Managing personal finances

We all have goals and dreams, and often their realization requires savings. Good planning makes it easier for you to realize them. So find out your earnings, expenses and opportunities. The Martha Accounting and Budget Forms can help you to do this.

Purchases and payments must be planned. Sometimes we have to pay on old commitments for a long time, before we are able to purchase something new. As we can’t have everything we want, we have to decide what is important and what we can do without.

A brief guide to personal financial plan

  1. First, find out your income in order to see how much you can spend without running into debt. Your income includes, for example, your salary, pension and any financial assistance.
  2. Keep a record of your expenses to find out where your money goes. Daily or, for example, once a week, keep a record of your expenses according to your receipts. This also helps you to remember due dates and to prepare for the relevant payments.
  3. Remember to count in your debts as well.
  4. At the end of the year make an annual summary and evaluate the success of your financial plan.
  5. Be accurate when planning your finances; do not overestimate income or underestimate expenses.
  6. Prepare for unexpected purchases or life situations by putting some money aside.

Set financial goals for yourself. Make daily, concrete decisions, such as these:

  • I’ll save 50 euros each month.
  • Next year I’ll manage with only one credit card.
  • I’ll spend less, so I can take a job alternation leave.
  • I’ll make a will in order keep the property in the family.
  • In January I’ll shop around for electricity and insurance contracts.
  • I’m happy with what I have.

Think and act

  • You get leeway in your financial situation either by earning more money or consuming less. Which one is possible for you? Which one would you prefer?
  • Is there something you can and want to save on? What do you do with the money you have saved?
  • Don’t spend more money than you earn.
  • From time to time, think also how you would manage your finances after your working life, or if you should be unexpectedly be left alone.
  • Be aware of the development of the new technologies related to finances, for example new payment methods.