The organization of personal finances represents a fundamental point in the lives of all of us. Financial difficulties directly affect the emotional aspect and productivity at work, in addition to causing instability in the family environment. Many believe that just having money is enough for all problems to be solved.
Organizing finances represents the first step towards the realization of dreams and projects. From initiatives implemented on a daily basis, anyone can achieve financial balance and become, in a second stage, an investor. Here are some tips:
1 – Budget Day
Set aside a day in the month to organize your financial life. Set up a spreadsheet with fixed expenses, debts, payments, eventual expenses. Also enter all your income, such as salary, rent, occasional earnings, etc. Build your monthly budget, adjusting spending to income. The ideal is that there is always a surplus of 10% to 20%.
2 – Set priorities
If the budget is in disequilibrium – expenditures greater than revenues – the way is to immediately reduce expenditures. This adjustment period requires discipline. Remember that it is necessary, but transitory. Going to the restaurant, outings, trips or superfluous purchases can wait until the financial balance is restored.
3 – Learn to use money
Most people are concerned with learning how to make money, but not how to use it. Everyone knows stories of entrepreneurs who accumulated fortunes but ended up broke. Read, study, search for finance information . There are several books, magazines, newspapers and websites that translate “savings” into everyday language.
4 – Set financial goals
Determine a value, a deadline and a financial objective to be achieved. Example: buy a car worth R $ 30,000, within two years. Analyze your budget and see how to reorganize it in order to get the car on time.
5 – Always save
There is no organization of personal finances without savings. Take the task of saving 10% to 20% of your monthly income as a commitment.
6 – Learn to invest
From a certain level of organization of finances , the person has resources for investment. The accounts are up to date, there are no outstanding debts and the goal of spending less than you earn has become law. The time has come to make money work for you. Search for investments according to your profile. To do this, ask for the help of your bank manager, count on the help of companies specialized in providing this type of advice or be trained to take on the task of taking care of your own investments.
7 – Limit indebtedness to the maximum
Whenever possible, opt for cash purchases. Control consumption cravings, pool resources and purchase the product or service with a one-time payment. This increases the bargaining power at the time of purchase, allowing discounts and other advantages (gifts, extra points in loyalty programs, etc.). Use financing only for specific situations, such as buying a property.
8 – Escape from easy (and expensive) credit
Credit lines such as overdraft and credit cards pose serious threats to any financial planning . Interest rates are higher and the person is seduced by the ease of contracting the debt. Remember that easy money costs a lot more.
9 – Use portability
Anyone with a financing or loan contract can take advantage of portability. With it, the debtor has his debt “purchased” by another financial institution, which offers him more favorable payment terms. The person exchanges the expensive debt for a cheaper one.
10 – Discipline, first of all
None of the above tips will work if the person has no discipline to organize their finances. Following the planned planning is fundamental.