If you, like so many others, live on a monthly budget, managing your finances can be daunting. The first step in making ends meet is to create and stick to a budget; then, use strategies to increase income and reduce expenses.
Steps
Part 1 of 3: Create a Budget
Step 1. Create a budget
Use a spreadsheet with Excel and write the type of expenses in the first column. Indicate the months of the year in the lines.
- In the first line, write the titles.
- Your expenses should include categories such as: housing expenses, transportation, food, telephone / internet, health, interest payments, meals away from home, clothing and leisure.
- Plan a budget that will cover at least the next 12 months.
Step 2. Add a separate line to record your gross and net earnings
If you are married, include the income and expenses of the whole family. The expense for the whole family will be much greater.
Step 3. Don't spend another penny without first recording it in your budget
To begin, group all your receipts, receipts, credit card accounts and bank statements; then, it records the expenses made last month.
- Whenever you find a receipt that doesn't fit into your expense categories, add a new category to create an accurate view of your expenses.
- Download the Mint application for your smartphone or use the computer version. This application records expenses and automatically adds them to your total monthly budget, helping you to keep your financial situation under control.
Step 4. Subtract expenses from your income
If the number is negative, it means you are in debt, so you will need to create a different strategy.
Step 5. Analyze your expenses carefully
Look at your monthly expenses, such as meals away from home, travel, or shopping for clothes, and see which ones you can eliminate or reduce.
Part 2 of 3: Cut Down on Expenses
Step 1. Evaluate the shipping costs
Cut costs in half by taking the bus or suggesting that your colleagues share the car to go to work. Buy a monthly bus pass if needed to reduce gasoline and maintenance costs.
Step 2. Buy in bulk by taking advantage of offers
If the cost of shopping is high, do not buy at the neighborhood shops. Look for offers in hypermarkets and fill your fridge; eating at home costs much less.
Step 3. Move to a house where rent is cheaper if the rental costs are too high
Experts advise that housing costs should not exceed 30% of income. If you fall under the poverty line, try applying for a council house.
Go to the ISTAT website https://www.istat.it/it/prodotti/contenuti-interattivi/calcolatori/soglia-di-poverta to calculate the absolute poverty threshold level and to see which category you belong to
Step 4. Contact your city council and ask if you are entitled to income support checks
If you are within the absolute poverty line, go to the municipal offices to check if you are entitled to family allowances or tax breaks.
Step 5. Ask your boss if you can work from home some days of the week
This way you can save gasoline and transport costs.
Step 6. Buy clothes at second-hand clothing stores
You can find good quality clothes that still look new if you search carefully. Also, resell the clothes you no longer use on the Internet.
Step 7. Rent movies, music and books at your city library
Many libraries offer a large selection of films, books and CDs. To further reduce your monthly expenses, if you have a gym membership, cancel it and rent a training program DVD.
Step 8. Contact your creditors and try to find a solution for managing your payments
Try to organize a different repayment schedule, such as a payment by installments, instead of letting interest rise.
If you have accumulated debt, it is best to act as soon as possible to reduce interest or bank charges
Step 9. Collect discount coupons for shopping
You can save money on the purchase of food simply by paying attention to offers and using coupons.
Part 3 of 3: Increase Your Income
Step 1. If you have lost your job, apply for unemployment to the INPS
Go to the INPS offices or consult the online site to check if you are entitled to receive an unemployment allowance.
Step 2. Ask to be allowed to work overtime
Your business may need someone to work late or on weekends; you could be their wild card.
Step 3. Turn your talents into cash
Advertise in local newspapers or specialized websites to offer your services, such as repairing computers, moving house, house painter or dog sitter, and so on. You will be surprised how many people are looking for an extra hand.
Step 4. Work as a dog-sitter or babysitter by posting or searching for advertisements online
You can greatly increase your income by offering this type of service; if you have a spacious house and a beautiful garden, you can also take dogs into foster care during the owners' holidays.
Step 5. Sell items on eBay
Go around the house and sell anything you don't need to cover expenses.
Step 6. Ask your friends for help
Don't ask for money unless absolutely necessary. However, your friends may need a hand to do something or they may point you to a part-time job that is right for you.
Step 7. Look for work online
On the Internet you can find many sites that deal with online jobs, such as transcripts, marketing, surveys, site review, etc. Make sure the job is genuine before providing financial information.
