Tips for managing your cash flow

We're talking about personal money at home, but this can also apply to the financial management of your business.

Living within your means

Spend less every month than you earn. This means that your monthly expenses should not exceed 80% of your income. This means that you should leave 20% of your salary aside for each month. You just need to frame your expenses and pay only the essentials. If you have 2,000 euros net per month, you should only spend 1,800 euros net per month on expenses, whether incurred or desired. To manage your resources well, you must have money available. This 20% will allow you to create security funds, or to invest, or to save on taxes.

Do not get into debt

Not getting into debt means not taking out credit in any way. Paying back credit is very expensive, so you should be careful. In interest or insurance, there is money that you give per month, and you have no control, which means that you are being scammed by the banks in some way. The only loan you can take out because you don't really have a choice is the home loan. The car is debatable, although they are expensive right now, you can always opt for a used car. But it is possible not to go into debt to buy a car. No consumer loan, no loyalty card, because it is toxic and you only get into trouble for it.

You don't need your banker to decide

The banker didn't take a course in financial management, he is there to sell the products of the bank where he works. So, he will just sell bank cards, loans, bank accounts, insurances, investments that are not necessarily advantageous for everyone. The banker doesn't care how much money you make per month, he only looks at the numbers and he want to offer you something because he earns commissions for it.
Finally, it's always important to get a little bit of background before falling into a personal investment to follow the rules, and avoid the risks.

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