It is critical to plan financially to keep Finance Guide organized and to achieve the proposed goals.
Having control over the budget has been a major challenge for Brazilians, since, according to Agencia Brasil survey, household indebtedness has grown to 58% - the highest level in the last 7 years.
Many people believe that finance guide is an almost impossible task, either because they consider their salary insufficient or because they simply do not know where to start.
But the point is, without financial planning, it's hard to get anywhere, since it precedes all the paths in the quest for success and is part of the lives of most people who are financially independent.
Financial planning is the exercise of controlling the inflows and outflows of resources. It is to organize the finance guide in order to create a mantle of protection of the necessities, that is to say, we are talking about a powerful tool to reach goals and realize dreams in the short, medium and long term.
William Edwards Deming, a specialist in quality management, went so far as to say that "you do not manage what you do not measure yourself, you do not measure what is not defined, you do not define what you do not understand, and there is no success in what you do not management."
And that is precisely it: you have to plan to know the current situation and seek effective methods of improving it. But, how to do good planning?
It is important to take some measures that can minimize the mishaps along the way and ensure success in the strategy.
Therefore, the ideal is to make a complete diagnosis of the current financial situation and to find out what the biggest objectives are.
One of the main pillars of planning is discipline. It is necessary to maintain a commitment to the goals to ensure good results in this organization.
There is no way forward for a strategy that will only be followed for a few months. Planning should be thought out for years and decades.
Are you interested and want to know more about financial planning so as not to let the debts get out of hand? So, keep following this post and check out the next topics!
1. WHAT MAKES FINANCES OUT OF CONTROL?
Who likes to feel lost or lost? No one, right? Especially when it comes to finance.
Without a doubt, a person who can control their financial situation will feel much quieter and safer, having more comfort and less risk of getting into debt.
Lack of control is the main warning sign that the financial situation is not well, since it is much easier to turn a blind eye to problems than to face them.
And, of course, when the worst happens, it is more practical and convenient to blame other external factors than to seek remedial action.
Every day people are moved by impulses and desires. Therefore, expenditures are not only with fundamental needs, but with superfluous things that can be avoided.
When you put the spending on these spreads in the spreadsheet, you can have the exact notion of how much money you can spare to invest in something more profitable.
Not everything that is offered is advantageous. Spending so much money on a new car, buying a house out of the standards that your income manages to keep or making several expensive trips, for example, may be the possible pitfalls that cause a collapse in your finances.
It is important to value all the money that is earned, not to let finances out of your control.
So, the solution is to put together a good and careful planning to organize the finances and spend in a balanced way, always according to the needs.
The first step to improving your quality of life and achieving your goals is to understand your financial situation.
2. UNDERSTAND FAMILY FINANCES
The principle of a financial education is to understand how one spends, how one saves and how one invests the money to improve the quality of life.
High levels of debt have damaged many people's lives. So, it is important to know where the secret lies: it is in balance and in directing the resources to generate reserves.
Saving money and saving are wise decisions for those who want to live free of worries and make future plans. The use of money requires the least amount of planning.
So before spending, it is critical to ask yourself: is this just a wish or do I really need it right now?
Be an administrator of your finances, as you will learn how to spend your resources well. Planning means organizing yourself before making a decision, considering the possibilities of achieving the goals.
Seek to understand all your essential needs by designing a control that allows you to have an overview of all your expenses and the salary you receive to sustain them.
Making a family budget is the most important step in the whole process of financial education, since it allows to promote control and balance, to generate personal satisfaction, to take advantage of the political and economic moment, finally, to assume a life project, which can be to invest in education, make the dream trip, have the house of their own.
A financial education is indispensable to get you to work out a plan to realize your dreams.
And remember that the main tool that will consolidate such a process is budget control. It will balance how much you spend on what you earn.
So how to draw up a budget control and understand the finances of the family perfectly?
This is not an easy task, so it takes a lot of discipline, commitment and honest analysis of the financial situation to carry it out.
It is necessary to take stock of the current condition, using a worksheet that will relate everything you own, the values you receive and all your obligations.
First of all, define your fixed costs per month (those that are part of your daily life). Put them on the worksheet. Sporadic spending should also be part of the spreadsheet on a monthly estimate, so put the amount of resources you spend on medicines, clothing, recreation, etc.
Next, make a relationship between the money inflows (the total family income) and the necessary obligations.
Then, compare the expenses you will have with the resources you will receive. Try to find a balance point.
Calculate everything, and if you find that the bills do not close, try to fit the income into your budget. Observe if there is no possibility of reducing expenses or even eliminating those that do not interfere in the routine of the family.
It is worth remembering that rent, food and education expenses cannot always be reduced.
But, on the other hand, the consumption of services such as energy, water and telephone can be reduced, with enough control in the use.
This economy means more money left over at the end of the month to invest or supply some desire (goal).
3. CREATE FINANCIAL GOALS
After understanding your finances, it is imperative that you define your financial goals.
This is a time when you have to be realistic. It will not be too soon to set the goal of saving $ 50,000 in the year if the salary is $ 1,000, right?
That said, always try to set goals that can be achieved. Break down your biggest goal into short-term goals.
For example, if you want to have a reserve of R $ 2,000 at the end of the year, start adding R $ 100 per month and, when possible, increase the amount. Always ask these 4 questions yourself to be able to define and fulfill your goals:
"What is my goal?": Do you want to accumulate assets, ensure your retirement, take a trip or ensure good education for your child? Here you will answer what you are looking for;
"When do I want to reach you?": Do you want to reach your goal in 1 year, 5 or 50 years? Setting a date, you will avoid loopholes for subjectivity and will still do effective planning;
"How much do I need to reach my goal?": Will you need $ 5,000, $ 10,000, or $ 100,000? Try to make an estimate and always be a bit pessimistic. Estimate a higher value;
"How can I achieve it?": Do you want to invest in investment funds? Make a consortium? Invest in savings? Set the investment that will be most suitable for your goal.
Posted on June 13, 2018 at 02:30 PM