I will tell you a short story how I got ecounter with the topic money. I was 18 when I started my apprenticeship. In this time I earned about 400 Euro a month and I knew nothing about how to save money for later. So I decided to consult someone who should help me out. The man sold me an active managed fonds, where I had to pay 50 euros/month. I was young and stupid, so I did it. Years went by and the stock market had boomed. So I decided to sell the papers. Through many purchases and sales plus the management fees I had less then I paid in. Here I realized, that I had to take care myself of my hard earned money.
Here are the three steps how to get your cash on track!
Step 1: Find out where your money is flowting!
Here is a slow and a fast way. If you prefer the fast way, then take your last additions and sort them into spending categories. What is probably missing here are the cash expenses.
If you prefer the slow and accurate way, then buy a small notebook and write down all your expenses. Then create an excelsheet and at the end of a month note all into it. Et Voila you know where your money is going.
Step 2: Find saving potentials!
Here it is a little bit more difficult. Actually you know where you spend your money. But now you have to ask yourself “DO I NEED IT?”. Do I need every morning on the way to work an expensive coffee and a sandwich for 7,50 euro? Just multiply the working days with your daily expenses. Then you know your saving potential.
Step 3: Invest your money!
Invest your money and let it work for you. I know money does not work. But it should not be steadily less. If you leave your money on your check account, where you get an interst of 0,00%, then the inflation of 2,00% eats up your money.
As I will proceed in the individual steps, I will show you in the next weeks.
Where is your saving potential?