How to increase savings in a domestic setting

Madrid

In practice, a family functions like a company, with money coming in, outgoings, investments, losses and earnings occurring over a specific period of time.

Below are six tips to help you handle your family's finances.

  1. Organise all your documents into files or dividers, including your receipts, bills, pay slips and bank documents. Explicitly divide outgoings and income, placing each of these two separately in the divider for the corresponding month.

  2. Record all movements digitally on an Excel spreadsheet. This will enable you to draw up a calendar-based budget.

  3. Forward planning is essential for the most accurate control of your finances. Make a note for each month of your expected outgoings and income.

  4. Once this planning stage has been completed, it is time to set some goals. When defining these, to be as accurate as possible they should be set based on your designated budget.

  5. Design a strategy to reach the goals you have set yourself; at this stage, it is essential to identify which of your outgoings are dispensable and which are unavoidable. We will have to purge any that are superfluous.

  6. When the year ends, we should evaluate which points need to improve on by identifying areas for improvement and modifying any detours we took. Completing a final assessment is essential.

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