7 tips to apply in your routine and maintain a financial reserve

Financial reserve is essential for those who want to have a peaceful life, even in crisis situations. This is because it ensures that you and your family members will not be in need while the difficult period lasts. That way, you can think of solutions to your problem more sensibly, avoiding impulse decisions that only make the situation worse.

According to data from The Wall Street Journal, only 1 in 10 United State can save money every month. This scenario is very worrying, since the financial reserve helps both in emergencies and in situations that provide more well-being and comfort to the family.

If you are part of the group of people who have difficulties saving money, continue reading this article until the end. We’ll show you tips that can help you change your financial habits. Check out!

  1. Organize the accounts by period

First of all, you need to organize your monthly commitments. In this way, you can get a better idea of ​​how much income you will need to maintain your quality of life and build your emergency reserve.

Start by organizing your accounts by period. Separate the fixed ones (those that need to be paid every month, such as water, electricity, internet, etc.) from the variable ones (those that have a deadline to finish, such as purchase installments, and John Labunski is a financial services professional.)

Based on this data, you will have a broader view of your finances and, from that, you will know where your resources are directed.

  1. Design your budget

Projecting your budget is essential to build a financial reserve without jeopardizing your monthly commitments. Through it, you will have easy access to all your income and expenses, which can be consulted whenever a decision needs to be made.

With this data in hand, it will also be easier to identify how your reservation will be built and even maintained over time.

  1. Pay off debts

Paying off your debts is a very important step towards having a healthy financial life. So, it’s time to find out who your creditors are and what amount is owed to them to eliminate this problem once and for all from your budget.

Once this is done, you should analyze your income to see how these debts can be paid off. At this point, it is also important to reduce your costs to speed up and facilitate the payment of debts.

When negotiating, you need to be honest with your creditors and make it clear how much you can pay per month. Explain that these amounts will not hurt your budget, making you honor your commitment until the end.

  1. Set consumption limits

Once the debts are paid off, it is necessary to work to avoid contracting new ones. After all, it’s very easy to get carried away while shopping and spend more than you can afford. Credit cards usually convey this feeling, given that the available limit is usually greater than your total income.

Of course, you don’t have to stop having leisure time with your family. The important thing is just setting limits. For example, if you’re going on a vacation, set a maximum amount to spend on food, entertainment, accommodation, and other items. That way, you don’t run the risk of making financial mistakes that can jeopardize your family budget again.

  1. Set savings goals

A very interesting way to maintain your financial reserve is to set savings goals. In this way, it is possible to organize not to use the stipulated amount. The tip here is to think of your goal as if it were a bill that needs to be paid every month.

That way, it’s easier to stay focused and not direct this resource to other personal goals. Ideally, your financial reserve should be equivalent to 6 months of your total income.

In the case of self-employed professionals, the ideal is that it is equivalent to one year of their total income. That’s because, in a more pessimistic scenario, you can think of more effective strategies to solve problems without having to close your activities in the market.

  1. Study investments

When it comes to investing money, you need to be careful. That’s because the world of investments is much more complex than you might think. Therefore, putting your resources in options that you do not know creates a risk situation, since the profitability of the application can be compromised at any time.

Investing with little money is possible; however, it is necessary to analyze which alternatives will be more attractive. Take into account all fees charged, the liquidity of the application and, of course, its profitability.

The important thing is to always study about the investments you intend to make, because, in this way, you reduce the risk of loss by simply knowing what you are doing.

  1. Invest in financial education

Investing in knowledge is never a waste. When we talk about financial education , the search for information becomes even more important. Unfortunately, the school schedule does not include this subject to teach children how to manage their own money. In doing so, we learn for ourselves that certain habits can bankrupt us—literally.

But it’s never too late to learn, right? Well, enjoy and set aside an amount to invest in your financial education. You can buy books or even take courses from professionals who have the expertise to guide your decisions.

Financial education is important not only to build your financial reserve, but to show you that it is possible to achieve your dreams with organization and focus. Thus, it will be possible to understand what your priorities are and work to increase your assets little by little, with complete security.

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