Let’s look at some keys to good management of our personal finances:
Meet Financial Situation
Meet our financial situation is the starting point for the proper management of our personal finances. From the knowledge of our financial situation is to plan our personal finances, i.e., we set our financial goals and design plans that allow us to achieve those objectives.
Set Financial Goals
Set financial goals and guides us motivation to improve our financial situation, as well as allowing measure our progress. Our financial objectives must be clear and measurable, for example, have a monthly income of 5000 for next year; although it is possible to establish targets, for example, achieve financial freedom.
Develop Personal Budget
Having a personal budget allows us to plan better use of our money and have greater control of our expenses, in addition to helping us acquire the discipline needed to meet planned. Once developed our personal budget must have the discipline to follow, but also the flexibility to change as needed.
Spend Less
Just as it is important to always look for ways to increase our revenues from money, it is also important to always look for ways to reduce our expenses. Some ways to spend less is to avoid unnecessary costs, consume less, always look for deals and discounts, compare prices well before buying, always negotiate a better price, etc…
Get Out of Debt
A key aspect in managing our personal finances is having the ability to get out of debt, but also to help keeps acquiring them. Some forms are cut out of debt credit card, debt trading, look for a debt consolidation loan; allocate a percentage of our revenues for the cancellation of debts, etc…
Save
Another key aspect in managing our personal finances is having the ability to save, that is, to allocate each month a portion of proceeds to a stock savings that help us to invest or emergency. Some tips are to allocate at least 10% of our total revenue savings this bag, this bag is in an account in the bank, and us to spend this money before making any payment.
Invest
In addition to saving, we also have the ability to invest, that is, to use the money we’ve saved on some investment vehicle, so we can make it grow. Some tips before investing are familiar with some concepts related to financial investments, and well informed about the different vehicles, instruments or existing investment alternatives.
Insurance
Insurance probably will not help us to improve our financial situation, but it will help us achieve peace, and leave our protected if something happens to us family. We should always strive to have insurance, either life insurance, health insurance, accident insurance, fire, theft, or any other insurance that gives us confidence.