Personal finance management without the exhausting logging of every purchase
In pursuing the recent family budget topic of Google Docs , I’ll tell you how easy it is to manage personal finances without exhaustingly logging all cash flows using the “industrial method” used in commercial organizations.
What does the financial director in the company? That's right - it ensures that the company does not spend more money than it earns, and also has funds for the tasks set in the future. The words that the financial director most often says: “we cannot allow ourselves this” to the director to hear, sometimes, very strangely, is there money in the account?
The fact is that when we earned 10 thousand rubles, it seems to us that we can dispose of all these means, in fact it is not. We need to pay rent, taxes, loans, buy food, set aside for clothes and other purposes, and only spend the rest. Of each amount earned, we can usually spend only a smaller part of it and we need to determine which.
Yes, sometimes for this you need a specially trained person and even a department. But the principle itself is quite simple, you can apply it for your own accounting, you will be yourselves the director.
')
1) You are not the owner of all the money that you have . Because: firstly, the money is flowing, secondly, most of the money is not yours - with the amount that you earned, you need to pay permanent loans (rent, loans, taxes, etc.) and, in fact, you just temporarily keep them. But there is also good news, you are the owners of cash flows and can manage them. Some streams bring you money, while others carry you away. But you decide which streams to send. You only need to evaluate them correctly.
2) You (like any other organization) will always spend all the money that came to you. No matter how much money you earn, in the end, you spend everything, the only question is when and for what. Money is always not enough. And therefore, to determine what you will need to spend them before you earn them.
3) In order not to be just a pipe through which cash flows (even if they are large), but to accumulate something, you need to understand what you are accumulating and when you use these savings . The piggy bank into which you send these funds is called a foundation. For example, "Bicycle Foundation". Based on when you want to buy a bike and how much it costs, the required rate of replenishment of this fund is calculated. For example: 2 thousand rubles per month.
I will show on my own example, albeit exaggerated. Since I am not only an individual, but also an Honest Entrepreneur, but the amount of funds and the frequency of transactions for a state of emergency is not large - I am keeping the general budget both for personal funds and for emergency ones. My budget is monthly.
So:
What are funds in the case of a personal budget? Yes whatever. This is a jar of herring, a pocket, a bank account or a plastic card. The main thing is that it regularly received funds at a set rate and was spent only on the target. Otherwise it will be improper use of funds :)
I am a supporter of strict separation of funds for individual accounts, it allows me not to keep a journal account (you can always look at the account statement), although it is quite possible to use one account (jar) for several funds, though then it’s necessary to keep a record what part of its funds where it is aimed, but I don’t want to do just that.
1. Determine your goals - the amount, term and calculate the rate of replenishment of trust funds. Paying taxes on time is also a goal.
2. We determine all fixed monthly expenses (5 minutes, based on the accounts for the last month)
3. We calculate daily expenses (food, entertainment, etc.) - well, there will have a little story to write.
4. According to the calculations, monthly we put the funds on the funds, accounts, jars and pockets.
5. We spend money from the fund, which is designed for this waste.
I know from personal experience that it is not always, more precisely, even almost always difficult to switch to such a system of accounting for finances from system-free payment of bills in the order of receipt of funds. It is difficult to do this with the fox finances and, especially, with the finances of the enterprise. Sometimes it takes months. But to use such a system is very simple. You do not need to write down something every day and think whether you can afford it or not, it is enough to put all the jars / pockets in place once a month. And most importantly - in this way you will see where the funds can come from for what you need.
Some believe that in order to apply this method of financial management you need to have a large turnover. This is not the case, and even the opposite - you start earning more when you learn how to manage your finances in this way.
Good luck to all!
PS Write questions, I will answer with pleasure.
What does the financial director in the company? That's right - it ensures that the company does not spend more money than it earns, and also has funds for the tasks set in the future. The words that the financial director most often says: “we cannot allow ourselves this” to the director to hear, sometimes, very strangely, is there money in the account?
The fact is that when we earned 10 thousand rubles, it seems to us that we can dispose of all these means, in fact it is not. We need to pay rent, taxes, loans, buy food, set aside for clothes and other purposes, and only spend the rest. Of each amount earned, we can usually spend only a smaller part of it and we need to determine which.
Yes, sometimes for this you need a specially trained person and even a department. But the principle itself is quite simple, you can apply it for your own accounting, you will be yourselves the director.
')
Three rules of financial director
1) You are not the owner of all the money that you have . Because: firstly, the money is flowing, secondly, most of the money is not yours - with the amount that you earned, you need to pay permanent loans (rent, loans, taxes, etc.) and, in fact, you just temporarily keep them. But there is also good news, you are the owners of cash flows and can manage them. Some streams bring you money, while others carry you away. But you decide which streams to send. You only need to evaluate them correctly.
2) You (like any other organization) will always spend all the money that came to you. No matter how much money you earn, in the end, you spend everything, the only question is when and for what. Money is always not enough. And therefore, to determine what you will need to spend them before you earn them.
3) In order not to be just a pipe through which cash flows (even if they are large), but to accumulate something, you need to understand what you are accumulating and when you use these savings . The piggy bank into which you send these funds is called a foundation. For example, "Bicycle Foundation". Based on when you want to buy a bike and how much it costs, the required rate of replenishment of this fund is calculated. For example: 2 thousand rubles per month.
Actually technique.
I will show on my own example, albeit exaggerated. Since I am not only an individual, but also an Honest Entrepreneur, but the amount of funds and the frequency of transactions for a state of emergency is not large - I am keeping the general budget both for personal funds and for emergency ones. My budget is monthly.
So:
I. We consider constant monthly expenses.
- The rent and household needs - 10 thousand.
- Credits - 28 thousand
- Food - 10 thousand.
- Fuels and lubricants - 3 thousand
- On a pocket, gifts - 3 thousand.
Ii. We define our goals and funds for them.
- At the end of the year I need to pay 12 thousand in pension according to IP. So I save it to the tax fund at a speed of 1 thousand rubles. per month.
- I still need to deduct 6% from each income on the IP quarterly. I know the average income per month of IP - 100 thousand respectively. I transfer to the tax fund 6 thousand rubles per month. I have a tax fund on a savings account in a bank. I also get interest from it)
- In the year we buy things, on average, 60 thousand means to the fund of clothes I will save at a speed of 5 thousand per month. The stock fund I have is a separate plastic card (red)
- I spend 36 thousand on THAT cars per year, which means I will save 3 thousand each month to my automobile fund. I put them in a bag with documents on cars.
- Contingency Fund (NZ). I set its size myself, based on my own income. The rate of replenishment is 5 thousand rubles. date of use is not defined - when needed. Savings account in the bank.
- On the boat. I want to buy a boat the cost of 300 thousand in a year, which means I save 25 thousand per month. Savings account in the bank.
- Since I was lucky and I have already created for myself a small “candle factory for old age”, I don’t need to transfer funds to the pension fund, and I donate all the money left after the distribution to the funds, to fund the boats, thus accelerating its appearance.
Iii. Monthly we decompose the income on funds / accounts / jars.
- Since the daily spending goes only under the articles: "food", "fuel", "on the pocket", I only transfer this money to my settlement card or put it in my wallet. Actually only this card and wallet are the source of all daily expenses. The amount is not large and has only three areas of expenditure, so it is quite easy to control it without keeping records. In the extreme case, you can use the method of "4 envelopes" .
Of course, in order to determine how much money you have, on average, money goes out monthly for these items, you will have to take notes for a month or two. But this is enough, since the size of all other expenses (loans, taxes) are fixed and known, it makes no sense to write in a journal that I, again, paid this kind of credit from an account of such and such - you will pay it anyway Once a month, arrange your parish in jars (see point 3). - According to the established rules we scatter funds among the funds;
- In terms of fixed costs (rent, loans) payment occurs immediately after cutting income (well, more precisely the next day), so no jars are needed for them, just put it in a separate pocket and went to pay the next money.
What are funds in the case of a personal budget? Yes whatever. This is a jar of herring, a pocket, a bank account or a plastic card. The main thing is that it regularly received funds at a set rate and was spent only on the target. Otherwise it will be improper use of funds :)
I am a supporter of strict separation of funds for individual accounts, it allows me not to keep a journal account (you can always look at the account statement), although it is quite possible to use one account (jar) for several funds, though then it’s necessary to keep a record what part of its funds where it is aimed, but I don’t want to do just that.
Summary.
1. Determine your goals - the amount, term and calculate the rate of replenishment of trust funds. Paying taxes on time is also a goal.
2. We determine all fixed monthly expenses (5 minutes, based on the accounts for the last month)
3. We calculate daily expenses (food, entertainment, etc.) - well, there will have a little story to write.
4. According to the calculations, monthly we put the funds on the funds, accounts, jars and pockets.
5. We spend money from the fund, which is designed for this waste.
Difficulties
I know from personal experience that it is not always, more precisely, even almost always difficult to switch to such a system of accounting for finances from system-free payment of bills in the order of receipt of funds. It is difficult to do this with the fox finances and, especially, with the finances of the enterprise. Sometimes it takes months. But to use such a system is very simple. You do not need to write down something every day and think whether you can afford it or not, it is enough to put all the jars / pockets in place once a month. And most importantly - in this way you will see where the funds can come from for what you need.
Some believe that in order to apply this method of financial management you need to have a large turnover. This is not the case, and even the opposite - you start earning more when you learn how to manage your finances in this way.
Good luck to all!
PS Write questions, I will answer with pleasure.
Source: https://habr.com/ru/post/88384/
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