To conquer your dreams and not go through difficulties during the month, you need to have enough responsibility with personal finances. To do this, spend less than you earn, avoid term payments and the other tips you’ll see in this post are very important.
Want to stay on top of the subject and know everything you need to have a much healthier and calmer financial life? So keep reading!
What is financial planning?
A financial plan is to put your future income and expenses at the tip of the pencil. For this, the ideal is that you start by setting a time for planning. It could be the next month, for example.
Then, it is enough that you consider your income and calculate your expenses, such as water, electricity, rent, food, etc. That way, you’ll know the most you can spend so you do not run out of money.
Why have a personal planning?
We all have dreams and goals, which can be short or long term. Let’s assume your goal is to buy a home in a couple of years. You will only achieve this goal if you plan and organize your budget!
Having a personal plan with well defined goals is important so that you do not get discouraged when tightening your belt on spending and do not even get into the temptation to waste money on besteirinhas that, at the end of the month, are very expensive.
How to organize the budget?
In order for your financial planning to work properly and your personal goals are met, you need to organize your budget correctly. With that in mind, we’ve separated some tips to help you with this task. Check it out!
1. Spend less than you earn
Spending less than you earn is the first step in balancing accounts. Only in this way is it possible to avoid debts and pay those that are outstanding. The simplest way to achieve this is to do what we mentioned at the beginning of the post: financial planning.
Calculate your monthly expenses and see what you really need. Also, cut those expenses that do not help much in balancing your accounts. With these attitudes, you will be on the right track to spend less than you earn.
2. Escape payments on time
Time payments are great personal finance villains. Whenever possible, seek to pay your purchases in cash, even if you have to wait a little longer. Gathering a little bit of money a month to buy a new TV, for example, comes out much cheaper than financing it in various installments with interest.
3. Save a bit for emergencies
An essential measure to have a healthy financial life without scares is to have a reserve for emergencies. If you separate a portion of your money each month, you will soon have enough to keep up with unemployment, illness, or economic crises. Ideally, this reserve should be six times the value of your monthly income.
4. Have personal goals
Having personal goals is key to structuring your financial life. Whether it’s buying a car, taking a trip, or owning a home, personal goals are extremely motivating to keep finances on track.
5. Define priorities
As we speak of personal goals in the previous topic, it is important that you define which of them are priorities for your life.
Is your car old and is it giving trouble on the street? So buying a new car is a priority. Is your room too big for your TV? Schedule yourself to buy a bigger television. Can not afford rent anymore? Maybe it’s time to think about home ownership!
With well-defined priorities, you will always spend your money objectively and intelligently.
There are no secrets to keeping your personal finances balanced! By following a few simple tips, you will not go red and gain more peace and security.