Given my past experiences, I cannot emphasize enough the importance of doing accounting for your personal finance.

Through practicing this skill, I’ve managed to budget for myself, save, and invest wisely in the capital market. And today I am going to show you how I achieve those things.

Before taking on any bold attempts, there are some preparation work: setting specific goals and evaluating current personal finance situation. Setting a clear and determined goal is extremely essential because we need to first understand why we are managing personal finance. Given my past experience, the more specific the goal is the better possibility of success. For example, you will find yourself more motivated if you want to cut some of your travel expenses to buy a phone than just aim to save money in general. After having a motivation, complete evaluation of your personal finance is needed. When we make an investment or perform accounting work, we need to be as realistic as possible so then we can tailor our strategies to meet the goal we set for ourselves.

Now let’s see how I was able to become a master of personal finance:
The first approach I have taken is to record my expenses and income monthly. It could be as simple as writing down my expenditures line by line in my notebook to making a spreadsheet in excel. I benefit from this method tremendously because I can see where my cash flows in and flows out. I can gain a better understanding of the breakdown of my expenditures, so I will know how much to budget for each one of the sectors in expenses. From analyzing the cash flow, I will also know whether my income will cover my expenditures; if it will, it means my budgeting is efficient and if not, I’ll need to cut down unnecessary purchases.
The second approach comes in handy when I want to purchase something but I could not afford it at this time. Then I’ll simply make a sheet of my saving plan. For instance, if I want to purchase a $500 iPad in three months. The first thing I will do is to break down the total expenditure day by day. Use the $500 divided by 90 days, and as a result, I only need to set aside $5.5 per day to purchase this brand-new iPad in three months. Wow, that doesn’t sound a lot, does it? Then I simply put five dollars in my savings each day and then I can afford the product. You may think this method is obvious or too simple, but through the process of organizing your thoughts and implementing this project idea, you are mastering the art of savings and you will be surprised at how much people can spend without any planning or organizations.

Here, here, I have told you the solutions to budget the deficits you are currently facing. I hope you all can benefit from my suggestions and become a master of your finance.

Author's Bio: 

I am an editor at Ubund, a platform that consolidates consumer power and helps reduce the monthly bills of consumers.