![]() ![]() ![]() Sure, it’s tedious but there is no better way to get an accurate picture of your expenses. Now take your bank and credit card statements and categorize your expenses. At the top of the columns, enter the amounts corresponding to the different categories. And then make three columns: needs (50%), wants (30%) and savings (20%). To start making your budget, you have to go to the source of it all: payslips and account statements.Ĭhoose a standard month and start by writing down your net employment income as well as all other recurring income (family allowances, invalidity pension…). Making your budget will not instantly change your life, but it does provide a solid foundation on which to base your financial decisions. The first step is to eliminate bad debts and then you can go on to create wealth. The most important thing is to spend less than what you are earning. Getting in control of your money is an insurance policy against life accidents and an accelerator for your projects. Having one means having all the cards in hand to make good decisions that have an impact today, but which might also have one for the next 25 years. My budget has helped me overcome hardships in the past (separation, illness…). It’s very straightforward but I wanted to find more tips about budgeting so I could share them with you. Since then, my life and needs have evolved and I wanted to read Elizabeth Warren’s book, the creator of this money managing method: All Your Worth: The Ultimate Lifetime Money Plan. After looking on the internet, I created a very simple Excel document to help me manage my finance. I started using the 50-30-20 budgeting method in 2011 when I began working full time in Paris. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |