Manage your personal finances without grueling logging of every purchase

    To catch up with the recently run topic on family budget in Google Docs , I’ll tell you how to easily manage personal finances without exhausting the journal of all cash flows using the “industrial method” used in commercial organizations.

    What does the financial director at the enterprise do? That's right - it makes sure that the company does not spend more money than it makes, and also has funds for the tasks in the future. The words that the financial director most often pronounces: “we cannot afford this,” the director can hear, at times, is very strange, after all, is there this money in the account?

    The fact is that when we earned 10 thousand rubles, it seems to us that we can dispose of all these funds, in fact, this is not so. We need to pay rent, taxes, loans, buy food, set aside for clothes and other purposes, and only spend the rest. Of each amount earned, we can usually spend only a smaller part of it and we need to determine which one.

    Yes, sometimes this requires a specially trained person and even a department. But the principle itself is quite simple, you can apply it for your own bookkeeping, you yourself will be the Findirector.

    Three rules of a findirector


    1) You do not own all the money that you have . Because: firstly, the money is flowing, and secondly, most of the money is not yours - from the amount that you have earned, you need to pay permanent ulsugi (rent, loans, taxes, etc.) and, in fact, you just keep it temporarily at your place. But there is good news, you are the owner of cash flows and you can manage them. Some flows bring you money, while others carry you away. But it’s up to you to decide which flows where to direct. You only need to evaluate them correctly.

    2) You (like any other organization) always spend all the money that came to you.No matter how much money you make, in the end you spend everything, the only question is when and for what. There is always not enough money. And therefore, you need to determine what you will spend them on before you earn them.

    3) In order not to be just a pipe through which cash flows (even large ones) pass, but to accumulate something, you need to understand what exactly you accumulate and when you use these accumulations . The piggy bank in which you send these funds is called a fund. For example, "Bicycle Fund." Based on when you want to buy a bicycle and how much it costs, the necessary rate of replenishment of this fund is calculated. For example: 2 thousand rubles a month.

    Actually the technique.


    I will show by my own example, although exaggerated. Since I am not only a natural person, but also an Honest Entrepreneur, but the amount of funds and the frequency of transactions for PE are not large - I maintain a general budget for both personal funds and PE. I have a monthly budget.

    So:

    I. We consider constant monthly expenses.

    1. The rent and household needs - 10 thousand.
    2. Credits - 28 thousand
    3. Food - 10 thousand
    4. Fuels and lubricants - 3 thousand
    5. On a pocket, gifts - 3 thousand

    II. We determine the found goals and funds under them.

    • At the end of the year, I need to pay 12 thousand to the pension for individual entrepreneurs. So, I am putting it off to the tax fund at a speed of 1 thousand rubles. per month.
    • I still need to deduct 6% from each income by IP quarterly. I know the average income per IE per month - 100 thousand. I transfer respectively 6 thousand rubles to the tax fund every month. The tax fund is in my savings account with a bank. I also get interest from him)
    • In a year we buy things, on average, for 60 thousand. That means I will put off the gear of stocks at a speed of 5 thousand per month. The inventory fund I have is a separate plastic card (red)
    • I spend 36 thousand on maintenance cars per year. That means I will save 3 thousand each month in my automobile fund. I put them in a bag with documents for the car.
    • Contingency Fund (NC). I set its size myself, based on my own income. The speed of its replenishment is 5 thousand rubles. date of use is not defined - when needed. Savings account with a bank.
    • To the boat. I want to buy a boat worth 300 thousand a year later, which means I save 25 thousand a month. Savings account with a bank.
    • Since I was lucky and I already created myself a small “candle factory for old age”, I don’t need to transfer to the pension fund, and I put all the funds that remain after the distribution of funds into the boat fund, thus accelerating its appearance.

    III. We monthly disclose the income on funds / accounts / jars.

    1. Since daily expenses are spent only on the items: “food”, “fuel and lubricants”, “pocket”, I only transfer this money to my settlement card or put it in my wallet. Actually, only this card and wallet are the source of all daily expenses. The amount is not large and has only three directions of expenditure, so it is easy to control it without maintaining records. In extreme cases, you can use the method of "4 envelopes . "
      Of course, in order to determine how much money you have, on average, spending money on these items every month you will have to take notes for a month or two. But this is enough, since the size of all other expenses (loans, taxes) is fixed and known, it makes no sense to write in the journal that here, again, I paid such and such a loan from the account - you will pay it anyway when you once a month lay out your arrival in jars (see paragraph 3).
    2. According to the established rules, we distribute funds for the funds;
    3. For fixed-cost items (rent, loans), payment is made immediately after the cut of income (well, more precisely the next day), so no jars are needed for them, I just put it in a separate pocket and went down the next money I paid.


    What are funds in the case of a personal budget? Yes, anything. This is a herring jar, pocket, bank account or plastic card. The main thing is that it regularly receives funds at a set speed and is spent only on the target. Otherwise, it will be misuse of funds :)

    I am a supporter of strict separation of funds into separate accounts, this allows me not to keep a journal (you can always see the account statement), although it is possible to use one account (jar) for several funds, though then you have to keep a record of which part of its funds is aimed where, but just do not want to do this.

    Summary.


    1. We determine our goals - the amount, term and calculate the rate of replenishment of trust funds. Paying taxes on time is also a goal.
    2. We determine all fixed monthly expenses (5 minutes, based on bills for the last month)
    3. Calculate daily expenses (food, entertainment, etc.) - well, here you have to write a little notes.
    4. According to the calculations, we monthly lay out the funds for funds, accounts, jars and pockets.
    5. We spend funds from the fund that is designed for this waste.

    Difficulties


    I know from personal experience that it is not always, more precisely, even almost always difficult to switch to such a system of accounting for finances from unsystematic payment of bills in the order of receipt of funds. It is difficult to do this with fox finances and, especially, enterprise finances. Sometimes it takes months. But using such a system is very simple. There is no need to write down something every day and think whether you can afford it or not, once a month it is enough to put everything in jars / pockets. And most importantly - in this way you will see where the funds for what you need can come from.

    Some believe that in order to apply this method of financial management, you need to have a lot of turnover. This is not so, and even vice versa - you begin to earn more when you learn how to manage your finances in this way.

    Good luck to all!

    PS Write questions, I will answer with pleasure.

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