Personal finance in everyday life: how to organize?
Spending a large part of life in debt and counting the coins to be able to pay the bills at the end of the month is the reality of most Brazilians. However, knowing how to organize finances correctly and efficiently can bring you much more than peaceful nights of sleep. It can provide the fulfillment of all your dreams and a much more comfortable and carefree future.
To help you with the task of organizing finances, below we have listed five tips that can be very useful in this process. Check-out!
Have clear goals
Why do you want to organize finances? Whether to pay off that super debt, change a car or even achieve the dream of owning a home, you have to be very clear about where you want to go. Being focused on a final destination will give you more motivation and discipline to get there. And as soon as you reach your goal, try to find another one. After all, we are always looking to improve our lives, aren’t we?
Now that you have one or more goals set, it’s time to plan how you’re going to get there. There is no point in wanting to get out of debt puddle, for example, if you don’t have an efficient plan in place for that.
How much should you have available, per month, to get where you want? Determine what you will do to achieve this. Whether cutting budget spending or getting extra income, the important thing is to aim at the target and shoot!
Most people, when setting up their budget spreadsheet, do all the calculations based on monthly earnings and expenses, right? However, when they visualize the size of the gap or that they will not be able to balance their finances in just a month, they soon despair and give up on doing the control, so as not to stress.
To prevent this from happening, in addition to the monthly check, extrapolate it to the next 12 or 24 months. Then, you will be able to see that reducing the number of cable TV channels will produce great savings in the long run, for example.
Ok, we know that this is definitely not a custom for Brazilians. But know that, all credit purchases have built-in interest, and that buying in cash, besides being cheaper, allows negotiations.
So get more and more used to shopping by paying on the spot. Perhaps in the first months of planning this will not be entirely possible, given that your earnings will be over-committed. However, as you get rid of debts, acquire the custom of cash purchases for everything.
Calculate spending on working time
This tip is great for those who have the habit of buying on impulse. Divide your net monthly earnings by the number of hours you will work that month. That way, you’ll know how much you earn per hour worked.
When painting that desire to buy the latest smartphone model on the market, do the math to know how many hours you will have to work to be able to pay for the game. You may be surprised. And decide to spend your precious money on something more essential.
Did you like this content? Do you know any other tips for organizing finances that were not listed here? Tell us in the comments and enrich the discussion on this subject!