Balancing each month’s salary and expenses is much more than a sum of algebraic income-expenses operations.
But how, what strategies to implement to square the circle?
First, it takes a lot of conviction and determination. Otherwise all the good intentions announced at the weekend will already be trashed on Monday. Second, here are the tricks on how to save money every month and find yourself big bucks at the end of the year using this family budget.
Few rules for our savings
As mentioned, the first point is to give yourself a few simple rules. It is useless to buy Apps and programs that once applied also help to save a lot but that a lot of time passes before understanding them.
We choose something simple, feasible and immediate.
Let us have a family budget available
At this point we introduce the tricks on how to save money every month and find yourself many euros at the end of the year using this family budget. First of all, let’s start by obtaining a sort of family budget available to use during the month.
If we are public or private employees, we make this available budget coincide with the monthly salary. Plus any other income (fixed or variable) that may arise during the month.
In other cases, the budget will be given either by what we have available in cash or on the current account of ordinary expenses. Or we give ourselves a budget of tot euro per month, which can be, for example, equal to the average income of the last 4-6 months.
Let’s see how to proceed in practice
Having obtained our reference figure (for example: 1,600 euros per month) we remove two specific items.
The first refers to savings, which we can calculate in the form of a fixed share or percentage. Let’s see with an example.
We could establish that every month we set aside 100, or 200 or otherwise set aside. Or 4 or 8 or 12% of what we will go into over the course of the month. In the first case, assuming it is equal to 150 euros, we will do: 1,600 euros – 150 euros = 1,450 euros. In the second, imagining it equal to 8%, we will have: [1.600 – (1.600 X 0,08)] = 1.472 euro.
Subsequently we will remove all the other items of fixed expenses from this last figure. That is, it is a question of subtracting all those costs that we already know in advance that we have to pay during the month. This is the case of the installment of the house rent or that of the mortgage, the childcare fee and the installment of the life insurance policy or a PIP.
But think also of the monthly Internet and mobile phone promotion, such as pay-TV and sports center subscriptions. Again, we keep in mind the domestic users or their average calculated for example from the last 3-4 users.
And so on.
So here are the tricks on how to save money every month and find yourself many euros at the end of the year using this family budget
Now we are there: subtracted the share of savings and fixed expenses, here is our monthly family budget. For example, assuming the accumulation of fixed expenses equal to 840 euros, we will subtract this figure from the 1,450 or 1,472 euros mentioned above.
At this point we can then proceed in one of the following two ways.
First, we divide the available salary by the number of days in the month. In this way we have a very reliable idea of how much on average we can afford each day as “extra” expenses. In fact, we have already calculated and considered all fixed costs beforehand. And this regardless of whether or not you paid them during that month.
Second, at the end of each day we subtract from the family budget of the available sums the fees made during the 24 hours. In this way we will have a balance, a new spending limit that will be updated day by day.
As can be seen, this is a rather simple and elementary system. But that offers a great advantage: keeping at hand how much money we actually have available. Again, this method in most cases will not lead us to spend more than we can afford.
So here are the tricks on how to save money every month and find yourself many euros at the end of the year using this family budget. Finally, in the article mentioned here the link let’s see how to get rich: a matter of will and few rules.
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