What does money mean to you? Is it a way to accomplish the planned or is it your life goal?
Finding the best way to manage your resources is not one of the simplest tasks. In Brazil, just over 4% of the population does financial planning, adapting income and expenses to the respective personal or family goals. In other countries, this percentage reaches an incredible 93% in the United States and exceeds 80% in Japan.
With small attitudes and the right financial product, it is possible to make resources work in favor of our plans and dreams. Building, protecting and maintaining financial assets does not mean giving up taking advantage of “now”, but being aware that investing brings us much closer to our goals at all stages of life.
This planning is simpler than you think, but it requires three main pillars.
1- Set personal goals: How would you like to build your life and make your dreams come true?
We all have countless plans and dreams and, in order to realize them, we need to make choices, knowing where we are going and what we want. As the popular saying goes, “If we don’t know where we’re going, any path will do.” See the example below:
After a clear vision of the objectives and deadlines for achievement, the second factor in financial management is to know the products appropriate to your risk profile. It is common for everyone to wait for the ideal, profitability, security and liquidity together. But it is necessary to recognize that having these three factors in a single investment is not possible. You must make a commitment to reach your personal goals and plan the time you can wait. The longer the term, the more risks we can take while waiting for results.
2- Know the right products, balancing Profitability, Security and Liquidity
For example, before carrying out the acquisition of a good as a property, one must ask whether how to do it: in cash or financed? Researching, consulting experts on the subject is essential. Currently, real estate financing is a great option to make that dream come true.
3- Spend less than what is generated from your revenue!
In order to start investing today and make an adequate financial management, the most important thing, although quite obvious, is that the expense must necessarily be less than the income. Reduce a small portion of each item of your spending. These savings, taken together, are already used to start an investment portfolio. Some tips already known:
– Have all your expenses recorded in a spreadsheet (there are several models available on the internet);
– Avoid using credit lines such as overdraft and credit card;
– Collect the maturities of your accounts on the same day, right after the salary;
– Attention to small daily expenses, such as the well-known coffee after lunch;
– Make a habit of saving
Finally, more important than investing a lot is always investing. Have discipline and celebrate each of your achievements. The Spanish poet Antonio Machado used to say, “The path is made when walking”.