Personal finance - why do we fail ?

In theory it's a piece of cake, right ? Practically, however, it's a living hell. In this article i'll give you few tips which will help you conquer this matter.
Before we continue you shoul ask yourself the following: Have you actually made a personal or a family budget before? And have you succeeded in following it? My guess is that a lot of you guys have made or tried to make one, and that most of you failed going by it. Here are a few pointers.


1. Cutting off the entertainment


Most people , when making their budget put in all monthly bills , the cost of transport and accommodation , and the rest of the money you saved in " Food " . What you get? Entertainment all absent from the budget. Even if you do not have large financial resources , put in your budget and one column. If you 're not having fun , your chance to failures in financial planning increases significantly .


2. Be sure to include the unexpected and recurring costs


There are many bills you pay each month and it is easy to provide and include in your budget , but there are costs that are only once a year or every few months. These include car insurance and taxes for the property. To be honest your budget , you need to include these costs in it. If you need to keep accounting principles , the annual cost should divide it into 12 equal pieces and include one each month. I recommend , if the costs are not so great to include them in the current month to you more easily.


Another type of costs that once every few years overhauls home and car. Most people forget them when it comes time for them , run to the bank to withdraw credit, which could hurt their financial situation.


3 . Have too high expectations


Spend a little time to make a budget and when you are ready you think it's perfect and all costs are included. At the end of the month , however , we find that you are overspending 300 or 400 lev . How did this happen? You've probably forgotten a bill or have underestimated certain type of costs, such as those living or for food. The conclusion is that there is no way to make a perfect budget right the first time . At least the first few months , you will need to " set" your budget.


Here I have one piece of advice that I have " stolen " by Robert Kiyosaki . Although not all of its principles are applicable in the country, this is definitely quite useful . And it is " Pay yourself first ." How does it work in practice? When you receive your salary or other income , the first thing you need to do is to allocate a certain amount to invest and you will earn income in the future. The amount depends on you, but it's good to start to at least 10% of your income .


Man becomes rich does not work, but at home, where she decided how to manage their money wisely . Rich can only be a person who left him some money and can save them . Even if you get 10,000 lev salary if they spend all will never become financially free . This is one of the principles in the " Circle " of money , which I presented during my lecture in the University .


4 . Using the wrong tools


 Do you use the right tools for your personal expenses and budget? They are easily accessible you are in your phone or tablet ? You reflect your way of life ? Can you quickly find a new negative trend or opportunity to reduce your costs?


An instrument is only as good as you know its features and functions and requires no effort to use. For some of you this may be a site that has a mobile version (or only mobile application ) , others - most useful tool may be just a piece of paper and a pencil with an eraser (the . Word 1.0 redaktorJ ) .


I went through several instruments. Start recording costs and lead to budget on paper , then went through various websites and mobile applications (which was not as good , even lost data from a site because it just disappeared ), and finally back to basics. Now record your expenses in a notebook and at the end of the month they will move in excel spreadsheet. Family budget compilation of him every first day of the month on a sheet of A4.


And the last reason to fail is the power of habit. Everyone is accustomed to doing specific things and pass the same time every day , month after month, year after year. Any change threatens their internal order. They can not understand what positive things will bring them a little diversion from the beaten track , and as you know, a new habit is created just for 21 days.


So if you deal with these obstacles to development and observance of your personal or family budget will be one step closer to better your financial future . This life will become much easier and will be prepared for different situations.


Remember that the whole country can go bankrupt if they do not comply with your budget and spend more than you can afford. The example of Greece is instructive. As for our personal budget , it can happen much faster than our southern neighbor , and we have no one to save us.


No matter what is bothering you today to compose a personal budget ?Remember one thing! Tomorrow may be too late ! Good luck!!!