Want to start budgeting and like to better understand how it works? Today you'll read about the four main rules when it comes to personal finance, according to the book You Need A Budget. By setting up your finances smartly, you'll no longer have to deal with financial surprises. And do you make a quick deposit from your savings account to your checking account at the end of the month to make ends meet? That too is no longer necessary.

Good to know: budgeting does not mean that you spend as little money as possible. It means that you think about how you organize your finances and what you spend your money on.

Golden Rule 1: Give every euro a task

Divide your income among these goals:

Fixed, recurring expenses (housing costs, insurance, groceries) investing and saving (emergency savings buffer, index investing, crypto) personal expenses (vacations, clothing, birthdays) Categorize your income. See how to do this easily here.

Golden Rule 2: Be honest about your spending and act accordingly

Map out your expenses and look at them, honestly. Include your subscriptions, all your personal expenses, and what kind of savings buffer you need for your situation. Divide the money between the fixed, recurring costs and expenses, then investing and saving, and work from there to your personal expenses. See how much you really have and divide it up so you can get through the month.

Golden Rule 3: Make flexible adjustments as your situation changes

Your financial situation is dynamic and keeps changing. For example: you start earning more, some expenses increase, others decrease, you move houses or you are expecting a child. Each change comes with an evaluation of your finances. This keeps your money up to date and allows you to adapt to the new situation.

Golden Rule 4: Live off your last month's income – age your money

Many people have bills lying around, waiting for the new salary to come in to pay for it. Your money comes in and actually, you already have a destination for most of it. And you hope to use what's left to pay for your groceries this month. This golden rule is all about aging your money. In other words, leave the money in your account. This way, there is enough money to pay next month's bills.

This way, you'll sleep well at night!

The beauty of these golden rules is that it provides instant mental peace. You know what you have, you know you have it taken care of. You feel in control and you have the overview. You can pay your bills, and you're not living from paycheck to paycheck. No more surprises, and you make it to the end of the month without any problems.

What rules do you follow from these? And do you have any rules to add?