The Best Tips For Good Finances

Having good finances can help you, for example, to invest in the future, to have money available in the event of an emergency, to expand your business or to avoid financial problems in times of crisis.

In this article we will give you some tips so that you can better manage your earnings.

Tips for good finances

It doesn’t matter how much you earn … you can be in debt or “live from day to day” even with enough money. To have good finances, the basis lies in knowing how to manage what we receive (whatever the amount).

These tips can help you to make your personal economy healthy:

1. Learn

When you have some free time on the weekend or on the way to work on the subway, read a book or publication that teaches you how to better handle money.

You will be able to get a good amount of interesting ideas to put into practice. You can also ask people who are in a good situation (not for what they earn, but for how they organize with the money). Do not neglect the possibility of having a financial ” coach ” if necessary.

2. Prioritize

One of the main causes of economic problems in couples or families is that they do not identify which are the main expenses and which are unnecessary. Believe it or not, the latter are the ones that take a good part of the income, especially if they are not monitored.

• When you receive your salary, the first thing you should do is separate what you need to feed yourself and pay the bills.
• The rest you can use to save or invest.

With this very clear, you can even “indulge yourself” every month.

3. Set goals

We would all like to be millionaires, but you have to be a little more precise in your goals. For example, if you want to have good finances to start your own business, buy a house or pay for college for your children, you must act accordingly.

Once you have a defined goal, it will be easier for you to organize yourself and avoid unnecessary expenses.

4. Make a budget

When you have your goals clear and you know what your priorities are, the next step is to set a budget. This should be the first priority in a home because it allows you to monitor expenses and income and think ahead. It is as simple as putting together a file on your computer or writing in a notebook. Whatever is simpler and you can take advantage of it.

The first time it may be a bit boring or tedious, but then you will do it in less time. In addition, you will realize its advantages and you will not want to change the method. Of course: take the trouble to record everything you spend so that there are no problems in the accounts.

5. Look for prices

Another of the techniques to have good finances is to compare prices and services. This not only has to do with work, but also with day-to-day expenses.

If you always go to the same market, you can try to find out others that are more affordable. Look for prices on everything you want to buy, from a product to a service.

• Compare the quality and durability of the items, since many times it is not just choosing the cheapest, but the one that will serve you the longest.
• Make purchases in bulk, take advantage of offers, get promotions. So you will not spend more.

6. Establish a base savings

One of the keys to being able to save is not to set aside a part of the money once everything else has been paid, but the other way around.

First determine how much you will save and then use the rest for your expenses. Of course, this doesn’t mean starving or owing rent, but it does prevent you from using that amount for minor things.

• To get started, save 10% of your income at the time you get paid.
• You can deposit it in a savings account to earn interest.
• Don’t leave them at home, even in a safe, because the temptation can be quite strong.

7. Don’t get into debt

Credit cards are a double-edged sword because, on the one hand, they “save” you, but, on the other, they “sink” you, economically speaking. We do not realize that we are spending more than necessary if we pass a plastic through a machine.

However,  later, when it’s time to pay, we don’t know where to get the money from. And we resort to the famous “minimum payment” that the only thing it causes is more debt (because, of course, it has higher interest).

Therefore, before swiping the card at a store, think carefully about whether it is worth the expense. Otherwise, wait until you have the cash to buy it. Only use this payment method when there is no other option or if the benefit is really interesting.

8. Invest

“Saving is the basis of fortune” indicates a popular saying. But to that we must add something else: investment. It is the next stay to have good finances.

Remember that it is not good to bet everything you have on the same project. Diversification can go a long way so you don’t lose everything.

Consultation on different types of investments (short, medium and long term) and in various sectors (bonds, real estate, stocks, etc.). It would not hurt to work with a financial advisor to explain what the best options are according to your possibilities.