6 Tips To Keep Your Financial Health Up To Date
January 3, 2020
Dealing with money is not an easy task for everyone. Many people end up losing control and this often prevents them from achieving their financial dreams, such as buying a home, taking a trip, renovating the room, and so on.
To reach them, it is essential that you keep your financial health up to date. We have separated six tips that will help you have a balanced financial life.
1. Take good control of your money
The first step for those who want to maintain good financial health is quite obvious: make good control of your money. This means you need to know how much you earn and how much you spend to adjust your expenses to your incomes. With this control you will find out if you spend more than you earn or are within limits.
Controlling your finances will also help you identify where your money is going and if you are spending too much on superfluous items.
2. Do not abuse the credit card
Speaking of spending, there is a famous villain of financial health. For those unable to keep track of the credit card in hand, the tip is to leave it at home and use it only when it is sorely needed. This will save you from impulse shopping. An extra step may be to cancel the card and make your purchases always in sight.
Passing the card is a pretty simple task, but remember not to confuse credit with money. Be careful not to forget that you will have to clear everything when the bill arrives.
3. Keep the standard of living always below your financial reality
This is a tip that few people follow, but it is of great importance to anyone’s financial health. Living within budget limits can be very dangerous. This behavior increases the chances of any unforeseen events causing a major headache.
Ideally, you should always live with a lower standard of living than your income can afford you. Thus, you will always have a surplus that can be put to good use to make a financial reserve, either emergency or investing.
4. Get rid of Debts
Doubts are a problem that the Brazilian knows very well. According to the National Confederation of Trade in Goods, Services and Tourism (CNC), released this year, more than half of Brazilian families have some kind of debt. The fact is that having overdue accounts disrupts your financial health balance. So you need to plan to get rid of them as soon as possible.
To eliminate these issues, it is important that you create a payment plan. Prioritizing debts with higher interest rates may decrease their loss. You can also choose to start by paying the cheapest. This way you will get rid of a debt faster, serving as an incentive to pay off the remaining ones.
5. Have an emergency reserve
We are all subject to unforeseen events. Whether it’s a health problem or the loss of material goods, we never know when we’ll need an extra buck.
To make this process as smooth as possible, it is good that you build an emergency book to meet unplanned needs. Creating this reserve prevents you from having to make a loan or use the overdraft, damaging your financial health.
6. Make good investments
Just as important as getting rid of debt and getting a good financial handle is knowing how to invest your money. Leaving your money on hold or storing it in low-profit applications such as savings can make your money lose purchasing power, meaning the same money will buy less things than before.
Look for investment modalities that value your real money. There are several options available on the market today. If you have the most conservative profile and are looking for safe investment types such as savings, you can apply for Fixed Income securities such as Bank Deposit Certificate (CDB), LCI and LCA (Real Estate Credit Letter and Agribusiness Credit Letter, respectively) and Treasury Direct, for example.
On the other hand, if you are bolder and willing to take more risks in exchange for higher returns, you may choose to buy shares or trade futures on the stock exchange.
By following these tips you can understand where your money goes and how to take better care of it. Adopting Simple Practices – But Effective – You can maintain the health of your finances and be closer to reaching your goals.