When the money doesn't go far enough

There's still a week to go before payday, but the bank balance is already 0. Many of us are familiar with this situation. Luckily, you can take control of your finances.

There are several applications for monitoring your financial situation. For example,you can enter your daily expenses and income into Takuu-Säätiö's Penno and see your financial situation at a glance.

List your necessary expenses

When the money at your disposal is limited, it is important to understand what necessary expenses are. A person living alone should have at least €536/month after housing costs and debts (consumer-price index) with which to pay for food, hobbies, leisure time, phone and internet bills, hygiene products, and clothes. The sum translates into around €125 per week and around €18 per day. Approximately half of the cash available will be spent on food, and the other half should be sufficient for everything else.

Keeping a car is expensive

Car-related costs consist of capital expenditure and operating costs. The more expensive and newer car you buy and the more you drive it and the longer you keep it, the more the value of the car decreases (= impairment).

Maintenance, use, service and impairment of a midrange car amounts to, on average, €635/month, assuming that the annual kilometers driven amount to 20 000 per year (source: The Automobile and Touring Club of Finland (ATCF)). The actual costs may be as high as €8 000 per year. If you have to take a loan in order to purchase the car, there will be an additional monthly expense, possibly for several years to come. Consider carefully whether you can keep and regularly service it.

Identify your addiction

We are living in a consumer society where constant acquisition of products and services is part of everyday life. It is easy to buy products online, and you can pay the bill later. But when there's no longer enough money to pay all the bills, you’re in trouble.

Other common addictions include, among others, substance dependence, drug addiction, Internet addiction disorder (IAD), and gaming addiction. It is often very difficult for people to admit and accept that they are addicted. One characteristic of addiction is that it starts to dictate the addicted person's life: unreasonable amounts of time money are spent on financing the addiction; friends and family suffer; working and hobbies don’t succeed as before. The addicted person’s life shrinks and centers on the addiction.

Help with addictions

Help with gaming problems