Techniques for managing your finances

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Taking good care of one ‘s finances is fundamental throughout life, and must be learned from childhood.

The lack of financial organization can severely damage the personal budget, preventing the person from realizing their plans and dreams.

The impacts are experienced on a daily basis, but even more felt when the individual finds himself unable to achieve his goals, such as buying a car, taking a trip, investing in his own property, among others.

This generates feelings of frustration and creates a vicious cycle that repeats itself throughout life, and regret begins to appear.

The good news is that there is a simple solution to this, even for those who earn only one salary.

Financial organization can change a person’s reality and that’s what we’re going to talk about here.

You will understand the importance of managing your finances well, learn some techniques and know its benefits.

Importance of managing your finances well

Knowing how to handle money is very important to make your salary last the whole month, even during times of crisis.

Far beyond paying the bills, buying the necessary items for everyday life, saving and investing, it is also important to understand how to better use your own money, and the name of this is financial management.

A person who wants to open an Eireli company needs financial organization just like someone who wants to buy a car or simply live a life without worrying about money.

Good management requires understanding the importance of personal finances, as the salary will earn enough to pay fixed expenses, have access to leisure and get some plans off the ground.

People need to have control and write down everything that goes in and out of the budget, including fixed and variable accounts and unexpected expenses.

Those who live with other people need to make them aware of these expenses so that everyone walks towards the realization of a life project.

Counting on a financial consultancy can help if the situation is very messy, but putting everything on a spreadsheet from rent to the coffee you have at the bakery in the morning can make all the difference in your pocket.

It’s a way to visualize expenses that you can cut, expenses that can be adjusted and replaced, among other practices that will improve your reality.

Technology is an ally in this process, as there are numerous applications that help with financial planning, organizing the budget in various ways, managing bank accounts and organizing expenses by categories.

Speaking of which, in the next topic, we’ll give you some tips to better manage your finances.

Tips for better managing your finances

Some strategies, although simple, help you efficiently manage your own money, and among the most effective are:

Spend less than salary

This rule is valid for anyone anywhere in the world. So much so that there is no shortage of stories of people who once had a lot of money, but who simply went broke by spending more than they earned.

This is not a trick, but a reality, as you must live a standard of living corresponding to your income that is reality.

For example, a person who earns 2 thousand a month cannot have expenses higher than 1400. The amount left over must be saved or used in investments.

If the individual has a goal, such as performing hair treatments , spending less than you earn is even more important.

If you have a little more difficulty controlling yourself, when paying the bills, any leftover money should be placed in a savings account and kept out of your reach.

watch out for traps

The consumer is faced with so many opportunities that it is practically impossible to resist them. How many product advertisements have you seen today and how many of them would you like to buy?

In addition to impulse spending, taking out loans, using overdraft or getting into a loan can harm your home’s financial health.

Try to circumvent these situations by thinking about your financial planning and the problems they can bring.

A person who is following a diet and needs to buy a fit lunch box for the week , if he starts acting on impulse, he can even harm the diet.

Try not to pay attention to all the advertisements and advertisements you see, and when you are going to buy something, it is interesting to negotiate to try a discount.

Record all expenses

An application or spreadsheet can become real tools to closely monitor your finances and better control your money.

Record all your fixed and variable expenses, such as:

  • Rent;
  • Water;
  • Light;
  • Internet;
  • Credit card;
  • Food;
  • Transport.

By making this record, it is possible to analyze the movements by category and see which are the expenses that are extrapolating your budget.

Make a financial reservation

Some people believe that paying bills on time and having enough money to eat is enough, but this is not true.

Making a reservation is essential to cover annual expenses, such as IPTU, IPVA, school supplies, among other common expenses at certain times of the year.

Add them all up and divide by 12 to find the amount you need to set aside each month, so you have money to pay for other important expenses, such as treatments for impotence .

Following these tips can change the reality of your finances and bring many benefits to your pocket.

Benefits of taking good care of finances

Controlling your finances well brings many benefits that are felt in the short, medium and long term, and among the most outstanding are:

Reduces stress and anxiety

The lack of money can make anyone have crises of stress and anxiety, and what determines whether you will go through it or not is the way you manage your financial resources.

Seeing that the situation is under control, no one gets anxious or negative feelings, and there is even research related to this subject.

One of them was carried out by the SPC (National Credit Protection Service) and showed that 69% of defaulting people feel more anxious when incurring debt.

According to the same survey, indebtedness is responsible for stress in 64% of consumers, who feel guilty, with low self-esteem and anguished for not being able to pay their bills.

help make dreams come true

Financial planning helps to save and save money, 2 attitudes that make capital grow over time. And those who have money saved can fulfill their dreams and achieve their goals.

For example, a person who wants to take a tour of Europe needs to have a good amount of money, and for someone who is in debt, this dream may seem impossible, but it is not.

Another example is someone who wants to renovate the house and needs to hire general renovation services .

All this requires financial organization, and by managing your finances well, it is possible to achieve any goal.

Improve your relationship with money

Remembering that we need to buy things on a daily basis, but consumption should not be an escape valve to fill moments of anxiety or even joy.

For some people, anything is an excuse to spend money, but it will hurt their finances over time.

Having control over impulsive attitudes makes money an ally and not an enemy, which is why some companies prefer to invest in outsourced administrative services that know how to take better care of their finances.

Final considerations

So financial planning is essential, even if you don’t have any plans or goals set at the moment.

Just being able to breathe a sigh of relief at the end of the month is a big deal, and the more you control your finances, the less you have to work.

By following our tips, you will take better care of your pocket and avoid the stress and headache that lack of money can bring.

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