Image Taken From: https://medium.com/@viren.webchanakya1/how-to-manage-personal-finances-and-save-money-11-powerful-tips-f887b533fee9
I think everyone have gone through a stage in their lives where it's very hard to manage your finances. I'm here to share my very simple trick on how I managed my finances.
Note: I am not a financial expert and I am not saying you should follow what I do too. It's just a simple example on how you can manage your finances in a simple way. It works for me coz I am not rich and I do not need an accountant to manage my finances.
Make a simple Journal Entry
For those who doesn't know a Journal Entry is I suggest you try searching in Google for more info, but basically a Journal Entry is a list of all your income and expenses. You put all your income in the Debit section while you put all your expenses on the Credit section.
What I did was I made a very simple Journal Entry in Microsoft Excel. In here I list everything, and I mean everything from a simple Savings Deposit to the Grocery costs so that I can see how much money is left. Yeah it's very tedious job to list every little thing you do but it works for me. I am fond of listing and calculating everything from my finances. It's all thanks to this I can make decisions for my money, whether to save it, to invest it or to buy something.
By listing all of my financial movements, I can keep track of my finances in a simple manner. I can look back on my monthly reports on which month I spent the most money and I can see what I did during those months. Same goes for looking back at what months I got the most money from and where I got it. And please pardon my naming schemes on my excel file. I love abbreviating things so it's much simpler for me to read or scan through it.
It's a simple and neat trick for anyone who is having a hard time managing their finances. Honestly try doing this even for a few months and it can really make a difference. You will not be able to overspend coz you will know your financial capacity by looking at your journal entry. Decision making regarding your finances will be made easy if you know how much money you have left.
In my example pictures above I only have 12,889 pesos left in my finances so If I want to invest in a new business I would need a few more months before I can do that coz if I do it now then I'll be in the red which is not good.
I hope you guys learned something from this very simple post of mine and once again. Do your own research.
If you liked my blog then you should read my other blogs as well
Here are my 5 recent blogs which you can read:
Cooperative explained with an example
Pinkhub's inspirational life story part 4
Pinkhub's inspirational life story part 3
Pinkhub's inspirational life story part 2
Pinkhub's inspirational life story part 1
Hello guys I am Pink Hub and I love all that is pink.
Show me pink and I'll show you a 😍
Living in the province of Cebu in the Philippines.
I am a businessman by nature.
Gaming/Reading/Programming is my passion but I also dwell into other things as long as I find it interesting.
I am also lazy, lazy in a way that I make complicated things easy coz I'm lazy 🤣.
Face your problems, but if the problem is your face. Worry not I can edit 😇