The price increases made us all tighten the family budget and monitor expenses more closely. The monitoring process allows observation of our financial habits and a deeper acquaintance with the pattern of current expenses, and those that come from a different background such as emotional expenses. The follow-up work also allows us to come up with mistakes we have made, prices that have changed or double charges.
Monitoring of expenses can be done using simple Excel software, through independent applications or through digital services of various financial entities. However, in this article, we will put Excel and the applications aside, and deal with a number of financial habits that can make it easier for you to monitor your current financial conduct, and even make it more efficient.
Preparing for big expenses
If you expect large expenses from the current budget, it is necessary to prepare for them. You can do this using the Paybox app. For example, if the annual cost of car insurance is 2,400 shekels, you can open a group on Paybox called “Car Insurance” – and transfer 200 shekels to it every month. In this way, when you pay the car insurance, you will have the full amount.
For the parents among you, using this way you can also prepare for the summer months. If you know that in August the expenses increase by 4,500 shekels because of the small children and spending time with the children – open a paybox group and every month put 400 shekels into it. This way, you can prepare for large expenses in advance, and stay with the actual amount you have for the current monthly operations. Please note: this method is only suitable for preparing for current expenses during the year. If you want to prepare for higher and more distant expenses, such as changing a car in five years, to invest the money in order to achieve and increase the amount available to you.
Smart handling with credit
In general, it is better to use one credit card. Multiple credit cards make it difficult to keep track of expenses, and moreover – an easier hand on the trigger. In general, one credit card should meet your needs. If you have a family, you should make sure that the various cards belong to clubs that offer benefits that suit your needs.
At the same time, it is possible that having another credit card is essential for you, for example for the regular and well-known expenses of the family, such as kindergartens, bills, insurances and the like. If you find it difficult to keep track of current expenses, using an additional credit card may help you consolidate all regular payments. This card will be kept at home and will not be used for regular consumption.
What is the advantage? At the end of the month you can easily check whether there has been a change in fixed expenses, whether promotions have ended and whether you are paying for services you no longer use. If you chose this method, you should use the “fixed expenses” card as a card for which you will not pay a cost fee each month.
One or separate account?
Just as there is no reason to increase the number of credit cards, there is also no reason to increase the number of bank accounts. The question of how many bank accounts is needed is a question that comes up many times when couples get married and are debating whether to merge accounts, or keep separate accounts and another joint account to which money is transferred every month. Well, this is a technical matter of convenience – the basis for establishing a good and functioning economic family unit is the coordination of expectations and trust; These can also exist within separate accounts, and can not exist even within a joint account.
Why should you pay attention anyway? First, if you have a joint account – it means that you both have access to it. Second, if one of you has an independent business, the business account should be completely separate from the home account. Once a month, on a fixed date, it is recommended that you transfer a fixed amount of money from the business account to the home account according to the needs of the family, and build the home budget on that basis. That way, even when you are self-employed, you can add a regular “salary” from the business to the family budget, which will allow you to make plans and build a budget. In this way, your family income will be kept constant. Plan the transferred amount, so that there are no shortages in the business account.
Big deals at the initiative
did you get a call Are you offered wonderful insurance against shark bites and lightning strikes for only a shekel per day? Special price because tomorrow there is a reform and they won’t sell this insurance anymore? stop Do not load the credit card with long recurring expenses that you did not initiate.
Any long-term expenditure should be made according to your needs – only after you know that the product does indeed fit your requirements and if you have done a price survey.
Did the revenue increase? We will wait
Along with monitoring the current expenses and investments of the funds, two important issues in themselves, there is a third aspect – increasing the income of the family unit.
Increasing income is a key to making dreams come true. At first glance, another NIS 2,000 a month will allow you to direct money to investments and long-term goals. However, many times when the income goes up, the expenses go up at the same time. Whether it stems from a sense of euphoria (“there is more money in the pocket so you can let go”), or whether it is out of a desire to be compensated for the hard work. Many times, the expenses increase more than the income, with an optimistic view of the ability to increase the income. But this situation may cause digging.
When the income increases, you should pay attention to where the surplus is directed and whether it reaches where you are interested.