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Lack of financial planning can bring serious problems to people's lives.
Who has no control over their own money ends up:
Spending more than you should;
Rolling up debt, interest;
And getting worse and worse, even ruining personal finances altogether.
It is therefore more than essential to live with your organized finances.
But don't worry if you still don't take care of your personal finances the right way .
Putting together a good plan is no big deal.
The important thing is to start, because with a little dedication and proper guidance you can reverse this once and for all.
To help you, we have listed below 7 strategies that will surely improve your relationship with money.
7 Strategies for Organizing Personal Finance
1. Find out how much you spend per month
The first step in organizing your finances is to find out exactly how much and how you are using your money.
Therefore, strive to keep track of everything you spend.
There are several ways to do good financial management, such as:
Personal financial control applications ;
and even a sheet of paper.
If you prefer technology, then I'll point you to Mobills , the app that lets you record all your expenses and income, not to mention the many amazing features like Budgets and Travel Mode .
However, if you find the spreadsheets better, put all your monthly expenses, from the most basic, such as food, health expenses, basic bills (water, electricity, telephone), installments and bills to pay, leisure expenses, monthly fees , etc.
The important thing is to list absolutely everything that is an expense , however small it may be.
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2. Cut unnecessary expenses
If your monthly income is less than or close to what you are spending, do a careful analysis of your budget and see where you can make cuts.
Do this through a scale of priorities: entertainment and leisure spending, for example, can be reduced and exchanged for cheaper or even free activities.
Prioritize essential expenses such as housing, health and food.
Often, people buy on impulse without thinking about the damage this can cause in their pocket at the end of the month.
So avoid consumerism : Before spending your money, consider whether it is really necessary and if it will fit your budget.
A good way to control this is through a checklist : every time you go shopping, write down what you need first and only buy what is written there.
This will prevent you from bringing in what you don't need and consequently save you money.
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3. Save a portion of your income every month.
It is important that everyone starts building savings as soon as possible.
If you don't do this yet, don't waste any more time: set a portion of your income to be saved monthly .
At first, it doesn't have to be much: but keep in mind that the recommended amount is between 10% and 30% of everything you earn per month.
This way you will have greater security within your financial planning.
One way to stimulate this savings is to set goals.
Clearly define what you want to do with this money and save accordingly.
For example, if you are aiming to raise money to pay for your child's college when he or she is 18, you should start saving early by applying a certain amount monthly to a long-term investment that will pay off to the full amount needed. .
And Mobills can help you with your goals and objectives.
With the Goals feature you can record what your goal is, how much you need to reach it and how long you want to reach it.
This way, Mobills tells you how much you have to save each month to do what you want.
mobills screen print
4. Invest properly what is spared
To manage your savings wisely you have to make it pay off, as it will do no good to raise a sum if it stays still "under the mattress".
Therefore it is important to always invest your money in some investment that gives you income.
If you have a more aggressive investor profile, prefer riskier applications such as stock investing .
If you follow a more conservative line, it is best to opt for safer and more stable applications such as CDB and Treasury Direct .
How to invest money: the ultimate walkthrough!
5. Have an emergency reserve
Remember that unforeseen events can happen anytime.
Therefore, it is important to set aside part of the monthly income to create an emergency reserve .
It will serve for situations where you need to use money urgently, such as health cases, for example.
By safeguarding yourself this way, you will have more security and no need to borrow .
6. Avoid debt and always buy cash
If you have any debt, work to get rid of it as soon as possible!
Negotiate better terms with the bank to settle it, and if your budget is tight, prioritize the payment of those with the highest interest rates.
Try not to make purchases on credit to avoid being held hostage by interest.
Prefer to always buy cash rather than installment, because paying on the spot you can negotiate a discount and save the value of a installment that would drag on for months.
Also, avoid using overdraft as much as possible .
And if using a credit card or loan is unavoidable, do some research first to find out what are the conditions and interest charged, as well as the fees and the Total Effective Cost (CET) of the transaction.
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7. Always check how you are doing
Check your progress every month.
Make sure your finances are behaving as planned.
Otherwise, reassess and determine what needs to be changed.
This not only helps to keep your money in order, but also to realize what is wrong faster.
Bonus Tip: Use Personal Finance Tracking Software
To organize your budget and better plan yourself, the help of a financial control system can be very valuable.
They are practical, intuitive, automatic and help to show more clearly how your situation is.
Among those available on the market, Mobills is a great option as it allows you to record and track your personal expenses and income from anywhere.
In addition, it is the highest rated personal financial control application in Brazil, being used by over 5 million people around the world.
mobills home screen
Organizing personal finances is the first step for you to take back control of your financial life.
No matter how much money you make, if you don't educate yourself financially and worry about managing your income and expenses, you will have financial problems sooner or later.
If you have never worried about this topic before and decided to study from now on, know that no matter what your financial situation is at the moment, there is no solution!
For your happiness, there are already great tools to help you on this journey, like personal financial control apps or even spreadsheets , so enjoy!
Finally, I hope this post has helped you understand the importance of financial planning.
Don't waste another second (time = money), start getting your personal finances right now!