To have personal finances under control, you need a system and an overview. 

Do you know why many people have problems dealing with money? Because they lack an overview of their own financial situation. So before you seek for personal money solution to get cash, you would like to see the whole scenario of your finances starting by tracking your personal income and expenses. Your financial vital parameters form the basis for this.

How to Properly Manage Your Money

Here are specific tips on how you can better control your everyday payments.

1. Write everything down

If you want real control over your personal finances, there is no way around routine logging of your income and expenses. You can use a notebook or household book in a classic way.

If you like digital solutions, you can also use an app or other software for budget planning. With a finance app, you always have your household book with you and can keep control over your personal finances in just a few simple steps. The apps are often free of charge. The most popular finance apps include:

• Moneywise
• VSB financial planner
• Money Journal Lite
• My finances
• Money control

2. Set yourself a spending limit

An easy way to limit your daily spending is to set a daily spending limit. It is best to take an hour or two at the beginning of a month and check how much money you have at your disposal in the coming month. Basically, you should always try to pay debts and bills first. This will prevent you from getting into a financial emergency.

3. Plan your purchases

Before you go shopping, make a shopping list. This will prevent you from buying things you don’t need or spending money that you don’t have. If you want to go shopping, set a budget beforehand, which you can then use freely.

4. Use a multiple account model

This way requires a bit more effort but is very effective to keep an eye on personal finances. Instead of one account, you open several and assign a specific purpose to each account. For example, you could open three accounts to get started. You use the first one as a normal checking account. Here you receive your salary and pay the fixed monthly expenses. You use the second account for annual invoices. This way you guarantee that these will be paid on time. You can use the third account as a leisure account. There you pay a certain amount each month, which you only use for extras.

In this way, your necessary expenses are always separated from your leisure expenses and you do not spend more money than originally planned.