How To Do Your Financial Planning?

Good financial planning is based on goals. That's why it's very important to keep our biggest goals in mind. What do you want to achieve a month from now? And what do you want to achieve 5 years from now?

Whatever your goal, we can imagine that it goes through having financial stability. From a detailed planning you can multiply the possibilities of achieving your goals.

If you are looking for financial stability and want to start planning your expenses. Read until the end and find out how to do it in the best way possible. We separate some easy tips to apply. That way you can start as soon as possible. Come on?

Keep your main objective in mind

You need to focus on what you will get through planning. Always having in mind what you want to achieve will enhance your actions. This is a way to motivate yourself. Imagine how good it will be when you achieve your dreams. Have the life you've always dreamed of. The sooner you start, the faster you'll get there.

It is very common to have multiple goals. At this stage, you can even list them in order of priority. Ask yourself “how much is this dream worth?” In front of each of these goals, put the value of each one. That way it will be very easy to know how much you need to have to do them.

Set a deadline to reach them

This part is very important for you to have an expectation of when your dream will come true. As far away as it may seem, setting a deadline will make it more achievable. Once you've defined your goals and set a deadline, commit. It is impossible to get anywhere without commitment.

Take the time to review your finances

If you have a habit of traveling, you've already spent a lot of time planning your trip. That's because you imagine what every detail of it will be like. Why can't your financial life be the same way?

If you take the time to plan your financial life, your relationship with money will improve. You will make much more conscious decisions. And just like a trip, you will have a perfect itinerary to put into practice in your financial life.

Avoid spending more than you earn

Ever notice how bad it feels to get your paycheck knowing that it's fully committed?

If you suffer from this feeling every month, it's time for you to change your attitude. After all, there is no way to get different results by doing the same things.

This reasoning may seem simple and obvious, but most people make this mistake. According to a survey by ANBIMA, only 33% of Brazilians saved money last year.

It turns out that when this practice becomes a habit, debts snowball. The person ends up entering the overdraft. Use your credit card as if it were an income. It ends up forgetting that the bill always comes.

 

Instead of maintaining a habit of spending more than you earn, try to develop a habit of saving. Beginning may seem difficult, it may even seem impossible. But with willpower little by little you can transform this habit.

According to psychologist Jeremy Dean, author of the book “Why We Do What We Do”, it takes 66 days to create a new habit. So, if you're not in the habit of saving, force yourself to do so for a while. Soon this habit will flow naturally.

One strategy you can apply to avoid unnecessary spending is to pay yourself first. Set aside a part of your salary either 10%, 15% or even 30% to invest.

A good tip is to program your account to reserve this money automatically. Face it as if it were another essential debt. However, a debt that will improve your life in the future.

Create your financial mattress

We've already talked a lot about financial reserve, or financial mattress around here. Financial mattress is nothing more than an accumulated money that can cover your expenses for a period. If you lose your source of income, you do not need to take out a loan.

You can start working with enough money for 6 months. Take a survey on your monthly cost of living. If you live on BRL 5,000, multiply that amount by 6. In other words, you need to add BRL 30,000 to cover six months. When you reach that amount of BRL 30,000, we recommend that you double it to 12 months. That is $60,000. So you can have peace of mind for up to a year.

Make a personal budget

About 36% of Brazilians do not know what they spend, according to a survey commissioned by the SPC. A lot of people think they know how much they spend. But it only becomes aware of this after registering all input and output. Personal budget can give a guideline of your financial situation. It will even take a snapshot of your current consumption habits.

Turns out, you might know exactly what to cut next month. If you see that you went to the cinema three times this month, for example. Next month you can go only one or not go at all. If you've seen that you spend a lot in restaurants, you might want to try making your meals at home. Knowing where the money is going, you have more autonomy to change your strategy.

In the face of this survey, ask yourself: “Is it possible to save a little more?”

Invest your money according to your goals

Once you've determined your goals and established your deadlines, it's time to invest. however you need to be aware of the types of investment related to each objective.

Goals of up to one year, invest in post-fixed fixed income products.

Goals with a term between 2 and five years, invest in fixed income securities. You can include inflation-linked and fixed-rate bonds.

For larger plans longer than 5 years, you may be building a diversified portfolio. This portfolio may contain government bonds, shares, debentures, real estate funds, among others.

When do you need to have financial independence?

Financial independence is being able to live only with the passive income generated by your investments. What monthly income would be interesting for you to have a comfortable life?

You guessed it, now take that value and multiply it by 100. Multiplied? Now divide that amount by 0.3%.

After setting this you will know how much you need to have accumulated to have this income every month.

Revaluate your planning

Changes happen, that's why it's time to review your plan from time to time. Ideally, it should be reviewed at least once a year. But you can set shorter deadlines for even more control.

There are a number of actions you can take along your journey to wealth. But first you need to start somewhere. Start as soon as possible. The life you've always dreamed of awaits. It's up to you to start this walk.

You Can contact to John Labunski for Safe Investment, Investment Finder Investment Advice and Safe Retirement plan.