Personal finance: how to organize?On November 19, 2019 by Marlene Niemeyer
Spending a large part of your life on debt and counting coins to be able to pay the bills at the end of the month is the reality of most Brazilians. However, knowing how to arrange finances correctly and efficiently can bring you much more than quiet nights sleep. It can provide the realization of all your dreams and a much more comfortable and carefree future.
To help you with the task of organizing finances, below are five tips that can be very helpful in this process. Check-out!
1. Have clear goals
Why do you want to organize finances? Whether you want to pay off that super debt, change your car or even achieve the dream of your own home, you have to be very clear 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 the goal set, arrange another. After all, we always want to improve our lives, aren’t we?
2. Map plans
Now that you have one or more goals set, it’s time to plan how you will get there. There is no point in wanting to get out of the quagmire of doubt, for example, if you don’t have an efficient plan in place for it.
How much must you have available per month to get anywhere? Determine what you will do to achieve this. Whether it’s cutting budget spending or getting extra income, it’s important to aim and shoot!
3. Think annually
Most people, when setting up their budget spreadsheet, all calculations based on monthly earnings and expenses, right? But when they see the size of the hole or that they can’t balance their finances in just a month, they soon despair and give up their control so as not to stress.
To prevent this from happening beyond monthly control, extrapolate it to the next 12 or 24 months. Yes, you will see that decreasing the number of cable TV channels will produce big savings in the long run, for example.
4. Pay cash
Ok, we know this is definitely not a Brazilian custom. But be aware that all credit purchases have built-in interest, and that cash purchase, in addition to cheaper, allows negotiations.
Therefore, you get used to buying more paying on the spot. Perhaps in the first months of planning this will not be entirely possible as your earnings will be over-committed. But as you get rid of your debts, get into the buying habit once and for all.
5. Calculate working time expenses
This is a great tip for those who have the habit of buying on impulse. Divide your net monthly earnings by the amount of hours you will work in that month. So you will know how much you earn per hour worked.
When you paint that urge to buy the latest smartphone on the market, from the math to find out how many hours you have to work to be able to pay for the joke. 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 are not listed here? Tell us in the comments and enrich the discussion on this subject!