Finances for a Balanced Life > Personal Finances for a balanced life
by Lars Sudmann, May 8, 2008
Are your personal finances in control? Do you worry at times about your financial situation? If yes, you have identified one of the key drivers for stress, and for a life out of balance.
So, how do you turn your finances into a 'stop worrying' machine? Here some key tips:
- Get an overview on how much you spend every month. Make an estimate for each of cost categories. This can be a fun exercise for a weekend.
- Track your exepenses for one month, to see if it matches your estimates. Many people are surprised by the outcome. Look at it as a challenge. Write down every pound, euro, dollar etc that you spent.
- Get an overview of your 'net worth'. That is, all of your assets (e.g. savings, stock portfolio, real estate, ...) and all of your liabilities (e.g. car loans, credit card charges).
- See how much of your monthly income you can save. Go for at least 10% of your gross monthly income.
- Put it on 'automatic'. The less you have to bother and worry about financials, the better. Have a monthly deduction from your account to your savings account and/or portfolio.
These are some easy steps, that by following them regularly, will put you on track that you do not have to worry about your financial situation any more. The key is true and honest knowledge about your financial situation.
This tip for life balance is launching a series on 'Finances for Life Balance', so stay tuned for our updates.
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