What is the financial organization?

Financial organization is a strategy for control, security and financial freedom . As the term itself indicates, it is the organization of the financial aspects of your personal or professional life.

Organizing finances involves controlling expenses, planning them, creating and following budgets, setting goals, forming emergency reserves, among other practices. This way, you maintain a balance between what you earn and what you spend in an intelligent and sustainable way.

This method allows and grants a more peaceful life to achieve your goals and dreams in the short, medium and long term without many worries.

Why should I organize myself financially?

You may have already experienced the situation where you receive your salary and, before you even realize it, the money seems to evaporate. Or, at the end of the month, you find yourself needing to save in every aspect, because there simply isn’t any money left.

Financial organization, when done efficiently, helps you avoid these situations. The first step to building a good relationship with your money is organizing it. And, to get organized, planning is essential .

Imagine having a clear and practical roadmap to guide your financial decisions? With good financial organization, you will be able to manage your expenses, set spending priorities and save money!

Furthermore, it helps you establish achievable financial goals, such as travel , purchasing goods or future investments.

How financial organization helps you save money

The financial organization offers a clear and detailed view of your finances. By tracking and recording your spending, you can identify areas of waste and expense reduction opportunities , saving more money.

Establishing a budget and following a financial spreadsheet is an effective way to maintain control over your money, avoiding impulsive spending and directing resources towards priority objectives, such as savings, investments or paying off debts.

Saving money: tips for maintaining an effective financial organization

Maintaining a financial organization is essential to achieving stability and financial goals. Here are some tips to help with this process!

Record everything!

“All all?” Yes! All information about what you spend and what you receive must be recorded. This is the first step to ensuring good financial organization.

Then, for the expenses part , write down all the fixed costs, such as rent, bills, transportation, food, monthly utilities, etc. And more flexible expenses, such as dinners, events, travel, food delivery, etc.
You know that beautiful dish from the restaurant you ordered at the weekend? It also needs to be included in your expenses, ok?

In addition to these expenses, also fill in a column with the amounts you are investing to achieve a dream, be it a new house, retirement, travel, among others.

And on the other hand, it is essential to write down all entries as well. So, write down your net salary, vouchers and any other form of source of income, if you have one.

Input and output records are essential for keeping detailed control of your finances. This way, you can monitor your cash flow, ensure that your expenses are within budget and avoid unpleasant surprises in the future.

Have objectives and goals

Determine where you want the money to go. It’s very important to be clear about your priorities, so set goals that fit within your budget. No matter what your dreams are, it’s essential to plan to achieve them without falling into excessive debt.

“But, after all, how do I align my goals with my budget?”

Define your short, medium and long-term financial goals , and from there, set a deadline for each of your dreams, making it easier to calculate how much you need to save to achieve each of them.

For example, if you established that you wanted to take a trip worth R$5000.00 in two years, what would be the monthly amount needed to save and reach that amount in 24 months?

With this answer, it becomes simpler to record in your spreadsheet the amount you need to set aside monthly to reach this goal. Furthermore, having a clear objective brings more motivation and responsibility, helping to avoid unnecessary expenses.

Prioritize paying off debt if possible

Establish a plan to pay off your debts and avoid high interest rates. Having debt does not always mean something bad, but it is important to be careful not to exceed your financial capacity.

Use a financial spreadsheet to track your debt repayment progress and visualize the positive impact on your financial situation.

Create an emergency fund

Set aside part of your budget for unforeseen events , ensuring financial security in case of need.

It is recommended that the reservation represents approximately between 6 and 12 months of your current cost of living. Set monthly savings goals and track the growth of your emergency fund over time.

Automate your finances

Automating finances can be a powerful tool for financial organization. Set up automatic bill payments to avoid delays and fines, ensuring all obligations are met on time .

You can also schedule automatic transfers for investments , making sure some of your money is set aside for the future. A simple way to maintain financial discipline.

Study about finance

Seek knowledge about personal finances , investments and savings strategies . Learning and applying financial concepts in your routine, such as calculating interest or evaluating the return on different investments, helps a lot with organization and financial planning.