Clipping of news on Brazilian Culture, Law and Citizenship
02.10.2015
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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The answer to many of the financial issues is not as simple as it may seem.
There are many variables, choices and potential consequences for many situations that, in many cases, have a somewhat frustrating answer: it depends.
Researchers have shattered the illusion que having more money makes you happier.
But you will not here any response of this kind, a financial advice on the fence.
Then on to list eight financial truths to apply in every situation.
These truths have the power to transform your financial life - if you make good use of them.
1. Money does not buy happiness
Experts launched in us the illusion that having more money is the happiest person.
Something like a monthly salary of $ 9000 would be ideal. This based on a national average that takes into account where you live. In larger places such as in Rio and São Paulo, happiness costs more.
With a monthly salary of $ 9000 you can pay for a comfortable residence, have a good car, eating well, traveling from time to time and still save for the future.
If you earn 20% more, that's fantastic, but it is not likely to be 20% happier.
In other words, money can surely ensure comfort and safety. But once you have a moderate stability in income, have more will not make you more and more happy.
The level of happiness of the people does not depend, therefore, a number on the bench. Most people have a happiness thermostat that does not drastically changes with income, no matter how much they have in the current account.
The answer to many of the financial issues is not as simple as it may seem.
2. His power to make money is its most valuable feature
Since your earning power trumps everything, you need to protect it like a junkyard dog. © Provided by Business Insider
You can have a fortune in savings, but their ability to make more money is what ultimately allows you to build equity. Your financial life will stagnate completely if you can not increase the rent.
As his power to make money is more important than anything, it needs to protect you as a watchdog. An insurance can be a good idea to ensure your income in the event of a disabling accident in their productive period.
The largest insurers have plans to suit your profile.
Be in good shape, both physically and mentally, it allows you to have an excellent performance at it and gain according to the value it produces.
Take care of your health as well as money, eat right, avoid sugar and exercise. Sleep well, rest and ensure a happier, more productive lives for longer.
3. Value your time
Before you reach for your credit card, the some quick math and divide your hourly after-tax wage into the price of the shoes. © Provided by Business Insider before you reach for your credit card, the some quick math and divide your after-tax hourly wage into the price of the shoes.
Often we lose money by not taking into account the cost of time.
For example, let's say you're a graphic designer who earns $ 50 and you see a beautiful pair of sneakers that costs $ 400. Ideally, before you whip out the credit card, you do a quick calculation of how much this will cost in time.
For example, the average of its costs is 25%. This means that for every hour you work, can have R $ 37.50. If you divide the US $ 400 a R $ 37.50 per hour will see that you must work at least 10 hours to pay for tennis. That is, you need to have really enjoyed the tennis or let go the idea of buying them.
Calculate the value of your time is a powerful way to really understand how much things cost. If you receive a salary, there is a simple way to calculate how much your time: Take the last three zeros from your annual salary and divide that number by two.
For example, if your salary per year is $ 60,000, take the three zeros, is R $ 60, then divide by two. You earn about R $ 30 per hour (out what is deducted from tax). As the sum of all taxes is something like 40%, you earn approximately R $ 18 per hour.
Calculate the amount you earn per hour is not only useful when making purchasing choices, it is good time to hire someone as well. If you have money to hire people to housework and can pay them less than you earn per hour worked, it makes sense to pay for the service.
4. You need to spend less than it receives
Without discretionary income, you simply do not have the ability to save and invest, at least not without going into debt Also. © Provided by Business Insider without discretionary income, you simply do not have the ability to save and invest, at least Also not without going into debt.
The only way forward financially is to ensure that the wages on. This balance of what you earn after discounting their essential expenses is called surplus, money that goes more than what comes out.
Without a surplus you just do not have the capacity to save and invest, they end up owing the bank. Living in the income limit is very dangerous, especially in a country where interest rates and bank spreads are the highest in the world.
Living in debt or simply paying all the bills are financially insecure. If your income is not excellent, you need to make sacrifices now in order to enjoy the comfort tomorrow.
Cut their wasteful spending and always review your priorities. Save. Do remain forever.
5. You'll get more tomorrow investing in yourself today
I highly recommend That You put your savings on autopilot so it happens in the background without you having to think about it or do anything. © Corbis I highly recommend That You put your on autopilot so savings it happens in the background without you having to think about it or do anything.
A great phrase that is the golden rule in personal finance is: invest in yourself before anything else.
It strongly recommends that your finances are on autopilot and they happen without requiring you to do something or think of something. Contributions to company pension plans work very well because the contributions happen without you having to do anything directly from paycheck to the bottom and you do not even have a chance to spend before.
Automatic savings deposits also work the same way. No matter if it is just a small contribution each month will make an interesting cake ahead.
6. Your financial past is irrelevant
Make Decisions and move forward based on what's best for your future. © REX Features Make Decisions and move forward based on what's best for your future.
In business, a charge on which you have incurred, and has no way to recover is called "sunk cost". The term comes from the oil industry, where you buried resources to extract oil and could not find anything. What to do then, trying to follow in the same hole or go prospecting elsewhere?
Both companies and people need to make their decisions focused on the future, not thinking about what went wrong in the past.
We all have our sunk costs we would like to recover, sloppy investments, misleading purchases that did not need or unexpected expenses. Do not brood over these things. It leads nowhere is feeling bad and remorseful.
Make your decisions always thinking ahead and not looking in the rearview mirror.
7. Make earlier investments turbine financial success
It is not always easy; but it can make the difference between poverty and comfort in the future © Provided by Business Insider It is not always easy.; but it can make the difference between poverty and comfort in the future.
One of the most important financial lessons to learn is to invest early is magical. It is not always easy, but it can make the difference between being poor or live a comfortable life.
The longer you have to make investments and allow them to have income, the less you will need to apply to reach your goal. For example, if you want to retire with the sum of R$ 2 million you need to invest about R$ 300 a month beginning at age 20. Adding income from investments, something out of his pocket as R$ 300 thousand.
But if you start investing at age 40 only, will take at least a R$ 3200 per month, or at least R $ 800 thousand in total. The sooner you start investing, the cheaper it becomes the future.
So do not start to plan and save too late. Start with the habit of investing a minimum of 10% to 15% of your gross income for the long term able to get a good income with fixed income or actions.
Your investment is long term, but it's never too early to start. Start small, but start now.
8. More gives even more of the same
If you're not making slow, steady progress to Improve your financial life and build wealth, you may need to radically rethink your strategy. © Provided by Business Insider If you're not making slow, steady progress to Improve your financial life and build wealth, you may need to radically rethink your strategy.
Do the same things will always result in you always have the same results. In other words, always making the wrong choices will always end the same problems.
If you are not in a slow progress, however gradual of their income, build assets, and transform needs to rethink its strategy. Try something different like moving to a smaller house or apartment, have a more modest car, get a job that pays better or still do a freelance job to earn extra income.
Their success comes from your choices, your choices may be to improve or waste time on video games and watching TV. Consider applying his spare time on something more productive, like reading a book and study, build a professional network wider or undertake.
Successful people are not smarter or luckier. They only use their time more efficiently and make better choices than average.
Think carefully about the application of your time can take you closer to your goals. Be courageous and build your way to success. Will be proud to get there.
Source: MSN
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This article was translated by an automatic translation system, and was therefore not reviewed by people.