Financial commitments, debts and responsibilities never cease to be the order of the day, which translates into constant disbursements of capital, which we often do not have when required.
From the tuition of children, through basic expenses such as food, rent housing, clothing and footwear, public services to transportation, you can see among many other items as your income decreases.
For factors such as the ones mentioned above, the conception of money is usually a little distorted from the purpose it should actually have.
If you are one of those people who identify with the above, we invite you to stay seated and continue reading this article because we know that much of the information that we present below will be more than useful.
The true purpose of this article is to provide you with all the basic elements so that you, in the comfort of your home, learn to efficiently manage your resources and as a result of this, lead a much calmer financial life.
Contrary to what you may be imagining, we want to tell you that you do not need to be an expert in finance or a Wall Street broker to manage your money and achieve a healthier financial life.
It is about understanding, in a didactic way, the basic concepts of resource management based on your fixed income and focused on managing capital in your home economy, personal finances and saving money efficiently.
It’s all a question of forging a much more objective financial mentality and seeking to educate, assess and carry out the accounts with an optimal and appropriate method that suits your needs.
7 tips or golden rules that will allow you to be successful or successful in managing personal finances and saving money:
You should never spend beyond what you earn
This is tip number one for a simple reason. Generally this is something that we omit in everyday life and does not require advanced knowledge in economics or finance.
It is just a matter of simple logic and common sense (sometimes the least common of the senses) because if you spend more than what enters your coffers, the expense will always be disproportionate in relation to the level of income, which will leave you in a constant deficit situation.
The delicate thing about this situation is that you will always be “debited” so you can not allocate resources for the payment of debts that relieve your obligations; this situation will also make it difficult to save capital that can serve as backup.
As we mentioned earlier in the introduction, this is a very important aspect to properly manage personal finances and it also becomes an indispensable tool to use on many other occasions.
Being “ad portas” to acquire housing, vehicle or debt through some type of bank credit, Internet credits, leasings, free investment loans or credit cards, are some of the situations where being educated at a financial level will make a big difference. This way you will learn how and when to lean on these products without falling into a debt loop.
Perform regular and constant monitoring of your credit life
This is another important aspect to which you must pay great attention because it is nothing more and nothing less than your historical record of credits and levels of indebtedness with financial entities and businesses of all kinds.
Based on what is contained in your credit history, you will be entitled or not to bank loans depending on the level of risk you represent for these institutions lending capital.
An impeccable credit history will be your best ally when buying a home, vehicle or supplementing the payment of your children’s college education. You can periodically track through the Internet or directly with your banking advisor. They usually have access to this information just by entering your identity document in the platform of the credit bureaus.
Prepare a budget adjusted to your level of income, expenses and needs is usually the most elementary alternative to monitor not only the amount of fixed and casual income you have, but also track your expenses.
The purpose of this is to know in which items your funds are going and to what extent or percentage you spend your money month to month.
Carrying out a budget is a task that will require all your disposition and that includes allocating some of your time each week to update it.
For this purpose you can make use of digital or technological tools that are usually at your fingertips like Apps for mobile, or if you prefer … you can take your own control in Excel or similar. The important thing is to keep your records up to date.
Digitize your finances
For this purpose, you can use spreadsheets in Excel using your computer or use web, or mobile applications, available in application stores, thus obtaining access from a wide variety of devices.
Month to month you can also pay your bills through the internet which will save transportation costs or gasoline, time and interest or collection costs by your creditors.
You should focus on canceling all your debts as soon as possible. For this you can prepare a list that includes all your financial commitments, review your budget and determine what percentage of your income is destined to the payment of debts.
You must ensure that they do not accumulate because interest, delinquency and collection expenses can dramatically complicate payments.
Remember that bringing your obligations up to date results in a healthy credit life that will serve as a backup for applying for new loans, should you need them.
It is a saving that you should not use unless there is an eventuality or emergency that deserves it. It is best to set aside a monthly amount that is 10% of your income. As much as possible, in the future, it is advisable to invest a part of this 10% to increase your assets and acquire your new assets with the returns of these and not with your main income as an expense.