7 tips to manage your finances
It is always possible to reach your financial goals, no matter what your income is low, medium or high.
Each of us has different financial goals, whether buying a car, a house, send our kids to a good college, pay our bills, go on vacation or saving for our old age. Regardless of your age, you can begin today to rethink your financial goals and create a plan to achieve them.
The following tips can help you better understand money management and control of your finances:
What are my financial goals? Most people who have lots of money, not obtained from the overnight. These people are well aware of their financial goals and worked hard to achieve them. Very important to divide your goals, short, medium and long term. Please do not just think of these goals write them today! An example of short-term goals, you may be saving for Christmas gifts, an example of long-term goals can be save to buy a home.
Create a budget. Understand you spend your money daily, only if you know about your expenses can determine how to distribute it. Do the following: Write as are your monthly income. Then write each of your monthly expenses. By identifying each of your expenses, we will take the total income and subtract the total expenditure. If you have money in your favor you meet the financial first commandment “Do not spend more than you earn.” If your monthly income is less than your expenses, (you spend more than you earn!, Alert!), It is time to reflect and make decisions. Your priority should be to identify expenses that can be reduced or eliminated, you should establish a monthly saving of 10% of your income. We recommend using applications such as that offered by www.mint.com or just write in a notebook every expense you incur, including small expenses such as drinks or taxis.
The savings are a priority. Save part of your income (ideally 10%), the goal is to create a savings discipline and make it a priority in your lifestyle. These savings can handle in your savings account, through the saving plan of the company you work through your financial advisor. Looking for great rates, means all fees and costs associated with the account, if your income increases, your savings increase to the same extent. Understand that the higher profitability, greater risk of losing your capital. In the earlier you start your savings, increased profits will eventually. Learn about compound interest, interest that you can earn interest on your savings interest.
Manages credit wisely. Credits can help you achieve your long-term goals (house, car or education). Understand the interest rates associated with these loans. Pay to cover your living expenses because you spend more than you earn, leads most people to financial problems. Before using a credit card for cash advances, think you could expect to pay up to double because of the high interest rates associated with these. If you have credit card debt, always pay more than the minimum payment. For example, it would take over 60 years to pay off $ 5,000 in credit card debt if you only pay the minimum monthly payment. Would pay nearly $ 16,000 in interest (assuming an interest rate of 14% per annum and a minimum payment of 1.5% of the balance).
Protect your credit history. Lenders use credit reports to decide to lend money. Insurance companies, real estate companies and even employers also check credit report. A report showing defaults on payments and / or poor credit history can mean not getting credit or paying high interest rates. By law you can request a free annual credit report you. Check it out and any revision is important that communicate.
Take control. Having a reliable source of information can help you take control of your finances. When you need information, make sure it’s a reliable source. Know with whom you do business, ask for references, understand each of the charges and costs associated with a loan or investment, ask who regulates them.
Learn more about money and your finances. There’s always a lot to learn about money and managing your finances. Sign up to Inverpedia database, to receive practical advice and recommendations. Look for organizations in your community to help you obtain your goals fiancieras, you can find non-profit organizations, libraries, banks, religious organizations, virtual communities among others.