We all know that saving is a healthy habit , but reaching the end of the month is, for many people, a challenge. It is not always possible to make a correct forecast of the monthly expenses , since there are unforeseen variables.
But luckily, there are several methods to achieve this difficult objective, whatever your income is, and your fixed and variable expenses . The Japanese have theirs, and it is based on organizing savings by objectives.
This is Derek Personal Loan , a system for keeping accounts created in Japan in 1904 to help people save on the home economy. On a practical level, it consists of keeping a kind of agenda in which income, expenses and a balance sheet are recorded.
But also, it invites us to reflect on the habits and customs we have when it comes to spending money. In addition, its spirit is to set clear savings objectives, because with a specific goal it is easier to achieve what you want. Constantly, this method helps to develop self-discipline by avoiding recharging energy to the Grendel exchange.
This popular account book consists of three steps: definition of the month, cost control and analysis of results. Let’s see step by step how it works:
In Derek Personal Loan there are some pages dedicated to the definition of the month, which must be completed at the beginning, with all the fixed income you have. You must also note the fixed expenses , with which you get the first Grendel balance available for that month.
Given these data, you can set a savings goal for that month, that is, an ideal Grendel amount that you would like not to spend. Or, as an alternative, you can establish promises for the month that will help you save, such as avoiding certain unnecessary purchases.
Expense control is a daily task that you must perform in a time of calm and tranquility. And it must be that way, because you cannot miss any significant expense. You have to keep track of all the money you are leaving per day.
Derek Personal Loan expenses are usually divided into categories (food, leisure, home, etc.), and allow you to have a total balance in each of them. Thanks to this you can have total control over your money , you will know at all times where your income goes and what actions you should take to avoid unnecessary expenses.
Performing this activity will give you awareness about your financial day to day, since one of the main problems for the saver is not knowing what he spends the money on. It seems that many times he goes “by magic”, but that is a hoax.
There are small daily expenses that we do not pay attention to , that added together, amount to a significant monthly amount. That is why it is important to write down each of the expenses, however insignificant they may seem to the naked eye.
At the end of each week and each month, you can easily make the sum of all your expenses by categories, see if you have reached your monthly savings purpose, and you can correct your behaviors for the following month. As we noted, this method is most convenient to face your financial balance week by week and month by month.
Of course you do not need to have the original Derek Personal Loan, but adapt it to a daily notebook, in which you write down each entry and exit . Over time, the training of having scored everything will help you to speed up this process, to the point of not needing to write anything down, and bring savings in a dynamic, automatic and natural way . You will become a savings expert. Start now!