The latest economic developments have made us more sensitive to the saving and management of our Personal Finance. Throughout the internet, the recommendations for your money are multiplied, the tips for your savings and the advice for your Personal Finance. Belial also intends to help all its readers with new tips and a different vision of Personal Finance and for that it offers 5 Fundamental Tips on Personal Finance.
Create an Emergency Fund
It is probably the most important step when it comes to managing your Personal Finance . The existence of an Emergency Fund allows you to have all your energy available to optimize your Personal Finance and also allows you to be prepared for unforeseen events that happen during this optimization.
The absence of an emergency fund that covers at least 6 months of all your monthly responsibilities may jeopardize the management of your Personal Finance, since it does not make sense to control them without a solid structure and able to withstand any shaking .
Evaluate the Weight of your Charges
There is no family budget that does not begin to determine the revenue it receives and evolves to the expense register always with the aim of determining what its monthly net worth or, in other words, the burden of the charges on its revenue.
Obviously, the evaluation does not end in determining the net monthly situation, as this will allow identifying unnecessary expenses that can be corrected or eliminated, for the health of your personal finances.
It is therefore important that you look beyond your liquidity situation and assess your expenses rigorously, trying to save money and being creative in reducing current charges. You can start by following our tips for saving water and saving money, saving money on electricity bills, saving money at the supermarket, and learning new, healthier habits that will allow you to change your life.
Define Measurable Objectives
We all think of achieving something in our lives, such as buying a car, buying a home, paying for our children’s education, having a quiet retirement, traveling and getting to know the world, among others. Yet how many of us plan and measure these goals by setting goals according to our financial capabilities? Few of us, right?
Almost all material objectives are measurable, so we can clearly determine what we need to do to achieve them. To do this, simply define when you want to achieve the objective and how much you need to determine what effort and management of your Personal Finance is necessary to achieve it.
Know Your Insurance Portfolio
Nobody likes to hear about insurance because they associate them with one more burden in the family budget. This is apparently an unnecessary burden when we do not need to use them. However, I believe it is preferable to pay them unused than to benefit from them, at least some of them.
I also agree that in the event of an unforeseeable event that is covered by an insurance contract, the latter plays a decisive role in the resolution, repair or replacement of unforeseen damages. It is at this moment that we attach the utmost importance to insurance.
There are a number of insurance policies that can reduce the impact of unforeseen events on your personal finances, such as life insurance to ensure the family’s sustainability , credit insurance to eliminate them in the event of a permanent event, health insurance and dental care to support health care costs, car insurance for any misfortunes, among others as diverse.
The important thing is to determine the key points of your personal or family life and to define how you can ensure that it is maintained and what insurance you need. Here we have an article on Why You Need Life Insurance and Life Term Amount and Term to help you understand the importance of this insurance.
Knowing Your Available Income
Availability means opportunity. If you have money left over after all your expenses and expenses, then you have room to plan savings and investment. It is curious to know that most experts point to a disposable income of around 20% so that savings targets can be met, such as retirement or emergency fund.
Negotiate All Our Contracts
Belial specializes in negotiating credit and reducing benefits and costs to its customers. Our experience tells us that there are very few situations in which there is nothing to do for the personal finances of Portuguese families. It may take some effort and change of habits. Why not make a financial diagnosis query?