Clipping of news on Brazilian Culture, Law and Citizenship
04/20/2016
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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Dinheirama
Crisis is the word of the moment, and how to deal with it and control spending at this time are important steps to overcome unscathed (or near) this difficulty. In times like this, it is natural to be hit by a feeling that nothing is going to work and that in time everything will be even worse.
The lack of prospects and pessimism are undoubtedly very bad fellow. To combat these feelings, remember that crises are cyclical (and even worse, sooner or end up passing).
Who is aware of the economic variables and believes there is still time to prepare for the future, regardless of the time, always benefits from moments like this. Thinking of contributing to change your perception of the crisis, prepared 7 key tips to survive (and grow) the crisis.
Reserve money before spending
It is much more difficult to save money when you have spent all or has financial commitments around. So as soon as you receive your salary, separate a part for your emergency reserve and other investment - classical concept of finance known as "pay yourself first."
After achieving the required value for your reservation, continue to use the same tactic to invest. Therefore, book at least 10% of its net income, but do not get stuck with this number, after all gradually you can increase (over the years and their professional development).
Recommended reading: 5 Steps to create your emergency reserve (or reserves)
Plan your spending
Many people already realize the planning of what will spend, saving money for the payment of principal accounts and leaving lower values for trivial expenses. Try this prospect of spending more constant and planned way, knowing how much exactly will spend and how much you can invest for your future.
You should book a few hours of the month to work with their numbers and values. For this you can use a spreadsheet or other tool to control spending; the key is to turn this into a habit.
Recommended reading: Financial Planning Guide for unorganized
Write down your spending
It may seem a silly thing, but note the spending is one of the best ways to save. In the first months, it can be difficult to be able to record all expenses, but after some time the habit will "take revenge" and bring several benefits.
In the previous tip, we talk about the tools that can help you control spending; this item is so important that it deserves to be treated again because create the habit of writing down and work your household budget responsibly is essential to make better consumer decisions - just so you will be able to prioritize the realization of dreams and goals.
Recommended Tool: Download here the best free sheet financial control.
Plan your leisure time
Most of the time, care for the utility bills up is efficient, but when we stop to plan leisure time the lack appears (and comes with full force). The trick is simple: be realistic!
If spending on leisure take an important percentage of their income, it is essential that it is exposed clearly in its controls. So you will be able to make the best attitude to leisure and even when necessary, to encourage spending adjustments to enjoy these moments while doing other important things.
Recommended reading: Financial education: more leisure and happiness in travel and holidays
Beware of Credit
Another important point is the excess credit that many people use, often in order to maintain the standard of living. Besides taking a lot of credit, some people end up using credit lines more expensive, such as credit card and overdraft.
Here the rule is clear (and expensive): if you need every month to seek credit to stay, it's past time to review your budget and promote expenditure cuts. If the values taken represent a serious problem for the budget, choose to negotiate with the bank for a loan at a cheaper line of credit (such as payroll loan or a personal loan) and quite your most expensive debt.
Recommended reading: 3 Things About Credit Cards You Need To Know
Investing is fundamental
There is a huge and clear difference between spending and investing. The investment will bring real benefits in the future, and so some people do not realize its real value today, in the present. The excuse that investing is something for people with high income shows the lack of knowledge and willingness to create a richer and happier future.
Today, fortunately, there are options for those who want to invest safely and good return, even in fixed income. Take a few minutes of your day to learn more details about the Treasury Direct, for example, by watching the video below:
//www.youtube.com/watch?v=52BSMFqC66M
Learn to think in the long run
What dream you want to accomplish? A trip, buying a car or a house? Learn to live with the expectation of getting better benefits ahead. It will be easier to invest and maintain the habit of seeking the best options to see the money grow.
Remember that Brazilians are living more and some important decisions that are critical to our future need to be taken today, now! Who cares still young fondly retirement need smaller contributions and have at their disposal a series of investments, merging with better results fixed income products and variable.
Recommended reading: The power of compound interest on long-term planning
Conclusion
Taking care of finances and control intelligently the month spending is important and an essential habit to achieve dreams and build the concept of wealth.
According to the Greek philosopher Aristotle, "people are divided between those that save as live forever and those who spend as if they were to die tomorrow." It is time to address this matter with balance, making the dreams of today, but without forgetting that tomorrow will come. Thank you and see you next time!
This article was written by Ricardo Pereira.
financial educator, lecturer, Member of Dinheirama and author of "Dinheirama" (Blogbooks), worked at the investment bank Credit Suisse First Boston and edit the Economy section of Dinheirama. Twitter: @RicardoPereira
Source: MSN
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This article was translated by an automatic translation system, and was therefore not reviewed by people.