Clipping of news on Brazilian Culture, Law and Citizenship
05/05/2016
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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Columnist listed nine red flags about the financial life you should not commit
Source: InfoMoney
Red card - Bloomberg
SAO PAULO - Make a lot of money does not necessarily mean that you will be rich. At the end of the day, it depends more on how much you save and invest to accumulate wealth than the digits on the payslip. Thus, the site Business Insider columnist Kathleen Elkins listed 9 signs that you are not saving enough money and harming your financial life.
1 - You can barely pay your bills
Check the profitability of their investments
You are only paying your obligations every month? This is known as "living paycheck to paycheck" and means it will be almost impossible to build a good savings. There are two options to resolve this problem: make more, either with a second job or asking for a raise, or even spending with changes in lifestyle, for example.
2 - You say to yourself that will save more when you win more
This is one of the lies about the most common money that people say. The Patrice C. Washington author comments that the way you handle $ 100 will be the same that will deal with $ 100,000. "You are the same person, with the same attitude, same behaviors and the same habits," he says.
3 - You've got to invest for retirement
Saving for retirement can not wait, no matter how far it is. If you are leaving aside, should not be alone, as according to research in the US, one third of Americans saved nothing for retirement so far. However, experts advise to leave at least 10% of the next salary to ensure a better retirement.
4 - You do not prepare for major purchases
It is important to contribute money to a retirement fund, but can not neglect other major expenses, such as buying a house, a course, a trip or even preparing to have children. Thus, it is important to start by establishing how you want your future and establish goals and objectives to achieve your dreams.
5 - You do not invest
Investing can be considered the most effective way to build wealth and as you get better, because then more will take advantage of compound interest. If you feel you have no money to invest, are not saving enough, says the columnist. And remember that, in Brazil, there are several very cheap and affordable options for the investor, such as Treasury Direct, for example.
6 - You do not have an emergency fund
Establish an emergency fund is one of the most important things you can and should do with your money and should be left out if you have debts with the card to resolve before. The idea of the fund is to protect contingency and have spared him the value of about six salaries.
7 - Do you spend more than 40% of income with your home
A good rule this time is to make a simple account: you can have 29% of its gross income spent on your home, or 41% if you do not have any debt. More than that means you are losing a lot of money you could be saving. To improve, one option would be to consider living in a cheaper area or in a smaller house.
8 - You do not follow your expenses
Many know how much money is coming into the account every month, but you know how much is going out? You know how much you spend eating out, coffee or tours? And chances are that you can cut a lot and save more, says the columnist.
9 - You can only pay the minimum invoice of your credit card
If you can not pay more than the minimum month after month, you are spending too much and going straight to a huge debt, causing it to have very strong difficulty in saving. You should always pay all your card statement not to form a snowball.
Source: InfoMoney
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This article was translated by an automatic translation system, and was therefore not reviewed by people.