Many of the domestic finance administration tips are nourished by business principles."Managing personal or family finance has a lot to handle those of a company," says Manuel Gilabert, Business Administrator, accountant and accounting teacher and costs in UADE.
The advice of this administrator for those who want to take care of their personal finances is to take into account three concepts:
"If we don't have a clear objective, we will never succeed in personal finances," says Manuel.It is essential for anything we set in life: to be clear about where we want to get to know if we are on the right track.
Some examples of objectives can be: buy a car or a house, ensure the education of children, have a certain standard of living, go on vacation.
"Knowing where you are standing implies keeping a record of how much you spend and how much you enter per month," says Gilabert.The administrator clarifies that "in countries like ours the relative value of money is permanently distorted, so it is difficult to have this fresh information".To those who have a stable job, it will be a bit easier to keep this record.In the case of those who have a salary that depends on the amount of services provided or products sold, it is important to identify the floor (approximate fixed income) and the variable (how much above the fixed income can I have).This applies, for example, for those who provide a repair service: in general, there will be a monthly number of approximate works (floor) and probably some months will emerge (variable).
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Manuel explains that we must differentiate the indispensable expenses from tastes, "which are also important, but you have to have them classified as such".In this line, it should be remembered that it does not help personal finances that expenses for both things (tastes and basic expenses) exceed the level of fixed income because that translates into debts.This is the case of credit cards, before which we must pay close attention: “We accumulate purchases.Give the feeling that you already bought it and, in reality, you took a debt, ”says Gilabert.
Regarding credit cards, it is key to demystify the issue of installments without interest."There are always some interest.Sometimes they tell you that if you pay it in cash, you have 15% discount or it also happens that it is different from the list price, ”says the accountant.Gilabert also adds that "last year the amount of credit card debtors grew a lot in Argentina, for trying to maintain a level of consumption when you do not have that level of income".
One of the administrator's advice is to always keep in mind the following: "In the house everything breaks".That is why, when anticipating expenses, you don't have to think only about the expenses of the month, but take into account an amount "for things that break", Manuel suggests, since it is common for some appliance to break or have to doSome arrangement in the house.
At this point, under the "basic principle of not spending more than you enter" that Gilabert mentions, savings are included, which is the margin between income and spending.
At this point we must consider the way we will reach the objective."Maybe you distract you and use money for something else, but it is essential not to touch it, although there is always the temptation to use it," says Manuel.
A way to save to get to the objective is to try to make some type of investment, "especially here that there is so much inflation," as the accountant says, since simply keeping it leads to devalue."It is not necessary to be an investment expert," says Gilabert."The simplest and lowest risk is the fixed term, which implies having the money immobilized during a period in exchange for an interest," says the administrator, who expresses that the value of that interest today is around 35 or 40%.While clarifying that "it will never give you a higher rate than inflation, it compensates for much," is a way to save, receive interest and not touch the money (since it is in the bank).
The other two techniques that help save are to change the silver we have for a extrajacking currency and also invest in the stock market or form a common investment fund.
Who is clear about these three items and also has a discipline that allows him to maintain the amount of savings can take care of his personal finances.Regarding keeping accounting with income and expenses, Manuel says: "It is not necessary to do it every month, it can be every two months" and also remember that "having some control is better not to have any".The best way to carry these accounts is one that is most practical to each person.There are applications for cell phones or can be done in Excel, but you can also simply be used birome and notebook that allow you to register this information.