Financial planning

Steps on the road to better money management

Taking the first step to better manage your money and finances can be difficult, but it’s the only way to get an overview of how much you spend and what for. How much income and expenditure do you have?

If you are in control of your budget, there will be less chance of your getting into debt, of being “pinched by the neck” by unexpected expenses, and more chance of getting a loan or credit.

Personal/household budget and how to build it?

First, find out how much you spend on:

• paying monthly bills (rent, water, electricity, gas, TV, internet, phone),

• living costs (food, bank charges, insurance, how much interest on credit costs you are paying),

• family and friends, e.g. for gifts, various celebrations such as birthdays and other anniversaries; weddings, lunch invitations, etc.,

• travel, holidays,

• car expenses such as fuel, car insurance and maintenance, public transport,

• leisure, including holidays, sports, educational and other activities, membership fees, entertainment,

• health (medicines, aids, help from another person, etc.),

• other…

See also Barbara Smrkolj’s monthly family budget. The author shows the division of costs between partners. Each of them keeps track of their own expenses. The author points out the budget shares, the need to save. She calculates the budget shares from the day of the salary to the day before the next salary.