Once you have learned how to make money online, and have a number of savings tips incorporated. Now is the time to look at some more general things about money and finances. Do you have control over your own finances? Maybe you spend too much money?
Do you know how much you spend on fixed expenses each month? Is there an overdraft on your account each month? Here are some tips to help you get the situation under control.
Grab the economy
The first step to gaining control of the economy is to get an overview of how your finances are headed. If you do not already have this picture, you should sit down and have the dry facts written down. Find out how much debt you have (student debt, bank loan, debt to friends and family, etc.) – Write this number down.
Find out how many resources you have and what they are worth. Ie You need to find out how many discounts you have, how many things you own, which are convertible to cash such as car, house, apartment, flat, etc. Now you have, then 2 amounts written down: an amount that shows how much you owe, and one that shows the amount of money you own.
Now you can subtract these two amounts from each other and you have what you are worth. Are you in minus or plus? This is a very interesting and useful exercise and it helps you to move on regardless of how your financial situation is.
Create a budget
A budget helps you keep track of how much you spend per month in fixed costs like rent, electricity, telephone, internet, food, household items etc., we can all banks create a so-called budget account. With a budget line will automatically be putting money aside for fixed expenses.
This means you no longer have to be surprised every time you get a power bill. Your account will follow a budget, which is usually to deduct a portion of the amount you have to pay for the bill is on its way. The amount of electricity bills divided by the number of months, which is in between the bills.
This is smart because in this way will pay the same amount every month for fixed expenses. That way, to get an unpleasant surprise every time you pay a bill. Note that you will always have unforeseen bills, but to minimize the number of them, and then a budget can really help.
The most important bills
The most important bill you pay each month is not the rent bill. This is not your power bill. It’s not your Internet account, and it’s not your phone bill. The most important bills you pay each month are the bills you pay yourself! Make sure to deposit money into your savings account every month.
It is important that you do this at the beginning of the month – do not wait until the end of the month and see if there is anything left. In fact, the best thing is to have a chat with your financial advisor and set it up so that it runs automatically.
Decide how much
For example 10% of your income – and have that amount automatically transferred to a savings account each month. The trick is to get automated saving, so you don’t have to think about it every month. But what would you do if you couldn’t afford to save something with your income? No matter how little you earn, it is possible to save money – This also applies to people in SU. $ 100 a month is ticking up. You can’t afford not to save money.
Put yourself in taxes. Taxation is one of the dullest in the world – it can make even the most energetic person fall asleep. But tax is therefore something we have to inform ourselves about. There is no way around! Norway is a country where people pay the highest tax.
Therefore, it is extra important to ensure that you do not overpay. Tax website is a good place to start if you want to know more about tax. They have made a statement for young people who do not have a roof on all the different tax concepts. This guide can now also be perfect if you are an adult. You can find it here.
Do you have debt?
If you have debts in several places, it is a good idea to get the most expensive debt paid off first. How can we decide which debt is the most expensive? Determine what you pay in interest on different loans – loans with the highest interest rate are the most expensive loans regardless of the size of the loan.
That being said, it is also important to find out which of your loans to be tax deductible. You can certainly have a loan with high interest rates, but it can be tax deductible. So this must also be included in the calculation. Here is a good strategy, you can use to get out of debt.
You start paying off the expensive loan at so high a monthly price that you feel you can handle. When the most expensive loans are paid by you yesterday start with the second most expensive. The money you used to pay for the loan of animals, you now use to pay the second most expensive of. And then you can continue until you until all your loans are paid off.
Learn to invest
Once you have paid off your more expensive loan, it is time to start investing. How much do you earn on your bank account, 1/2%, 1%? That’s probably not much more than 1%. There are many ways you can get more out of his money than having them standing in your bank account.
More and more Norwegians are starting to take a share in the stock market, which is a good development. It can be a lot of money to make by putting their money in stocks. It puts a risk in putting their money in stocks, so it’s important not to invest more than you can afford to lose.
It works this way, the higher the risk you are willing to take, the more you can potentially earn and lose. There are many good Danish investment guides for beginners – we have some on our site already.