Personal
finance is a subject that interests people of all ages. It is of essential concern
to those who want to have a healthy and balanced life. If you want to
achieve success in this area know that is not difficult.
You just need the willpower and determination
to acquire new financial habits and gain the habit of saving money and
consciously thinking about the future. Now check out these 9 best personal
finance tips:
1.
Have a personal financial management tool
Controlling your spending and knowing
exactly where your money is going is a key step to your personal finance
management and one of the most important personal finance tips. There are
several tools available to assist in this task. The most common of these
is expense control sheet.
An Excel template can help you record
the revenues, expenditures and their respective categories. Though
affordable, the model requires constant updating so that no expense is left
out.
2.
Use the best personal finance tips
The rule of 50-15-35 argues that income
should be divided into spending targets. You should allocate 50% of your
revenues for essential expenses such as rent; light bills, water,
gas; school fees, health insurance, etc.
The equivalent of 15% of the income
goes to financial priorities. If you have debt, this amount is intended to
settle them. If you are in good standing, keep 15% in a savings, fixed
income fund or other investment.
The remaining 35% will be used to
maintain your lifestyle: leisure, fitness, personal care, etc.
3.
Renegotiate debts before saving money
This should be your first financial
priority. Before you start saving, it is important to know what your debts
are and look for your creditors to renegotiate the payment. Remember to
close a deal that you can effectively fulfill.
4.
Create an emergency reserve
Everyone, at some point in life, has a
financial emergency: a broken car, a large expenditure on medicines, school
supplies which was not foreseen in the list ... To deal with these unexpected
expenses without having to drill a hole in your current balances, create an
emergency fund. Save a little every month until you reach the equivalent amount
of three to six months of your monthly income.
5.
Retire credit card
There is no denying that the credit
card is often a hand on the wheel. However, there are people who do not
know how to deal with the plastic money. Result: they lose control of
spending - bursting their budget. For the sake of your personal finances,
retire your card and adopt the cash payment.
6.
Stop borrowing
Many people are so used to borrowing
that they regard that process as part of their financial routine. If this
is your case, stop now. Loans should be considered as the last resort and
not as a habit. Every time you want something or take a trip, save the money
for that purpose.
7.
Take care of your retirement as soon as possible
The sooner you worry about your
retirement, the greater the amount you will be able to save for this
purpose. Whether through a private pension plan or even putting some money
in savings, the time to start is now.
The main rule regarding personal
finance tips is cultivating the habit to save for the future without
sacrificing the present. Start gradually and establish healthy financial
habits.
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