Personal finance can be a very complicated issue, the vast majority of people have problems (large and small) throughout their lives, not precisely because they earn little, but because many times finances are a complete mess. It is for this reason that today we present 5 things you should do to improve your finances, so that, from now on, debts are in the past, savings always in sight and investment is part of your goals.
Infallible tips to improve your finances
The next five more points are very important and more than the basis of an ideal financial system, it will help you to follow them to the letter and little by little you will see how your finances are improving and taking better course.
1. Save everything you can
Try to establish an amount to save every month or every fortnight depending on the frequency of payment you have in your employment. We suggest you save between 10 and 30% of your total personal income.
As a recommendation, always deposit the savings money before all the expenses you are going to make, to have control over what you plan to save.
2. Build an emergency mattress
We all know that an unplanned expense with an emergency can greatly reduce your economy. So that this does not happen we recommend an emergency mattress. This is the typical guardadito, which you can use to pay those unplanned expenses and that you did not contemplate within your monthly payment and that may appear in your day to day.
By having a mattress for emergencies you can avoid falling into debt. So take it as a priority.
3. Pay what you owe
Debts can be a large block of concrete that you carry on your back and that if in the long run they can hurt you and above all, affect your economy severely.
To be able to liquidate it, simply start by making a list of all the debts you have, including all credit cards, car credits, the mortgage, any educational credit and all those debts that you could have accumulated. Do not forget to take into account the current balance of each one as well as their minimum payment, the payment date, and the interest rate, all this will be useful to know which debt to settle first.
After making the above list, check your budget to determine how much money you have. After this, you owe the payments of each of the debts and from this you can establish the following settlement strategies:
- Pay debts with higher interest rates first
- Always avoid the minimum payment
- Stop shopping on credit so you don’t increase debt
4. Don’t let your debts grow
Now that you find yourself paying your debts, don’t forget to check your credit history frequently. The credit bureau or credit history is a story of you and the way you pay and consume all your credits, it depends on other banks to finance you in the future.
To do this, try to:
- Avoid arrears
- Always pay an amount of at least double the minimum payment
5. Always make a monthly budget
If you really want to improve your personal finances, the ideal thing is that you dedicate a few minutes each week to make a budget. You can include a list of all the expenses that are necessary and separate them from those that are optional. It also makes a list of all your income, which you must later subtract from your list of expenses.
In this way you can have adequate control of all the monthly expenses you have, in addition to helping you avoid borrowing and spending on unnecessary things.
It is not so difficult to maintain healthy finances, it is a matter of giving us some time to reflect to accommodate and create a strategy that fits the budget we have created and above all, that helps us not to acquire debts .