VLV-Discover how to manage your expenses correctly-woman who manage her expenses correctly

How to manage your expenses correctly? Managing money correctly is not an easy task. We often fall into different temptations where unnecessary expenses can play tricks on us, or sometimes, we do not have enough money to save and have support in case of need.

However, with good financial planning, you can create different strategies to better address the different scenarios and situations in your life.

In this article, we will show you how to manage your expenses correctly to start saving in the best way.


Process financial planning


  • Set your objectives in order of priority.


  • Define deadlines to achieve these goals.


  • Identify your goals and create a budget for each one (open a savings account or create new sources of income, for example).


  • Measure and control your financial decisions so you don’t lose control and discipline.


Advantages of knowing how to manage your expenses

The most significant advantage of learning to manage your costs is that you can start saving to develop your projects in the future. This is an opportunity that everyone should make the most of.

There are many ways to improve your personal ability to save. Others require a little more time, as is the case of allocating a monthly income for investments.


How can I start saving?

1. Follow the 30-day rule

It is the most straightforward practice to implement but at the same time the most difficult to follow. After a month, you will either have forgotten about the item, or your urge will have subsided.

2. Save the leftover money, manage your expenses correctly

Nowadays, the surplus money that we handle is little, thanks to the facilities of plastic money.

3. Limited budget

It is operating with an expense cap. In the case of debts, banks usually recommend that the person not go into debt for more than a range of 60% -70% of their total income. The same rule applies to your expenses.

4. Eyes on the target, manage your expenses correctly

Never enter a store or supermarket without clarity of what you need to buy.

Have your list handy on your cell phone or paper. Check the expiration date. For everyday grocery products, the expiration dates may be closer to the day you bought them. But if you want to freeze or store in the pantry, better buy freshly labeled products.

Take advantage of the day’s discounts. It is always good to check the catalog or the discount magazine because it includes many primary consumer products.

5. Apply automatic control

Get organized by paying home or personal expenses in cash and automating large amounts in essential services.
Use petty cash in an amount that suits you.

Leave the credit or debit card for larger purchases or fixed expenses, or organize payments using the Automatic Payment with Checking Account (PAC) or Automatic Payment with Credit Card (PAT) services.

6. Save gradually, manage your expenses correctly

Set yourself a low saving limit that suits you initially; that does not exceed $10 thousand in the front.

Every one or two months, reevaluate if you can increase that amount a little more by an amount that continues to accommodate you, say between $1,000 and $5,000. Set yourself a one-year plan and forget about that money.

Keep it away, either in a closed piggy bank (the only option to open it is by breaking it) or through some short or medium-term financial product and quick rescue.

7. Divide and conquer

Separate the amounts that you allocate for expenses from those that you plan to save. Avoid hosting them in the same account or checking account.

Transfer a fixed amount every week to a savings account, a debit account, or a financial product, such as a mutual fund, an APV, or Account 2. Depending on the investment period, use that money.

8. Get into Japanese mode, manage your expenses correctly

The Japanese knew it first: the key is in order.

And that is how they developed the Kakebo method, which consists of recording all the fixed and variable expenses, and money income of the person or family, separated into categories (household expenses, personal expenses, leisure, food, etc.).

The system consists of monitoring and reviewing daily and weekly expenses and includes making commitments, such as setting aside a fixed amount only for emergencies or a minimum balance in the checking account.


Regardless of how you do it (using a notebook, applications on your cell phone or your computer, or with an Excel template), the point is that you visualize your money.

Two reasons why the money is not enough

We have more and more expenses, and the prices of some products and services may increase, but if, in your case, the money runs out every fortnight, then it is time to evaluate your habits and expenses.


1. Do you know how to use a credit card? Manage your expenses correctly


Getting a credit card is a solution for many people, but momentary as it can end up being a double-edged sword.

Suppose you already have one or more credit cards or are about to get one. In that case, you must inform your bank or business executive about everything that it entails: the cost of credit, the additional insurance they charge, that perhaps they are not really necessary, and complete clarity about your rights as a debtor.

The most important thing is that you cancel all the past debts you have and avoid paying the minimum amount on your credit cards. It’s essential that you stop spending on nonessentials until you get off all – or most – of your debts.

2. Be careful with spending more than you earn.


It is one of the main dangers for those who choose to apply for credits. Acquiring goods or services that go out of your budget becomes a reason for not having enough money, since many times you end up buying things that it would be impossible for you to pay.

The solution? Simple: Keep your expenses to a minimum.

You must do this exercise for at least the first 15 days for three months, and once you reduce your expenses, review what you spent more on and why.

When you are clear on that aspect, evaluate the possibility of eliminating those expenses permanently or what alternatives exist to get the same but at a lower price.

Remember that it is a temporary exercise! Then you will be grateful that you made this brilliant decision.



Managing money correctly is not easy. Many times we fall into different temptations where unnecessary expenses can play tricks on us.

Other times we do not have enough money to save and have a backup in case of need. However, with good financial planning, you can make better decisions if you want to achieve financial goals.

This is the key to creating strategies that allow you to address the situations in your life. Achieving your goals – especially financial ones – is synonymous with success. We hope this guide is helpful to you.

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