Have you noticed that many dreams involve money for their fulfillment? The path, therefore, includes financial planning. Setting goals When you concretely define a goal, you gain motivation to start planning and put it into practice, with discipline. The path is not easy: it is about giving up some consumption decisions today, to save enough money to achieve what you want.
Results With a little planning, you will be surprised at the results: you will certainly use your money better, reevaluate expenses and think of ways to save. Using your budget to guide you in your spending, you will learn how to save money and how to save money, both for unexpected expenses and to better plan for your future.
Your budget When you have an organized budget spreadsheet, with very complete information about how much you receive each month and how much you spend, it is much easier to understand your financial situation. With your spreadsheet in order and your bills up to date, it’s time to practice saving money. As soon as you receive your salary, set aside about 10% of it to another checking account, and don’t touch this money.
Don’t wait until the month is over for you to save what is left.
Financial planners recommend saving 10% of your income monthly, but it all depends on your reality. Establish this percentage and start as soon as possible. Financial Education Saving money requires effort and the creation of a habit. In the beginning, save this money in a savings account or invest it in some low-risk investment that provides security and liquidity (you can withdraw the money quickly if you need it).
Think about fulfilling short-term dreams first.
This will give you a lot of motivation to cultivate the habit of saving, because you will see quick results. Just look at some examples: “I want to save for a vacation. I have six months for that. Or: “I want to save money to buy a TV”. The important thing is to start by setting goals. Make your dream come true Besides saving money, you must establish your strategy. For example, if you want to buy a car and intend to finance it, always keep some important lessons in mind: The larger the down payment, the better the chances of negotiating prices and the lower the impact of interest on the financing installments. Understand very well the effect of interest on the installments. Compare the cash value with the total amount financed and see the difference. Don’t just look at the amount of the installment, but at the total amount that will be paid for the vehicle. This way you have a clear notion of the effect of interest.
Go slowly: buy a car according to your current needs and income pattern. Don’t make bigger leaps than your pocket can afford. Check if the amount of the financing installment fits in your budget, both today and in a year’s time, in case the negotiated term is very long. Consider, only close the deal when you are sure, and good luck!