You can control your expenses and thus avoid financial difficulties only by wisely distributing your budget.
The classic way
First, it is worth determining which expenses are the most important and which are optional. First of all, income should be spent on the first group of expenses, and only then on expenses that bring you pleasure.
It is worth planning the amounts for each type of expenses independently. If the amount allocated to cover mandatory expenses is not enough, you can "borrow" from the second part of your income.
If you happen to stay within the set amount and spend little or nothing on entertainment, you can put the remainder aside as savings.
50+30+20
Half of the income under this scheme goes to essential expenses, 30% goes to entertainment, and the remaining 20% goes to savings.
The above proportions can be changed to suit your needs, summing up the results of each month.
Four envelope method
This method involves subtracting from your income the amount you plan to spend on essential expenses and putting it aside for savings.
Distribute the remaining money into four envelopes corresponding to four weeks of the month, and you can spend it.
Didn't have enough for your essential expenses? Reach into this week's envelope. If you did fit into your budget, transfer the remainder to next week's envelope. At the end of the month, add the remaining amount to your savings.
Previously, we talked about whether depression can be prevented .
