Definition of Personal Finances
Personal Finance is about managing and using your money. How much money do you have, how much do you expect to get and how can you use this capital meaningfully. This concerns your income and expenditure, but also your debts and other forms of assets such as real estate and other assets. We earn, buy, borrow, insure and save every day. Your private economy is about keeping track of all these different categories.
SIBOR Rate helps you keep your personal finances healthy and in order. We help you with financial manuals, saving tips and various articles about investing, saving, making money and more. The world of investing has only grown in popularity in recent years, partly because it has been made more and more accessible. Nowadays, you can easily take quality courses on online investing and find reference books from successful investors. Different platforms offer a clear service and registering is usually free and simple. Investing with small amounts and safe investing with little money has become very accessible thanks to the internet. The entry threshold is therefore very low, making it easy to start and practice online investing
At some point you are an adult, I used to think, and you know all about mortgages. At home you have a cupboard full of neat binders that contains the administration of your life; annual statements, insurance and pension matters. That moment never came to me. Instead, there is a stack of unopened envelopes from the Tax and Customs Administration on the dining room table, and although I spend about my money every month, I am afraid to hear that beep at the supermarket pinpoint… insufficient balance. Because I have no idea what comes in and especially what goes out.
Starting easily, is the advice of teachers at our first meeting, so I open my banking app and scroll through my expenses and income. Make it a habit to do this at least once a day. A healthy financial situation starts with an overview.” Between amounts for the groceries I see debits that I cannot place, from an online babysitting service that I have only used for a while, but for which I am still charged monthly 9.95 euros. Stop that trade.
Viewing is unfortunately not enough. I got assignment to make a sum of all my expenses and income from last month. According to her, Excel is the best way to keep track of your administration (‘A really delicious product. She made a spreadsheet with all formulas already in it. I take an evening out and fill it in in three categories: variable expenses, such as gifts, groceries and snacks at the station, ‘fixed expenses’, such as health insurance, childcare and telephone and ‘income’, where my salary, but also the childcare allowance. My friend – who earns much more than I do – takes care of the rent and car insurance, among other things.
In order to prevent a many-headed monster from unopened envelopes and the associated reminders and fines, I have to open my mail every day from experts. ‘The content is often not so bad. If you leave it there, you are sometimes justifiably worried. I have to put important papers in a permanent place, for example a drawer, where I cannot see them. Then I choose a fixed time of the week to do my administration.
I buy two light pink folders with slide-in sleeves and tabs, on which I write ‘insurance’, ’employer’, ‘house’, ‘children’ and ‘guarantee certificates’. Don’t make too many categories. That makes it unclear, warns. Nowadays I also receive many papers digitally. What do you do with an administration that is partly physical and partly digital? Make a folder in your mailbox administration and drag in the mails that concern financial matters. You go through those at your regular administration time. You can also choose to do everything digitally. Then you have to scan mail immediately and put it in a folder. ‘
Despite my pink folders and the overview in my finances, it almost threatens to go wrong on a Wednesday afternoon. My salary has been paid and I experience a misplaced feeling of ‘I have a lot of money’, which means I almost buy expensive pants. While the depreciation of the childcare is coming. ‘You can know exactly what you have left over per month, but still be short on a certain day. Many people have to bridge three weeks after the mortgage has been written off, on the first of the month, until they get a salary again. To avoid making a big expense at the wrong time, prepare a liquidity statement. It states exactly on which day a direct debit is taken from your account and on which day your salary is deposited. This way you avoid surprises. “