans
To have good personal finances, the first step is to make the difference between our income and our expenses as large as possible, that is, to reduce our expenses as much as possible, regardless of the salary we have, and save the difference for defined goals.
Commonly, the more we earn the more we spend. There are people with high incomes are in adverse economic situations, and people with average incomes have their finances in very good condition. The key to having a good relationship with money throughout our lives is not to waste everything we earn and not spend more than we have, that will give us the opportunity to save for our goals and face difficult situations that arise.
To reduce your expenses it is necessary that you first make a budget. Make a list of your monthly expenses and keep track of those expenses. The first time you do this exercise you will realize that you spend more than you thought in some categories: restaurants, transportation, parties, etc. Then you will begin to know your financial behavior and you will be able to establish real limits to your budget. The goal of having a budget is not to spend money that you do not have and to find opportunities to cut certain unnecessary expenses. You will decide what your priorities are; However, most people have similar costs that are costing us more than we think. Learn 11 ways to reduce them:
1. Eating out of home
Most of us are eating money away from home, so it’s good advice to start practicing our culinary skills and cooking at home. You can do it once a week and leave everything ready for the rest of it. Besides saving a lot of money, you will take care of your health, since homemade food is, in general, healthier.
2. Go to coffee shops
It’s okay to go to coffee shops from time to time, but doing it daily represents a considerable expense for our economy. If you can not live without coffee, we recommend buying a coffee maker. If you spend $ 50 a day on coffee, you are allocating $ 1500 of your soil per month. If you invest in a $ 1200 coffee machine, in less than a month you will recover your investment and the coffee will cost approximately $ 10 per day. Take your thermos everywhere.
3. Live alone
Another of the strongest expenses you have is the rent of our apartment, so sharing with someone else that extra space you have can reduce costs.
We know that traveling by public transport may not be the most comfortable option; however, taking it regularly or using a bicycle, if you have one, will reduce your transportation expenses considerably. Forget about Uber and you’ll see what you’ll save!
5. Have pay TV
At this time there is no reason to be paying more than 300 pesos a month in a television service. Internet now has economic and quality content options: Netflix, Amazon Prime Video, HBO GO and Youtube Red.
6. The fashionable phone
Having a cell phone today has become a necessity; However, many of us get into debt to get the iPhone7 at any cost. Do not lose your financial peace for such an expensive phone, and less if you are not willing to pay insurance in case you lose it or it is stolen. Buy a cell phone that is functional and suits your needs.
7. The credit card
Find a card that provides benefits that really add value to you. If you travel a lot, get a card that teacumulates airline miles for each purchase. If you consider yourself a total client, look for a card that does not have an annuity; If, in general, you do not pay off your credit card every month, then look for one with lower interest rates, even if they charge you an annuity. Do not be afraid to investigate more options!
8. Stay in hotels
When we travel, hotel expenses usually absorb a large part of our budget. With Couchsurfing you can get free accommodation and even make local friends. If you are traveling as a group or as a couple, perhaps the best option is Airbnb, where a local will rent your house or apartment for you to stay. In Mexico, at least, this option is cheaper than hotels. This way you will save money that you can use to try the local cuisine or visit the most important attractions.
We recommend you read Airbnb vs Hotel
9. Go to the movies
Currently, attending movies has become very expensive. The tickets range between 60 and 80 pesos, and the price of popcorn and soda reaches ridiculous figures of over $ 100. The ideal is to go to the movies only when there is a movie that you really want to see.
A cheaper option is to go to the National Cineteca, where a ticket costs $ 50, and the content they project is of very good quality.
10. Buy at the store and on the street
Of the worst habits that Mexicans have, and maybe it’s because there are stores and food stalls everywhere. These expenses are what are known as ant spending because they may seem small, but in the long run, they consume a large part of our income. Many times it is preferable to pay $ 70 for a healthy meal, to spend $ 40 on junk food, unhealthy, and not even leave you satisfied.
11. Consume bottled water
Buying bottled water every day can damage your portfolio a lot. If 1 liter of water costs $ 10, and we need to drink 2 liters a day, you would be spending $ 20 a day and $ 600 a month. Do not you think it’s exaggerated? Buy a plastic bottle and load with your water everywhere. You will save a good amount of money and along the way you will form a healthy habit and help the environment.
If you are determined to create a personal budget and track your expenses, to start saving; we recommend using Dinerio, the first automated personal finance platform in Mexico. With Dinerio you can create a personalized budget and track it in an automated way. By linking your bank accounts to the platform, Dinerio will automatically track all your expenses, categorizing them automatically and adding them to your budget. You just have to record your expenses in cash, everything else, the platform will do for you. In addition, your financial information will be safeguarded with the same security as banks do. Learn more at www.dinerio.mx