7 tips for managing your money

It’s time to find out how to put it together. We have listed some of the main practical tips. Check out!

1. Know all your costs and record them

The first step to starting to control your financial life is to know what your earnings and expenses are, and define where each part of the money will be allocated.

Start by writing down all your fixed costs , such as rent, bills, food, transportation, etc. Write down everything that necessarily needs to be paid each month.

Then, if you have goals such as purchasing a property, a car, a trip, investments or private retirement, set aside a fixed amount within the stipulated period.

Also consider more flexible expenses , such as events, dinners, outings with friends, all “extra” points that may have a more variable value.

And if you’re just starting out and have no idea how much you spend per month on each topic, don’t worry. The ideal is to write everything down in a tool and add them up each month to understand what the average is for each of the categories.

2. Use the 50 30 20 method

The 50 30 20 method is very useful for those just starting out or for those who are looking for new ways to manage money. It gets its name because each number represents a percentage of your net gain in expense sharing. It works like this:

• Reserve 50% of your liquid money for essential expenses (rent, bills, installments, food, etc.)
• 30% for non-essential desires (shopping, leisure, services, etc.)
• 20% for savings, emergency reserves and/or debt payments.

When we talk about “ net gain ” it is because you should only consider the money that actually enters your account. Do not consider gross salaries , as taxes and benefits are deducted. If you have more than one income, your amount is the sum of them.

3. Have short and long-term financial goals and objectives

Using your credit card and investing the money in your account is a great way to make it pay off!

Create goals that are within your budget. Regardless of what your dreams are, they need planning to be achieved without leaving you in debt .

To do this, set a deadline to reach it. For example, if you decided that you want to take a trip worth R$5000.00 in two years , how much do you need to save per month to have that amount in 24 months ?

With this answer, it becomes easier to write down in your spreadsheet how much money you need to set aside to achieve this goal. Furthermore, a clear objective brings more motivation and responsibility to avoid unnecessary expenses .

4. Prioritize paying off debt

If you have financial issues, it’s time to pay them off . After all, to have good financial control, you need to stay up to date with your bills. Write down all the amounts you owe in the spreadsheet and divide goals for them too.

Take advantage of this organization to try to renegotiate debts . Talk to people who know the area for a possible reduction in very high rates and interest rates.

Resolving these issues first is essential and only then start thinking about investments, ok?

5. Use financial control apps

Technology has brought many good and practical things to our daily lives, so we can take advantage!

There are countless cell phone apps that help you keep financial control in the palm of your hands. You can download several of them and test to understand which one is best for you.

6. Pay attention to unnecessary expenses and try to save money

Analyzing the division of expenses and all the information in the financial control spreadsheet , you may come across some expenses that should be avoided.

And, to decide whether they are really unnecessary , you should ask yourself questions like: is it really necessary to order a car via app or can I use public transport? Can I cook more often with the monthly purchases or will I continue ordering delivery? Where can I avoid spending to allocate my money?

7. Be realistic and adapt your standard of living

The last tip for building an efficient financial plan is: adjust your standard of living with your financial reality.

Buy only what you need, create a wish list with a priority order. In other words: don’t take a step bigger than your leg .

Financial education begins with our own awareness. You know where you want to go and what you want to achieve, so stay focused on your goals and keep your bills up to date!