We all dream of having financial stability, but will it be easy to achieve it? It is not an easy task, but you can have some strategies to help you better manage your money.
It is wise to take precautions in time before completely losing control, for this, we invite you to know 5 tips that will double the money of your business, without much complication and with easy tools.
✔ 1- Keep track of your daily expenses.
To put this tip into practice, you must specify your priorities of those expenses that do not represent something indispensable, that is, that will not affect us if we stop doing it. To do this, it is necessary to:
-✅ Separate fixed expenses from variable expenses.
Keeping track of your funds on a daily, weekly or monthly basis is of vital importance, dividing your obligations from your personal expenses will help you enjoy more financial stability.
Make sure you have under control your fixed payments such as: water, electricity, housing, transportation and food, since this will benefit the balance of your money.
-✅ Write down every movement
You must be very organized, keep everything in writing, either in a personal agenda, an Excel format or a specialized application for this purpose. It is necessary, to keep this control and not leave it only to memory, since it could be very helpful when constantly reviewing your finances as many times as necessary.
-✅ Establish a budget
Once you have broken down your expenses you need to make adjustments, you must be clear about what you will spend during the month, exceeding it could lead to complications.
You need to set your usual income and divide it into parts such as 50% in fixed expenses and the other 50% should be divided into variable expenses and savings percentage, this will lead you to have a solid foundation of your income both in the medium and long term. Remember not to accede to the temptation to buy the unnecessary or it would be the end of you.
✔ 2 – Calculate income:
✅ Once you are clear on how to reduce expenses be sure to discern when your outgoings are greater than your income, you should not consume more than you earn.
Identify if you have a surplus which will be your savings, no matter how much it is, little or much, the important thing is that you can count month to month with that surplus without feeling the need to touch it.
Set up an emergency fund little by little, this could help you face unforeseen events for three or six months if you know how to calculate your costs well.
✔ 3 – Open a savings account:
This is one of the biggest economic challenges, there is nothing better than seeing your income grow little by little after seeing all your fixed expenses covered.
A savings account is a bank account that allows you to save the extra money from your income, these generate income according to the bank’s policies, allows you to have certain benefits such as a debit card in which you can have your money at the time you want.
It should be noted that you do not exactly need banks to have your savings bank, you could also use a piggy bank and even exchange it for foreign currency to avoid using it. The important thing is to have an emergency fund that frees you from future indebtedness.
4 – Set yourself financial goals
Study the investment opportunity in which you can dedicate part of your savings can be an option to grow your income, think of a business that will lead you to multiply your finances is profitable, but everything will depend on the income of each month and the time you have dedicated to save money.
There are many reasons why we can not leave our money still, one of them is the annual inflation, if we stop managing money and we dedicate ourselves only to save we will be losing the purchasing power of our capital.
It is necessary to make a thorough analysis for investment projects, you need to invest your assets in different goals, you should not put all your eggs in the same basket, because if they break you would lose everything.
✔ 5 – Do not get into debt.
Getting into debt would be the worst way to manage your money, investing in businesses that are outside your average budget would be a serious mistake, so you should avoid it, do not get carried away by mirages when playing with your capital.
In case you already have debts to pay off, cancel them, your focus is on generating resources that help multiply your capital not decapitalize it, loans are decisions that should be taken with caution, otherwise your savings goals will be useless at the time of charging interest or commissions.
Debts have to be your last alternative, they should only be acquired for a good reason, in case it is impossible for you to give them up you should only choose easy payment methods that do not exceed 30% of your income or else you will be knocked out by the great wave of interests.
If you already have a brief idea of what you should and should not do with your finances, now you need to put into practice the 6 methods that strengthen these 5 tips.
Managing our assets is a task that we are not taught from an early age, but if we learn it thoroughly, no matter how old we are, we can give ourselves the financial stability we desire so much. To do this we need to apply the Harv Eker savings method.
This technique is based on dividing your capital in installments of 6 parts with a 10%, the point of this discipline is to put your money to work without having to touch it for a long time.
Methods to better manage your money
Before starting it is important to clarify that each of these disciplines must become new habits, if you get used to apply them whether in little or a lot of money you will surely see a complete change in your finances.
You don’t necessarily have to have a bank account to better manage your money, you can also organize yourself with 6 envelopes, piggy banks, piggy banks or any other deposit where you can divide your capital, but let’s stop beating around the bush and get down to business!
Fixed expenses or basic needs account (50%)
This is the obligatory account of our finances since we cannot leave them uncovered, they are the expenses that allow us to enjoy a solid lifestyle, such as housing, health, water, electricity, internet, telephone and food.
There are many people who have set aside a separate percentage only for health, because it is an expense that is not always constant but when it becomes present it tries to wipe out all our capital, for that reason many prefer to be prepared for this moment.
Financial Independence Account (10%)
This will be the account that will allow you to multiply your money without the need to resort to debt or credit, through it you can create your financial assets such as stocks, properties or simply create other parallel projects that will generate more income.
It is worth mentioning that this account would be more profitable if you were forced to open it in the bank, because it is a place where we are forced to deposit always and without any temptation to make use of it.
Family savings account (10%)
This account should always be projected in the long term, in view that it will be the balance that will give liquidity to future eventualities, in case this capital is invested it should put liquidity before profitability.
Formation account (10%)
We always need capital to continue training our capabilities, there is an old saying that “we are the most important asset we have”.
Investing in us represents a reciprocal effect in our finances, for that reason it is necessary to have a good part to strengthen the capacities that later will be the tools of financial management that will increase our capital.
Donation account: (10%)
Undoubtedly this is one of the accounts that will give you more happiness, it is important to contribute to people, foundations and / or organizations dedicated to helping the needy, it is wise to return part of that abundance that you have managed, this is a fundamental key that helps the money cycle.
Leisure account or desires (10 %)
For sure this will be the account in which you will be more motivated to save, since it is the one we enjoy the most, this account is in charge of satisfying our desires to go out to eat, go to the beach, the movies, the theater or simply take the little ones of the house to the amusement park to spend a special day, something that pleases us very much.
If we manage to keep the entertainment account under control, we will surely see the success of our finances very close.
In short, the key to this method lies in planning and making it a habit to manage your finances.
You have to discard that old myth of not managing your money better because it is little or because you will deprive yourself of rich freedoms, if you think this way you are in a complete mistake.
There is no better financial freedom than when you have absolute control of it, and if you start from the little, imagine the results of the countless, it will be the expected step that will take you to obtain the desires that you always saw so unattainable.
“Being rich is not a matter of luck, it’s about controlling the lifestyle you lead, and the focus you set your goals”, so don’t think about it anymore and run now for your dreams.
Keep browsing invanguardiastore.com and continue to learn about the financial management tools that will make your ambitions tangible.