Personal finances have become a topic of great relevance, especially, at that stage of our life when we achieve some financial independence. However, as we leave the “financial umbrella” of our parents, more individual responsibilities arise.
Those responsibilities are determined by the choices we make about our future. For example, if we decide to start a family, have a partner, run a home, pursue postgraduate studies, learn another language, etc., it will require out of pocket and what we do to strengthen or weaken it.
In any case, a good management of personal finances will determine and will be what establishes our style and quality of life. It is undeniable that yes We seek to live without financial pressure and without the anguish that this entails, we must learn to manage money well.
Contents
- 1 How to improve our personal finances
- 1.1 Evaluate yourself
- 1.2 Create the habit of saving
- 1.3 Forget about your parents’ money
- 1.4 Find various ways to secure your savings
- 1.5 Don’t compromise your income
- 1.6 Never spend more than you have
- 1.7 Be aware of how much you spend
- 1.8 Make a regular budget
- 1.9 Look for other sources of income
- 1.10 Get advice from the experts
How to improve our personal finances
In order to have a proper management and personal economic performance, avoid arriving financially tight at the end of the month and have some slack and monetary solvency, It is good to have a little common sense when it comes to income and a little common sense when it comes to expenses.
No pocket can handle more outflows than inflows without causing personal finances to collapse. We must bear in mind that The inputs must always be greater than the outputs in the financial notebooks that we keep.
As logic is not a quality of all people, and The economies of many societies have ups and downs, it is good to know how to navigate the minefield of personal finance, so here are some tips.
Evaluate yourself
Take into account who you are, what you like, what are your hobbies, strengths and weaknesses and avoid anything that makes you spend unnecessarily.
Create the habit of saving
Just as no country can progress without saving, no person increases or improves their personal finances if you do not save a little of what you get periodically, either through your work, the parents’ remittance or a scholarship.
However small the amount, it’s always good to save a little and not spend it all. This will give you a financial cushion and the guarantee of reaching other goals.
Experts in this field consider that Saving between 15% and 20% of what we receive each month is a way to build a good fund and to strengthen our personal finances.
Forget about your parents’ money
If you are aware you will know that what your parents have is not necessarily yours, so it is better not to have those assets; the best thing is that if you are independent, have the freedom to spend what is necessary and save enough.
You will surely think that the debts and financial responsibilities that your parents have are not your commitments, Well, you should think the same about the goods, money or any other asset they have.
Find various ways to secure your savings
In addition to the banks where you can keep your money, under the conditions that they offer, there are also other ways to multiply those assets, such as financial investment, purchase of shares, etc., which will help you obtain greater profitability and strengthen your personal finances.
Another way to strengthen your finances is by buying currencies, hard currency, if your case is that you win in weak currency or you are in a country where the economy is unstable.
There are those who risk investing in bitcoins, buying works of art or any other good whose value multiplies over time.
In these cases, it is better to seek the advice of experts to help you feel the market, both in the capital and investment part, and to envision which part of the market is where you can invest without major risks.
Don’t compromise your income
That is to say, avoid getting into debt; Well, it is always better to have the full money
of your fortnights or monthly payments to be aware that a part of that income will not be seen in your account.
The Healthy personal finances begin by paying off all debts and trying not to make commitments that reduce the entry of money.
Never spend more than you have
This is another premise that economists, financial advisers, accountants and other specialists take into account, it means having pending payments.
This is very easy to assimilate: If you are spending more than what you perceive, at some point you will have huge accumulated commitments, and the pressure to pay them off will become a spiral from which it will be difficult for you to get out successfully.
Be aware of how much you spend
This requires that you become aware of your income and your expenses or expenses. To maintain adequate personal finances, list what your fixed expenses are, how much you can spend on what is not on your list of mandatory commitments and even how much you can spend.
If you have credit cards, remember these are double edged financial instruments, Well, as long as you spend, you will have to pay on time, and if you don’t want to pay a lot in interest, you should always deposit a little more than the minimum payment set by the bank.
Make a regular budget
According to the economic stability of the place where you live, you can make a projection of your expenses and your savings, as well as the solidity of your income.
If your personal finances depend on a single income, have a projection of fixed expenses, a part for savings and the other for the eventualities that arise.
If the economy and currency are strong, then it could be more long-term projections, like a year or more. So you can have an overview of income and expenses, the certainty of how much money you have and even how much you can really spend.
Look for other sources of income
Nowadays, digital and information technologies have expanded the possibilities of having other income.
If you have a formal, stable and well-paid job, it is likely that you have not thought about another source of income; Nevertheless, it never hurts to have another entry that improves your personal finances, either as a free lancer, community manager, advisor, etc.
The field is supremely wide and surely you will have a space in this maremágnum of possibilities that is Internet.
Get advice from the experts
To maintain a certain well-being in terms of personal finances and avoid being agitated looking to “scratch” small funds, it is essential to have a financial education or seek the help of an expert, whose advice marks a route towards the economic stability that we long for.