Mastering personal finances has become an obligation for all families in our country. The increasingly low salaries, together with job insecurity, force millions of Spaniards, day after day, to make real juggling to make ends meet. That the crisis has hit us is a fact today, but also it is that there are ways to deal with this economic obstacle with a good administration of our personal finances. Do you want to know some of the most used tricks around the world to clean up your accounts? In that case, read on. Futher reading at http://votelordi.org
Personal finance, advice 1. Never spend more than 1/3 of your salary on mortgages and rentals
Mortgage and rental fees must be 1/3 of our monthly income.
If you have ever requested a mortgage loan or have had to rent a property with non-payment insurance, we are sure that you know the 1/3 rule. If you want your economy to not be affected by these loans and to be able to pay the rest of the expenses each month, your mortgage loan or rent must never exceed 33% of your salary (that is, 1/3 of your income). If you self-demand this goal (although some financial institutions grant mortgages that account for 40% of your income), you can clean up your finances and make ends meet.
Personal finance, tip 2. Do you want to buy a car? Use the rule of 4/20/10
To consider buying a car is an important decision for the family economy and for our personal finances. Using this rule will let us know whether or not to apply for a loan to do so.
If you are in this situation and do not have enough capital to buy a vehicle immediately, apply the following rule and you will know if with your personal finances you can deal with this new loan: if you are able to pay 20% of the total price of the vehicle as soon as you acquire it, to limit the debt to 4 years and if the monthly fee does not represent more than 10% of what is paid in total within your family unit, you are financially prepared to apply for this loan.
Personal finance, advice 3. Do you know how to distribute your income according to expenses? Use the 50/30/20 rule
If we apply this rule to our personal finances we will be able to distribute our income correctly in all our expenses, which are divided into 3 main items:
- First need expenses. Destine 50% of your income at most. That is to say, to pay the rent or the mortgage, the feeding, to face the taxes on our goods (car, housing), to cover the needs of transport…
- Secondary expenses Secondary expenses must never exceed 30% of our income. This section includes hobbies, dining or movie outings, concerts, pets, the gym. It is important not to exceed 30% of our income in this section. In fact, the greatest imbalances to control our personal finances are in an excessively high expense within this item.
- Savings and financial obligations. If we want our personal finances to allow us to face unforeseen events, it is important to dedicate part of our family income to savings and to meet financial obligations. The ideal is to allocate 20% of our income to save (ideal situation) or to deal with debts.
We know that today it is very complicated to be able to comply with this rule due to the low salaries and the unstable jobs facing our country. However, it is a rule to keep in mind to know how to properly distribute our income.