Contrary to what many people think, the steps to catch up on finances are quite simple. The Administrators site listed 10 steps for you to organize your portfolio and get your finances up to date, we highlight 6 of these steps for you, check below.
1 – Budget Day
Set aside a day in the month to organize your financial life. Set up a spreadsheet with fixed expenses, debts, payments, eventual expenses. Also enter all your income, such as salary, rent , occasional earnings, etc. Build your monthly budget, adjusting spending to revenue. The ideal is that there is always a surplus of 10% to 20%.
2 – Set priorities
If the budget is in disequilibrium – expenditures greater than revenues – the way is to immediately reduce expenditures. This adjustment period requires discipline. Remember that it is necessary, but transitory. Going to the restaurant, outings, trips or superfluous purchases can wait until the financial balance is restored.
3 – Set financial goals
Determine a value, a deadline and a financial objective to be achieved. Example: buy a car worth R $ 30,000, within two years. Analyze your budget and see how to reorganize it in order to get the car on time.
4 – Always save
There is no organization of personal finances without savings. Take the task of saving 10% to 20% of your monthly income as a commitment.
5 – Escape from easy (and expensive) credit
Credit lines such as overdraft and credit cards pose serious threats to any financial planning. Interest rates are higher and the person is seduced by the ease of contracting the debt. Remember that easy money costs a lot more.
6 – Learn to invest
From a certain level of organization of finances, the person has resources for investment. The accounts are up to date, there are no outstanding debts and the goal of spending less than you earn has become law. The time has come to make money work for you . Search for investments according to your profile. To do this, ask for the help of your bank manager, count on the help of companies specialized in providing this type of advice or be trained to take on the task of taking care of your own investments.
Get out of debt
Before thinking about realizing dreams and big financial planning , it is important to check how the debts are.
Of course, you can – and should – always aim high, but thinking real, prioritize financial health as soon as possible.
Obviously, we know that a person in debt does not have good financial health. How about, then, putting this goal as your first goal of the year?
After drawing the amounts due, make an action plan and understand how much you should save per month to get out of debt in the shortest possible time.