Some people excel at managing their finances. They plan their savings, anticipate the outflow of money by budgeting each item of expenditure, provide a margin for outings and purchase pleasure. If this is not your case, without going into such levels of precision, perhaps you should rethink the way you manage your money.
You live on credit
You realize at the end of the month that you have spent more than you have earned. As you are in the red, you pay on credit if your credit card or your card of a big sign allows you it. Being in the red is acceptable, from time to time, in the event of unexpected (s) and consequent (s) expenses but especially necessary (s). We can have some difficulties because we had to change a water heater that has let go, not because we made market his Sofinco card from the Printemps store to buy shoes at 500 €.
To overcome this problem, create budgets for your current expense items. This can help you identify areas where you spend too much and where you do not plan enough to cover your needs. Finally, always pay cash and do not use credit cards, except in exceptional circumstances.
If you are highly indebted, subscribed to various consumer credits and pay overwhelming monthly payments, you must of course, and urgently, review the way you manage your finances. If the burden of debt is too overwhelming, you can consider a buyback of credits. This solution will greatly facilitate the management of your accounts because it involves a consolidation of all your credits into one, with a single monthly payment, from a single organization. You can also possibly lighten your monthly payments.
But the redemption of credit is by no means a miracle solution. This approach must be accompanied by a real handling of the situation by setting up a debt payment plan. Remember that in the vast majority of cases, a debt is repayable, with a lot of willpower, discipline, and a hard effort.
Consult our file and comparative on credit and purchase of consumer credit
You multiply late payments and run out of money too early in the month
We can forget to pay a bill from time to time. It does not matter. But if you’re always late with your payments, it’s a sign that something much more serious is happening. There are two main reasons for these delays: you are just negligent (some would say “administrative phobia”) and you can do this by providing automatic bank transfers at the beginning of the month for all your current bills, or you do not have enough money and push back. the payment at a time that you hope more pomp. In this case, creating budgets and careful planning of your expenses can help you pay all bills on time.
Another situation: if you are still in trouble at the end of the month and you have trouble covering the essential and necessary expenses that are food, heating, electricity, etc., you also have and without the shadow from a doubt a big cash flow problem. To avoid this situation, no miracle recipe! But a tool that has proven itself and whose advantages we have already talked about: the creation of budgets. Set up a system of envelopes for different expenses (food, multimedia, heating and electricity, clothes, etc.).
You have never made a budget
Everyone should work with pre-defined budgets that we stick to. Even those who pay all their bills on time and even those who are never exposed! Indeed, a budget allows you to define in advance what will be your outflow of money for each item of expenditure. Of course, also plan a certain amount for fun expenses and / or unforeseen expenses.
A budget also allows you to set savings goals and, as such, it is a major tool in taking control of your finances. If you’ve never made a budget, it’s time to start today. Simple and quick to set up, it will help you to change the management of your money and therefore the state of your finances.
Every small unforeseen expense turns into an insurmountable catastrophe
If you have real financial difficulties, a brake problem on the car or a water damage in your apartment quickly become sources of anxiety. If you are in this state of mind all the time and you dread that a tile falls on the corner of the face because you have nothing to pay for the repairs that it would induce, it is time to change the way which you manage your finances. If you wake up at night, worry about your finances, and wonder about how you are going to pay for your insomnia, this is also a sign that you need to change the way you manage your money. .
You need to save to create an emergency fund: a few thousand euros on a secure and liquid envelope such as an A booklet, a LDD or, boosted booklets with a higher yield than the classic booklets. This amount will allow you to meet urgent and unforeseen expenses. Start by saving the equivalent of one month’s worth of expenses, then save an amount equivalent to what you spend in a year. You will then be able to overcome all the accidents and surprises that life has in store for you.
You have never thought about your financial situation
Even if you earn a good living, have always paid your bills on time, never thought about your financial situation, built up savings, never defined your financial goals and spent from day to day, some things deserve to be reviewed. To move forward, build wealth, prepare financially your retirement, it is important to not only operate with a defined budget but also to define its investment objectives its investment horizon and risk aversion to define investments that suit you and allow you to grow your capital.