Personal Finance: Stay Out Of Debt

If you are not in debt, you are already on a good path in terms of controlling personal finances. However, if you have, this is the first problem you must solve to organize yourself financially.

Overdue accounts carry other costs, as fees and interest are charged and take away the chance for you to save and control yourself. In these situations, all the money that comes in is spent on bill payments, and the main objective is to pay off the debt. 

As a way to solve this problem, you can try to renegotiate or install the debt, and get rid of this “stone” in your financial organization project.

Separate an amount for annual expenses

A mistake made by most people is to focus only on monthly expenses and fail to consider annual expenses, for example, IPVA, IPTU and insurance . These expenses end up becoming a problem when they are not scheduled, since if you are not planning to pay them, you may be in a tight spot when they arrive.

For this reason, it is appropriate to reserve an amount for these expenses throughout the year. One idea is for you to set aside a specific amount each month for them.

Have an emergency reserve

Unexpected situations can happen at any time, so you need to be prepared. The purpose of creating an emergency fund is to prevent unforeseen events , such as contract termination , health problems, car repairs, among others. It is necessary to have financial tranquility at times like these and the emergency reserve ensures this.

Separate personal accounts from professional accounts

Financial control must be done by anyone. But, when you are also a legal person , extra attention is needed. Personal accounts can never mix with professional accounts and that goes beyond the question of organizing.

If you mix these accounts and use your personal income to pay off debts of the legal entity and vice versa, in addition to having serious consequences, for example, the impossibility of financial planning of the business, your accounting will also be compromised. This is because every CNPJ must do the bank reconciliation, which is the verification of the bank statement of the PJ account with the declaration of the company’s entries and exits. When mixing personal and professional finances, the account does not close.

In order not to have this problem, the ideal is to open two different bank accounts: one for individuals and one for legal entities. With this, you prevent the bills and incomes of the two from mixing.

Extra tip : to facilitate bank reconciliation, you can use the Contabilizei platform that allows you to automatically match account movements with the statement. Find out more here!

Use technology to your advantage

There are several applications available on the market that can assist in this task of organizing personal finances in your daily life. This way, it is easier to record and control all expenses that are part of your routine. A good example is GuiaBolso .

This will allow you to identify which amounts are being spent unnecessarily and thus you can cut them. The important thing is to learn to control finances , save and take better care of your income.

In order to take care of your CNPJ’s finances , the tip is to migrate your accounting to Contabilizei and automate the invoice issuance and bank reconciliation.

Did you realize the importance of organizing personal finances and separating them from professional accounts? So start putting the tips presented into practice right now.

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