Personal finances are one of the most complicated areas to keep healthy. We are constantly surrounded by offers, promotions and an erroneous need to live spending resources and being in debt. We have seen cases of people with good salaries that are not enough to live on and who are always in debt. The same case of people who are always changing jobs looking for better income, change jobs and after a few months feel the need to get a better salary again. An important relationship that we can establish to understand the motivations of these people was pointed out by Frederick Herzberg , a psychologist specialized in the administrative management of companies, who explains that human beings are moved by: intrinsic motivation and hygienic motivation. The theory is based on job satisfaction. Intrinsic values are those that individuals achieve within organizations. These are long-term and produce job loyalty. Hygiene factors, on the other hand, generate dissatisfaction and have very little effect on long-term satisfaction. For this reason, it is important that both factors coexist in order to create a balance. Keep reading to learn 4 strategies to organize your personal finances . After knowing the cause of our financial dissatisfaction and its relationship with the workplace, it is necessary to know why we can always be financially dissatisfied, and to be able to work on the way you relate to money based on these motivations. If you want to organize your personal finances , you must improve your relationship with money. Strategies to organize your personal finances 1. Make a budget and stick to it The first thing you should do to organize your personal finances is to have economic stability, ration your expenses and diversify your income. You can make a budget even if your finances are in good shape. In your budget, you need to record your income and expenses for a specific period of time. This can help you determine if you need more income, identify those expenses that are too high and unnecessary, see where you can reduce expenses, evaluate the status of your debts, and, in the best case scenario, plan to create a savings cushion. 2. Make a reserve for unforeseen events Having a reserve of money for about five or six months of work, to be able to face any unforeseen event, is necessary in case you need a medical emergency, a car part or if your computer is damaged, etc. This reserve will surely give you more peace of mind when organizing your personal finances . Saving that amount may seem overwhelming, but it can be achieved by sticking to your budget. You can even choose, depending on the country where you are, to purchase an insurance policy that can help you cover medical expenses and events. Organizing your personal finances should not be a scary task. 20% EXTRA DISCOUNT Get started today and get fully certified with our Personal Finance Planning course 100% online at your own pace Practical exercises Lifetime Access Certified endorsed Apply the coupon [DARE] and get an extra 20% discount for only 100 students. Click the button and join! Learn more Organize your personal finances 3. Reduce your credit card debts Without a doubt, debts generated by credit cards are those with the highest interest rates on the market, they are one of the most impressive expenses and in savings accounts they pay less than 1% for your savings, but they charge between 12 to 19% for that money that you borrow through credit cards. To organize your personal finances, you should include in your budget the money you use for capital amortizations on your credit cards, so that you can gradually reduce that debt and it does not affect your budget as much. Remember that while it is true that they can help you out of trouble, suppliers offer many options and the line of credit will make you believe that you have enough liquidity, but the truth is that you are spending perhaps on items that you do not even need, in this case you must keep in mind your budget and you must return to the first point: ration your expenses. Organize your personal finances 4. Invest your money Once you have the other 3 points above under control, you have a budget that includes all your expenses, your expenses are in line with what you earn, you have a reserve for unforeseen events, you reduce your debts and you have a savings plan, you should think about what you are going to invest your money in. You can even make investments that generate more money for you, not just sitting in your savings account, you can make investments in the stock market, where you can generate competitive interest and build a financial future in line with your expectations. Investing your money is an excellent option to organize your personal finances. FREE DOWNLOAD We know that managing personal finances is no easy task, which is why we offer you this completely FREE resource so you can learn how to plan your personal finances. Conclusions While it is true that discussing finances can be difficult, we recommend that you discuss this topic extensively with the person you share it with, be it your partner, family or friends, because good money management and good organization of your personal finances is very healthy. However, poor management of personal finances can lead to discomfort and unease. Remember that clear accounts preserve friendships, as the saying goes, and if you have good financial health you will be able to focus on other, more important things. We hope that these strategies for organizing your personal finances will help you establish a better relationship with money. They may seem very basic, but most people do not follow these strategies and are affected financially. Start with the most basic things, and you will see how in a short time you can even invest your money, which will be ideal after arranging the rest of the important elements to take into account. Courses that may interest you Do you want to acquire more skills to manage your personal finances? We remind you to also check out our courses Entrepreneurship: Create your Business Plan, Create your First Store in Shopify and Planning and Budgeting.