Dealing with money is not an easy task for everyone. In the end, many people lose control and this often prevents them from realizing their financial dreams, such as buying a house, taking a trip, renovating furniture and others.
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To achieve them, you need to keep your financial health up to date. We've put together six tips that will help you have a balanced financial life.
1. Take control of your money
The first step for anyone who wants to maintain good financial health is obvious: you must control your money well. In other words, you need to know how much you earn and how much you spend, to adjust your expenses to your income. This control tells you whether you spend more than you earn or whether you are within limits.
When you keep track of your finances, you can also determine where your money is flowing and whether you spend too much on unnecessary items.
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If you're having trouble controlling your finances, use technology to your advantage. You can use financial control apps to better organize your money.
2. Don't go overboard with your credit card
Speaking of expenses, there is a famous financial health villain. For those who cannot keep track of their credit card, it is advisable to leave it at home and only use it when it is most necessary. This prevents impulse purchases. An additional step could be to cancel the card and always pay for your purchases in cash.
Swiping the card is a simple task, but don't forget to differentiate between credit and cash. Don't forget that you you have to pay for everything when you spend.
3. Keep your standard of living always below your financial reality
This is a tip that few people follow, but it is very important for everyone's financial health. Living on a budget can be very dangerous. This behavior increases the likelihood of unforeseen events causing a lot of headaches.
Ideally, you should always live at a lower standard of living than your salary can provide. So you always have a reserve that you can use very well to create a financial fund, whether to use in an emergency or even invest.
4. Get rid of debt
Debt is a problem that Brazilians know very well. According to the Federal Association of Commerce of Goods, Services and Tourism (CNC), published this year, more than half of Brazilian families have some type of debt. The fact is that falling behind on bills makes it difficult to balance your financial health. So you have to plan to get rid of them as quickly as possible.
To fix these issues, it's important to create a payment plan. Prioritize debt with higher interest rates, which can reduce your loss. You can also choose the cheapest one. This way, you become debt free faster and serve as an incentive to pay for those that are still outstanding.
5. Have an emergency fund
We are all subject to unforeseen circumstances. Whether it's a health problem or the loss of material possessions, we never know when we'll need extra money.
To make this process as smooth as possible, you should set up an emergency fund to meet unplanned needs. By creating this provision, you don't need to borrow or use an overdraft, which affects your financial health.
6. Make good investments
Investing your money is as important as getting rid of debt and having good financial control. If you don't spend your money or save it in low-profit applications, such as savings, you could cause your money to lose purchasing power. This means that the same money is used to buy fewer things than before.
Look for investment methods that give real value for your money. There are several options on the market. If you have a more conservative profile and are looking for types of assets that can be sold safely, you can invest in fixed income securities, such as CBD, LCI It is LCA (Real Estate Letter of Credit and Agribusiness Letter of Credit, respectively), or Treasury Direct.
On the other hand, if you are braver and willing to take more risks against higher returns, you can buy stocks or trade futures contracts in the stock market.
If you follow these tips, you will be able to understand where your money is going and how to best keep it. By implementing simple but effective practices, you can maintain the health of your finances and get closer to your goals.
