Most Brazilians live in debt. This is one of the main factors that prevent people from fulfilling their dreams, having a peaceful life and preparing for the future.
It is good to remember that relying only on INSS retirement is not a smart way out and it should only be considered to complement your total income. But how to turn the tables? The first step is to avoid debt.
Discover, from now on, how to take control of your financial life in 6 steps. Check out!
1. Analyze your current financial situation
Record all your income (salaries, commissions, bonuses, etc.) and all personal and household expenses (water, energy, telephone, internet, supermarket, leisure, etc.), as well as long-term debt (car payments) , real estate, furniture, electronics, etc.).
Now cross the information and find out your degree of indebtedness. To do this, subtract the total income from the total expenditure and you will have an idea of how your financial life is doing. This calculation can be done considering the periods of a month, a semester and / or a year.
2. Cut superfluous expenses
Now is the time to take a closer look at your expenses. Remember that the aim is to reduce them without harming your current standard of living so much. This is possible with a few simple measures. For example, if you go out every weekend, skip one, leaving a weekend yes and another no.
Also, always do some research before you buy anything. The price difference is large from one location to another and can help you save good money without having to stop buying what you need. Take advantage of buying club discounts in the process.
Always be attentive to each of your expenses, always considering the possibility of cutting them definitively or reducing waste to avoid debts.
3. Increase your revenue
Qualify to be promoted and have a salary increase. If you earn commission or bonus for productivity, adopt strategies to increase your results. The company will value your effort and facilitate your promotion.
Also work in your spare time selling products or services to those who need them. For example, if you are good at something, explore those skills and earn extra money from them.
4. Accumulate money
When you reach a level where revenues far exceed expenses, it is time to add the surplus. Just because there is more money left does not mean that you should spend it. Ideally, you should maintain your standard of living and accumulate leftovers. Savings to start is fine.
5. Make investments
If you leave the accumulated money at home, inflation will erode your purchasing power, devaluing it. Savings offer a replacement for this devaluation, but nothing more.
Ideally, in order to make money work for you, it yields earnings greater than savings and only fixed income, direct treasury, fixed income funds, letters of credit, and some others can offer good income with security and low risk. Their difference is that the money is retained for a specified period.
That is why it is important that you divide your investments between these modalities and also savings, in order to have an easily accessible reserve when you need it. Study more about the modalities and invest with strategy.
6. Make your dreams come true
Whether to invest or to live, buying a property can be the fulfillment of a big dream. After all, who doesn’t want to leave their rent and have their own house or increase their monthly income so they don’t have to work anymore?
Take advantage of the financing opportunities that are emerging and purchase your house or apartment without compromising your investments. You can use the monthly income you receive to pay the installments without changing the amounts you have invested.
As you can see, avoiding debt is not difficult. And the best part is that you can turn the tide and become a financially independent person by following these tips.
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