Archive for September, 2013

The art of handling your Economy

Wednesday, September 25th, 2013

Once you’ve grown up and become an adult, your economic situation becomes a more central part of your life. During the childhood and teenage years, your economy is often handled by your parents, which means that you don’t really have to spend too much time thinking about it. But as soon as you leave your parents house and get your own apartment and your own job, it becomes much more important to start monitoring your expenses in order to create a good future for yourself.  This is not always so easy to do, as you are probably used to get money from your parents, and have them buy stuff for you, so it’s important to create a habit of constantly keeping these things under control. Sure, some of us will still get financial help from our parents after we’ve moved out, but we can’t expect it to be as often, and even then it’s important to learn about personal economy, because eventually the time will come when you have to make a living for yourself.

Still, a lot of young people today always seem to struggle with paying the rent and bills, although it could have easily be avoided. The most important thing when it comes to keeping your economy under control is to have motivation and will power. It’s easy to think that you can afford certain expenses today without it having to affect your economy later in the month, but if you are not careful, you might end up having no money left to pay your rent when the end of the month comes around. So, the best thing to do in my opinion is to create a rent and bill account in your bank. This means that you set up a separate account from the one that you normally use. When you get your monthly salary, you then immediately put aside the money that will be needed to pay these things. You will then not allow yourself to go in to this account and take money out in order to buy other things.

So, now that you have set aside money for the two most important expenses in your personal budget, you will have a certain amount of money left to buy other things. Of course, you are going to need necessary things such as food, toilet paper, kitchen stuff and whatever else that is needed in order for your life to function normally. The rest can be used for things you enjoy, but don’t necessary need, such as movies, clothes, partying and similar things. However, I strongly advice you to set aside a certain amount of money each month in a savings account. It’s always good and secure to have money saved as you never know what will happen in the future. If something unexpected happens and you will suddenly get expenses you didn’t account for, you can then pay them by using your savings account.

For more information about personal economy, try visiting sites like EuroConsumer, which is an economy portal that has loads of info on economy, loans and insurances!