How to Evaluate Your Finances for the Best

Financial Management for Individuals that need budget, We invite you to grab a pencil, paper, and calculator, sit down, and answer these questions during a break. You can also do it in the morning, before starting the day.

1. When was the last time you created a budget?

Do you know how to make a personal budget? Keeping track of your income and expenses periodically is ideal for keeping track of your finances and knowing the money you need to meet your obligations. Start there.

2. What specific expenses affect your monthly budget?

If your expenses exceed your monthly income, it’s time to think about measures to prevent your finances from getting out of control.

An example: every Sunday, when you meet with your book club, you have coffee and dessert. If you identify that this expense affects your monthly budget, you can bring the dessert from home and only buy the tea.

3. What percentage of your monthly income are you saving?

For better personal finances, it is key to know the importance of savings. For a better personal economy, we suggest that you allocate at least 10% of your income to saving each month so that it becomes another obligation.

How about savings with a payroll deduction or automatic debit from your account? That way, you won’t be tempted to spend it!

4. How much more do you pay per month for the use of your credit card?

Do you use your card for everyday purchases, such as toiletries or medicines? How many installments do you buy with it?

It is important to learn how to use credit cards to your advantage. Remember that this means of payment can make your debt snowball, with interest rates and handling fees. Its use must be conscious, controlled, and, preferably, for emergencies or unforeseen events.

5. Do you know the specific dates you must pay your bills?

When you don’t pay your bills on time, you go into default, and your fixed obligations grow. Keep in mind that failure to comply on the established dates may affect your credit history, making it more difficult for a financial institution to lend you money in the future.

6. How much are the objects that you don’t use and that you keep at home worth?

A sandwich bowl, a rug, a vase from your great-grandmother… You can sell the goods that are no longer useful to you, recover some of the investment, and gain a little cash flow, especially in times when there is a financial downturn or a decrease in income.

7. How much would you save traveling by mass public transport, on your bike, or foot?

Moving sustainably not only protects your pocketbook but also the planet we inhabit. We propose to identify the most effective routes to reach your daily destinations without the need for a car or motorcycle. Who doesn’t benefit from fresh air, exercise, and saving money?

8. Do you have enough money to cover your basic needs for three months?

To provide for emergencies or unforeseen events, an emergency fund is a solution. You can calculate how much your basic needs cost for three months and save that amount in a savings account different from the one you use daily.

9. When and how do you plan to achieve your next goal?

For example, if you want to see the sea, count the months you have left to achieve that goal and calculate the total value of the trip.

If transportation, food, lodging, and other expenses add up to 1 million dollars and there are 8 months left for your trip, you will know that you must save 150 thousand dollars per month.

Strategies to better manage your money
Make a personal budget
Reserve a percentage for fixed expenses

Record your expenses in personal finance apps and virtual savings pockets

Prioritize expenses and self-control methods to avoid unnecessary purchases

Avoid credits and pay the installments of those you have on time