Personal Finance Tips For Beginners
Posted by Gjohnson on 05/21/2020
This is the right time to learn: By following these easy tips for managing your personal finances , you will make your money run smoothly.
- List what goes in and what goes out Trusting that you will have clear in your memory everything you earn and what you spend is a trap that you have to get out of now and the way to do it is very simple: keep a list of income and expenses.
Whether in a notebook, in your agenda, a notebook or a blackboard, everything that goes into your pocket (salary, other income ) and what comes out of it (payment of debts, purchases).
List the expenses that are fixed, such as the payment of services, credit card, pantry, payment of credits and loans.
You should also keep your daily purchases written: this way you will learn to identify where there may be money leaks.
- Consider saving as if it were spending A good way to save is to take your income into account and write the amount that you are going to save in your fixed expenses notebook .
Why target it? Very simple: you are going to give priority to the act of saving and you will no longer fall into the common sense that you should save only the money you have left over.
Better take it as a fixed monthly amount and you will significantly increase your savings. That money can be used for emergencies or something useful.
- Identify priorities Living comfortably is important, but this does not mean that you have to buy just to have a good time.
If you buy on impulse or the pleasure of doing so, in the end the stress of accumulated debts can affect your health.
In your list of income and expenses, identify what are the priorities and what are the things that you can and should do without.
- Always compare prices
Either because you eat your time or because you had not noticed, you can save money by comparing prices before buying.
Do not let go with the first impression and when you buy something, make sure that the price is reasonable and goes hand in hand with its quality.
Find out if you can buy the same item elsewhere for a cheaper price; Often you end up paying for the brand's fame, when a lesser-known one is equal to or better than the one you are acquiring.
- Leave the excuses You can't get off to a good start if you don't give up the pretexts before: if you think that targeting your expenses is impossible or useless, analyzing what to buy or not buy makes you lazy, you're getting in the way.
Start with a good attitude so that you do not abandon the process, be disciplined and constant: when you least expect it, the previous tasks will be natural.
Because if you don't discipline yourself and take this with a good attitude, then you will never achieve results.
- Give up bad habits You have to give up those bad financial habits that prevent you from having a healthy pocket and a very clear example is ant expenses.
Those little expenses that little by little are consuming your money and by the time you realize you have nothing.
What if the gum, the loose cigar, the tamale on the corner, the boleada every week, the tip for the come-come, each and every one are making a hole in your finances.
Another bad habit is to eat daily on the street: yes, it is easier to get hot food served at your house to cook every night to take lunch.
But calculate how much you spend on eating out a week, then a month and finally a year: surely the amount will surprise you.
- Don't put all your eggs in one basket If you plan to invest your savings in starting a business, do not put everything you have into that project.
The best strategy is to only invest part of your money.
This is because you must be prepared for any emergency that arises: be it an unforeseen health condition or a payment that you cannot postpone.
- Stop paying what you don't occupy Get rid of all those services that you hired on impulse and that you keep paying, even if you don't use them.
Let's say you have cable, internet and telephone: you never watch TV and talk all the time through your cell phone, therefore, there are two things here that you can do without.
Repeat this exercise with everything you have hired for you to see and decide the movements you have to do to save.
- If you travel, buy in advance
Buying travel packages in advance can be much cheaper than buying just a few days or weeks before your trip.
That greatly influences the price you will find, since the closer the date of the trip, the more expensive everything is related (tickets and accommodation).
Another option is to travel in the low season, in this way the trip in addition to being cheaper, you will have the possibility to enjoy the tourist destination without the sea of people that are in high seasons.
- Also save for retirement It is important that you also consider saving for retirement.
A recommendation made by institutions such as the Ministry of Finance and Public Credit is to make voluntary contributions to your afore.
With this you will increase the capital that you will have for your retirement stage and you will not be limited only to what was automatically kept for your retirement fund.
If you have no idea what your afore is, check out this site and get to work so you can begin to have control over your retirement.
Also consider taking out insurance for major medical expenses so that you are protected against any accident or illness.
- Stay informed It's about constantly educating yourself about personal finances and financial products like cards, insurance, and credits.
Get advice either through articles or with experts so that you learn to have better control of your finances and put it into practice.
Institutions like Condusef have very useful information and you can learn in a fun and very simple way about finances.
Investigate and stay informed so that you have a better orientation when choosing a financial service or to avoid being a victim of fraud.
- Do not apply the card and be total Among the advice that institutions such as Condusef constantly insist is that if you have a credit card, try not to give the card and that you are total with the payments.
Being a totalero is that you pay all of your debt so as not to generate interest, since these eventually accumulate and make the debt bigger.
Remember that the credit card is a great tool to support you with expenses and get you out of trouble: it is not an extension of your salary.
- Know your capacity for debt Part of taking stock of your finances has to do with knowing your ability to acquire debts; in other words, how much of the budget you have registered can be used to pay debts.
This way you will know how much to borrow when you have to.
To find out your ability to pay, go to your list of income and expenses: divide these into fixed and variable income / fixed expenses .
Ideally, your fixed expenses are less than your income , as that provides you with the ability to pay. If this is not the case, you should start trimming.
- Take care of debts
Again let's talk about fixed costs . Credit cards are an example of this, there are those who spend it paying the minimum fees.
Sometimes they already paid the cost of the item they bought, but they still pay interest.
Also, you have to be responsible with the use of the credits and settle as soon as possible to maintain a good credit history.
Also check your information in the credit bureau so that you know how you are evaluated and if there are any irregularities such as credits that you did not request.
Everyone has the right to view their history once every 12 months at no cost.