Being organized and having a financial plan is essential for achieving success. Whether it's an emergency plan or a future plan, keeping your account up-to-date and saving money is a challenge for everyone. It's not about using the best tools in the world, nor about learning your personal budget from the top experts.
It's clear that organizing your finances is first and foremost a personal choice. It requires a change in attitude, new habits, and patience, lots of patience.
In this article, I will share some important tips for learning how to manage your budget in a simple and effective way.
How to organize your finances: check out these golden tips
Before I give you 6 financial tips to finally get your personal accounting working, we need to talk about responsibilities.
Organizing your finances is one of the steps towards financial success and a more peaceful life.
But this should be a daily commitment. Therefore, be honest with yourself before attempting to use the tools and suggestions in this article.
It's up to me to lead an organized life. Therefore, to do that, I must organize my finances, exercise financial control, and learn to save money.
When my salary is a bit higher and certain things in my personal life are sorted out, I'll focus on financial control and housing budgeting.
If you choose answer 2, I suggest you read this text at least twice; there is much other content about financial education that is also available for free on this website.
On the other hand, if you choose the first answer, then you have already decided what needs to be done.
See some tips:
6 tips on how to organize your finances:
Well, the truth is that providing tips to help people build better finances is always a challenge. After all, its interpretation is subjective. I suggest you try to absorb the concepts described in each technique, and then consider how to put them into practice.
Remember: first and foremost, your financial plan needs to work for you.
If you have trouble controlling your expenses, start small. The important thing is to always begin and progress. Check out these tips:
- Be realistic about your finances
This problem seems obvious, but when always considering the net amount available in the account, many people remember the total salary.
In fact, there are many benefits, but these benefits will be deducted from your total salary. There are other issues to consider, such as taxes and fixed monthly expenses.
How much does this cost? Do you know how to spend your hard-earned money every month?
I think you have an idea, but I don't know the details. Am I right? Start recording your monthly expenses and categorize them in an organized and easy-to-understand way.
Organize all your personal expenses this way, and you'll be able to understand your income and expenses.
- Set boundaries and eliminate your debt
Debt creates very dangerous dependencies. It makes you a slave to money. Many people think they can buy more products with credit. However, with increased installments and financing, it's easy to lose control.
To avoid this, learn to use spending limits for each expense in your budget. For example, why spend more than 10% of your monthly net income budget?
Or is it 30% of housing? Adjust and comply with the limits.
- Get out of debt: prioritize!
In Brazil, a life full of debt is very expensive. Debt interest rates are high, and accumulating bills will create a huge snowball effect.
Therefore, if you have outstanding bills, the first step to organizing your finances is to clear them as quickly as possible. List all your debts.
Find out what you owe, the interest involved, and make a payment plan. Be sure to renegotiate as much as possible.
If you have many bills to pay, start with the ones that have the highest interest rates, the highest fees, and the oldest bills.
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- Use your credit card less
The convenience of a credit card contrasts sharply with the debt it creates for those who cannot properly manage their funds.
The card isn't to blame. It doesn't do anything. In fact, if used correctly, it can be a useful tool. Now, if you have any problems with credit card debt, choose the option of paying with a debit card and paying in full.
If you can't stop using it, at least avoid splitting your purchase into too many installments.
Many installments often cause confusion because it's nearly impossible to remember all the fees that were charged on the bill. Not to mention that many installments include benefits.
Remember: even if you can control and/or access your bills online, overpayments can complicate your cash flow. Finally, try to set an appropriate limit for your credit card usage and pay the bill in full and on time.
Using this method, your credit card can have positive effects, such as redeeming points for other products, in addition to improving your credit score with Serasa.
- Create a well-structured plan and control system for your finances.
The first rule when organizing personal finances is simple: spend less than you earn and save some of the difference. It certainly sounds simple, but in practice it's not easy at all.
The ability of people who can do this is called financial control. That's right: control. Anyone who can live a controlled lifestyle will live that way because they are very aware of how much money they earn and how they spend it.
Therefore, to create a sufficient family budget, it is necessary to correctly classify expenses and control monthly cash flow.
- Save money
Many people think that saving money is stupid because “you only live once.” However, it’s naive to think that way. When it becomes a present, the investment is also ready to be consumed in the future.
After all, we will all grow old and need resources. Besides, it's precisely because "you only live once" that you want to fulfill your dream, right?
And unless you were born with a silver spoon in your mouth, you need to save money if you want to buy your own house, own the car you want, or make that trip unforgettable.
That's why saving money shouldn't be a sacrifice, something complicated and difficult. For you and your family, staying alive should be a wise and precious choice.
After organizing your account, start depositing 5% of your income. Then, gradually increase the amount deposited; don't stress, don't rush. But please, start.