Financial notebook: 7 reasons to have one

Managing your financial life isn't always easy. After all, you have to take into account your expenses, earnings, the creation of an emergency reserve, plans for the future, and so on.

If you want to be more in control of your money, you need a financial notebook.

But if there is no organization, things become even more difficult.

That's why we're going to show you the advantages of setting up a financial notebook and thus increasing control over your personal budget. 

Check out the benefits now:

1. Overview of the financial reality

It sounds obvious, but many people don't know exactly what their main monthly expenses are.

This lack of information gets in the way of making decisions. After all, in order to set aside part of your money for investment and part for leisure, you first need to know how much you spend every month on essential expenses.

By controlling your expenses, it becomes clear how much you can spend and how much you should save.

Predictability of expenses helps you to be more calm and organized, as this way you can understand exactly what should be a priority in your financial planning.

2. Helps cut unnecessary expenses

If you don't know exactly how much you're spending, chances are you're buying more than you really need.

In order to avoid unnecessary spending, it is essential that you have a more general view of your true financial reality.

Small expenses, when accumulated, can turn into significant sums that will be missed when the unexpected happens.

And this is precisely where the financial notebook becomes even more useful: by writing down all your expenses, you can better manage your money.

The spending limit is also important for those who want to save money.

If you've analyzed all your recent spending and realized that you've bought things you don't really need, it's a good idea to set a spending limit in your budget.

That way, you can keep track of your money and, of course, find out where you really need to save.

3. A more peaceful and balanced financial life

One of the main financial mistakes people make is uncontrolled spending.

If this is your case, it's time to invest more in financial organization.

When you buy things you don't need, you run the risk of running out of money, which will certainly cause you worry and anxiety.

To prevent this from happening, it is essential to control spending.

The financial notebook not only helps you to have a more in-depth view of your budget, but also gives you more motivation to organize your financial life.

In this way, you avoid worrying about overspending on things you don't really need.

Of course, there's no problem in setting aside part of your salary for leisure time - on the contrary! These moments help you to have a better quality of life and well-being.

However, if you don't control your spending, financial problems start to appear. As a result, there are worries about paying for these expenses.

4. Allows for the creation of an emergency reserve

The emergency reserve, as the name implies, is an amount that should be kept for times of need.

Ideally, your reserve should be able to cover at least six months of your monthly expenses.

To create an emergency reserve, the first step is to understand your income and expenditure. That way, you'll know exactly how much you can save each month.

There is no exact percentage of your salary that should be saved to create this emergency fund.

It all depends on how much you want to save each month. If the amount you can currently save is very low, there's no problem. The most important thing is to get started.

Any money saved will make a difference when the unexpected arises.

5. Helps plan for the future

The main pillar for those who want to achieve their goals is planning for the future.

Financial control with notebook helps you focus more on what you really want. This makes it easier to avoid momentary expenses.

By organizing your financial life, you can prepare yourself to start saving and investing your money and thus achieve future goals.

6. Helps pay off debts

Paying off debts is almost never a simple task. However, it can be done.

The first step is to know exactly how much you owe.

This step is important because without it, you won't be able to get a clear idea of how much you owe, as the financial debts pile up.

On the basis of this information, you can now start the plan to pay off the debts.

Put all this information in your financial notebook. 

Ideally, you should give preference to the most expensive accounts, as they have the highest interest rates.

Once you understand exactly what you owe and how much you can afford, it's time to try and negotiate with your creditors!

The section on unnecessary expenses, which should also be in your financial notebook, can help with this.

After all, with this information, you'll be able to analyze which expenses can be cut, even if only temporarily, until you're able to pay off all your financial debts.

7. More realistic standard of living

In order to have a standard of living that is consistent with your financial reality, it is important to plan your budget.

And the financial notebook helps you understand this.

These are some of the signs that your spending is outstripping your income:

- Difficulty saving and investing

- Taking out loans for consumer items

- Debts

- Excessive spending just to show others what you have

Conclusion

Now you know what a financial notebook is and how it can help you control your financial life.

In addition to the financial notebook, you can also use specific applications for this purpose or the traditional Excel spreadsheet.

That way, you'll be better able to manage your own spending.