How to take control of your personal money: tips from a financial expert and a test from LIGA.net

Without understanding real income, expenses, and priorities, even high earnings won't save you from financial chaos. Yelena Shepel, an expert in corporate and personal finance, explained how to take control of personal finances, translate planning from intentions into concrete actions, and align a financial plan as a couple or family.And to immediately understand whether you are in control of your finances, the editorial team LIGA.net I have prepared a test checklist for you to complete and assess your level of financial discipline.Step 1. Analyze income and expensesThe first step of financial planning is to record and analyze all monthly income and expenses..The accounting process should last at least two months. Daily recording of expenses may seem tedious, but without it, it is impossible to see the real financial picture. When a person first encounters specific figures, they often come as a surprise. The expert gives her own example, when after analyzing the cost of coffee, she realized that it was better to buy a coffee machine, and this purchase paid off in 4 months."At this stage, the main thing is to see concrete figures that we can work with going forward," says the financier.Step 2. Create a monthly budgetAfter analyzing income and expenses, the next step is to create a monthly budget.. There is no universal formula, but any budget should consist of four key sections, says Shepel.The first is income.This includes all income, regardless of whether it is stable or variable, from one source or several. It is important to consider even cashback and bonuses.The second section is monthly expenses, which are divided into mandatory (housing, food, transportation), desirable (entertainment, hobbies, shopping) and impulsive (for which you should allocate a separate amount in the budget to buy what you want on a momentary whim).The third is debts. If there are loans or deferrals, the budget should include amounts to be repaid.The fourth is savings, in particular a reserve fund or financial safety cushion, which should be quickly accessible.If the balance does not converge, this is a signal to work on increasing income or optimizing expenses.Step 3. Formulate key financial goalsFinancial goals for the year are the foundation of any plan. Elena Shepel advises making a list and then analyzing each goal with a simple question: how will you feel if this goal is not achieved?"If you have a response: "I'll either feel disappointed or I'll try again." This means that you are not ready to fully commit to working on the realization of this goal. If the answer to the question is: "I will definitely succeed. There is no version of reality in which I don't make this happen!" This means that the desire is so strong and charged that you will be ready to work on this goal for a year on internal motivation.Step 4. Turn a dream into concrete figuresAs Yelena Shepel emphasizes, until you convert a financial goal into a specific amount to be saved and a date by which it needs to be achieved, it will remain just a wish. A dream becomes a goal when you are ready to make an effort to achieve it. To do this, you need to gather information about the cost of what you have in mind – through the internet, by talking to people with similar experiences, or by using digital tools.Step 5. Regularly adjust the financial planA financial plan is not a static document. It should be reviewed at least once every three months to assess progress in saving or debt repayment and to check whether expenses are in line with the plan. Circumstances can change: new sources of income may appear, prices may rise, or new expense items may be added.Regular review allows you to adapt the figures to reality and maintain progress toward your financial goals.How to coordinate a financial plan as a couple or familyFinancial planning as a couple requires special attention. Yelena Shepel notes that it's best to start with individual work: each partner should separately formulate their own vision of income, expenses, debts, and savings. Only after that is it advisable to plan a joint conversation."Such a dialogue should not turn into an argument or tough negotiations. It's about a friendly conversation to synchronize positions and expectations. To do this, the expert advises setting simple rules: for example, limiting each partner's speaking time to 15-20 minutes, during which the other only listens without interrupting. After that, the parties switch roles, and only then move on to discussing what they have heard," says the financial expert.The main thing is to maintain a positive attitude and remember that in financial matters, partners are allies, not opponents.Test checklist: assess your financial levelInstructions: Choose the answer that best suits you, and at the end, count your points.1. How often do you record your income and expenses?A) Daily or weekly – 3 pointsB) Sometimes, when I remember – 2 pointsC) Never – 0 points2. Do you create a monthly budget?A) Yes, in a clear table with all income, expenses, debts, and savings – 3 pointsB) Partially, only approximately – 2 pointsC) Never – 0 points3. Do you set financial goals for the year?A) Yes, I have specific goals with amounts and deadlines – 3 pointsB) I have general goals, without specific figures – 2 pointsC) No, I don't set goals – 0 points4. Do you have a specific savings plan?A) Yes, I know how much and when to save – 3 pointsB) Partially, approximately – 2 pointsC) No, I don't think so – 0 points5. How often do you review and adjust your financial plan?A) At least once every 3 months – 3 pointsB) Once a year or less – 1 pointC) Never – 0 points6. Do you have a joint financial plan as a couple/family?A) Yes, we discuss income, expenses, and savings together – 3 pointsB) Sometimes we discuss – 2 pointsC) No, every man for himself – 0 pointsSummary:15–18 points: You have a high level of financial literacy – you plan and control your money.10–14 points: Average level – you are taking the right steps, but there is still work to be done.0–9 points: Beginner level – it's time to systematize your income, expenses, and goals to move towards financial stability.Read alsoHow to talk about money with your partner: 10 tips for strengthening your relationship