Do you ever wonder where all your money goes? Write down all your income and expenses, say, for a couple of months. This way you will also see if you spend too much on something and if you have any surplus funds.

How to plan your finances

  • Add up all your family's income: wages, child allowances, pensions, housing benefits, student financial aid...
  • Add up your fixed expenses: maintenance charge on your home, rent, electricity, insurance, newspaper subscriptions... Divide the total sum between 12 months to find out the fixed expenses for one month.
  • Could you decrease your fixed expenses? For example, find out if you can reduce your electricity bill by changing electricity companies, or if you could read the expensive hobby magazines you subscribe to at the nearest library. Calculate how much you would save if you blocked calls to chargeable numbers.
  • Write down all variable expenses, such as food, clothes, hobbies, hygiene. These are the kinds of expenses you can affect the most.

When you have a clear picture of your income and expenses, it is easier to balance seasonal expenses. You will also know which season is the best in terms of saving and which expenses you can compromise on in order to save for a specific target, such as a trip abroad, loan repayment or a large purchase.

Do you have surplus cash?

If you do, do not keep it in your normal current account. Instead, find other saving or investment options. If your surplus funds are available in your everyday payment account, you will spend them before you know it.

Read also the check list on savings, loans and insurance.

Neuvoja lainoista ja luotoista

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A consumer credit gives flexibility to your finances

Choosing Nordea for all your banking will be worth your while.

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Draw up a financial plan

You can balance your finances by calculating your regular income and expenses.