I often meet with colleagues who ask me for advice on how to start organizing their financial life, which seems like a simple process: cut costs, save money, spend less than you earn. However, some things can influence very easily so as not to reach the goal.
So, let’s list here some points that will be decisive for you to achieve your goals:
Map all your disbursements and make a classification of these
Writing down all disbursements, whether of the month or year, helps in the preparation of your cash flow. By classifying these disbursements, you will be able to make a better decision about what can be eliminated, or what can be replaced by cheaper options and those that are not possible to change.
Define the objectives for your investments
If your income is greater than your expenses, you are able to start investing (in the end without money there is no investment). The issue now is to know what you will do with that money in the future, so you can make better decisions regarding the investment products that you will adopt. If your budget closes with a deficit, start with cost containment plans.
Define a monthly value for the item “Pleasure”
Rather than cutting expenses and investing, your planning should focus on the quality of the expenses you have. If the focus is only on investing and cutting expenses, your planning will not last for a long time, as it becomes boring – or perhaps torture. The objective is to improve your quality of life, that is, to better use your resources thinking about today, not tomorrow.
These are simple tips for you to begin your planning and for those who want to deepen their knowledge on this topic, we will be preparing new materials on it in the following articles.