Many families, especially those who receive monthly income, get into trouble when it comes to managing money to pay the expenses for the entire month, until re-enter home income next month. Then said can not be reached this month. There are many expenses that must be addressed (mortgage, car, food, transportation, schools, etc)
Can we do something to avoid these economic burdens?
Without attempting now to be wizards of finance or give fantastic recipes, we will describe some aspects that can help us improve our situation.
Obviously, the main solution would be to increase revenues and lower costs.
As for increasing revenues, will be something in the medium term, and can pass for trying to improve our technical or academic training to try to improve our jobs and our wages, or find another job with better economic conditions.
The second part, to reduce expenditure, we can implement more effectively and immediately.
Making a monthly budget
Our plan goes through drawing up a monthly budget.
Although we believe that we control costs, having a plan and carry it out scrupulously help us a lot.
On the one hand, we will put the total family income. In the case of income variables, we will put a medium amount prudent not excessive.
As for the fixed costs must be borne in mind that are inexcusable and must be paid: electricity, water, telephone, gas, mortgage and other loans, a community of neighbors, food, transportation to work or school, etc. We will add these expenses and that amount will be untouchable.
If left over, we’ll leave for variable expenses. The remaining contingency will use only inexcusable: drugs, school materials, etc. Try not to spend just to see if we are better off.
There are many ways to stretch this money for nonessential expenses. We can leave the coffee bar and take it at home (20 days of coffee = 24 €), breakfast not out (20 days x 3 € = 60 €), leave the car at home and cycling to work (saves time, money and stress), or use public transport with their subscriptions. We can buy food at cheaper establishments. And go out to dinner later this month, when we see that we have a little extra money. We can also try to reduce fixed costs, such as consumption of light: is it really necessary to have the air conditioning to 16 degrees? It is not even healthy. Or heat in winter to 26 degrees to go home in short sleeves? Maybe we can get to 21 degrees, and go with our very comfortable gown. If we put energy saving light bulbs will save on the bill at the end of the year. Is it necessary to speak both the phone? We will have to put on a monthly ceiling speak only what is necessary. Putting the washer fills and sprays in the taps using less water also.
But the main costs faced by households is mortgage payments. Many times, your payment is almost all of our income. And people keep mortgage because the rental market does not offer much cheaper prices than mortgages. Solving this is not in our hands, but there is a way to soften this economic drain.
In cities, many people have traditionally gone to live in the surrounding villages, cities known peaking bedroom. There are cheaper houses, although their prices are still soaring. In cities such as Madrid or Barcelona, prices of apartments in the suburban municipalities are not very affordable. But in other provinces, you can still save a lot on housing if you’re willing to live 40 minutes away by car. You can save up to half, which will be a great relief payments in the future. And another option is to seek work in areas with cheaper housing (there are provinces with more affordable housing than others.)
In short, make a budget with expenses inexcusable and leave the rest for contingencies. Also, try to minimize the consumption of electricity, water, telephones, gasoline, bars and restaurants.
Not because we always eat more for a better life.