Managing your finances well is essential as well personally as in business or family. Mismanagement leads to over-indebtedness. Getting out of such a financial difficulty turns out to be difficult thereafter. You might as well respect the following 5 basic rules to avoid trouble:
Personal budget – savings – investment: the winning trio of successful management of their personal finances
Drawing up your personal budget and following it to the letter is one thing. Investing is another. It involves making your money grow. There are different ways to do this. Among these are savings. One can also resort to financial loan or credit. The mortgage is a good financial investment for the owner. Consumer credit provides much more freedom.
The budget envelope rule for the family budget
The principle is to list all expenses and income. The former are categorized into fixed, variable and exceptional expenses. The latter can include wages, family allowances or alimony. Then withdraw the cash money. Put the different amounts provided for each type of expense in an envelope that you will mark. Always set aside money for the unexpected. To fill the void, you can always apply for a personal loan. If the need is urgent, you can apply for fast credit.
The basic rule for better management of your corporate finances
The foundation of this rule is the special attention you should give to the finance function. The purpose of this function is to increase the turnover of the company. Its intervention is preventive. Take stock of the threats in order to better predict, then follow your investments closely. Don’t wait until the problem arises to seek funding.
Two rules common to corporate, personal and family financial management
The use of financial management tools is of great help. This is the first rule. Take advantage of the innovations brought by the digital age to manage faster and better. Some mobile applications allow you to calculate the profitability of an activity. Others are able to assess your debt. This will allow you to make strategic decisions. Online simulators allow you to choose the type of credit that’s right for you. So, for example, you can opt for the particular loan instead of revolving credit. The choice is made according to your situation and your financial profile.
The last rule is a calculation rule. First, review your finances often. Make it a regular watch. Then check that your revenues are greater than your expenses. If not, look for other ways to attract money to you so that you don’t get into debt.