Avoid these expenses that destroy your monthly finances

Nowadays, it is very important for people to learn about proper money management, because in this way they can economic stability.

You should understand that expenses are a fundamental part and you should pay careful attention to this area.

In this sense, it is necessary to identify the various Types of expenses that existBecause this way you can avoid financial imbalance and control your finances in the best way.

Expenditure, which is defined as the disbursement of money for specific goods and services, must be linked to the level of income and purchasing power of each individual.

It is recommended that you first establish a budget that considers aspects such as income, savings, fixed and variable expenses, as well as debt payments. According to the BBVA Bank portal, within expenses, there are several types that can negatively affect personal finances if they are not properly managed.

• Ant Expenses: Refers to small, frequent disbursements that, although they may seem small, can add up to a significant amount at the end of the month. Common examples include impulse purchases or the daily coffee.
• Flexible Spending: These are unavoidable payments, but you can control the amount spent on them, such as gifts or entertainment. Not setting limits for these expenses can lead to financial imbalances, which is why he recommends setting an amount at the beginning of the month.
• Poorly Planned Fixed Expenditure: These are essential disbursements, such as payment of rent or basic services. However, if they are not employed, their income may exceed 40% of their income, which may limit their ability to save and generate long-term financial problems.
• Highly Variable Expenses: These do not have a specific fixed amount, as they depend on the individual’s needs, such as unplanned purchases or excessive credit card usage. These types of expenses can harm your finances as you may not spend properly and end up spending more money than expected.
• Emergency Expenses: Although they are unexpected expenses, such as emergency repairs or urgent medical expenses, not having enough savings or an emergency fund can compromise your finances. To prevent this from happening to you, it is recommended to save a portion of your salary for this type of situation.

Leaving these types of expenses out of the budget is one of the most common financial mistakes. And potentially harmful. Identifying and managing them effectively is essential to maintaining solid finances and achieving your long-term savings goals.

Recommendations to save

• Create a budget: Keep detailed records of your monthly income and expenses. Allocate money for basic needs like housing, food and transportation, and allocate a portion of your income to savings before considering other expenses.
• Automate your savings, Make automatic transfers from your checking account to a savings or investment account. This will help you set aside your savings and avoid the temptation to spend it unnecessarily.
• Reduce unnecessary expenses: Identify areas where you can cut expenses, such as eating out, entertainment, or unused subscriptions. Small adjustments can have a significant impact on your ability to save in the long run.
• Avoid unnecessary debt: Limit credit card use and avoid taking out debt to finance purchases that you can postpone or pay for in cash. Prioritize payment of existing debts and try to maintain a good credit history.