Of course, money is not everything, but the lack of it can cause several difficulties, as well as impair the quality of life and tranquility of those who experience this situation. So if you’re going through this, don’t despair.
To help you get out of a financial crisis by cutting costs, paying off debt, building reserves and investing in investments, we’ve put together a complete step-by-step guide. Let’s go?
1. Organize your finances to start paying off your debts
Write down all your sources of income, that is, the amount that enters your account, regardless of whether you receive it weekly, fortnightly or monthly. If your income is variable (as is the case for self-employed people), register the average received in recent months.
To simplify the process, mark the date of what you intend to receive, describe it to find out what it is and the amounts of receipts.
Then do the withdrawal of accounts payable. Put together a list of all fixed expenses, which are those that appear every month. See some examples:
- rent and condominium fee;
- subscription clubs (books, magazines, tools, wines and clothes);
- recurring taxes (IPTU and monthly MEI guide);
- tuition fees for the gym, course, college etc;
- monthly expenses with consortia , loans and financing;
- health and dental plans;
- cell phone, internet and TV;
- insurance (car, property, electronics, etc.);
- subscription (Spotify, Netflix, Amazon Prime, etc.);
- services of self-employed professionals (accountant, hairdresser, private tutor, psychologist, etc.).
Also record essential variable costs, which are those that cannot be cut from your budget in any way, such as:
- food (butcher shop, fair, bakery, supermarket and greengrocer);
- personal care (hygiene and wellness products);
- cleaning products;
- diarist service;
- public transport and/or car fuel;
- pet food and products in general.
Finally, just monitor all expenses daily in order to look for alternatives to save money and/or eliminate superfluous expenses. By doing this, you have a great chance of overcoming and/or avoiding a financial crisis, as you will know exactly how to save and retain finances .
2. Have an extra income
Make extra money whenever the opportunity arises. After all, the more time of your day you dedicate to this, the more return you will have. It pays a lot to make an extra effort to get out of debt and set up a reserve.
There are several possibilities, such as:
- thrift store;
- sale or resale of products;
- private lessons;
- equipment rental;
- creation, editing, proofreading and translation of internet content.
In addition, after paying off all financial commitments, the extra income will be useful for making investments and building equity to ensure a more peaceful future.
3. Set up an emergency reserve
If you commit your entire budget to the accounts mentioned in the previous topic, you will run a serious risk of debt, as you will have nowhere to get money to spend the month in the positive. Therefore, if your desire is to know how to get out of debt once and for all, you need to set up an emergency reserve.
It represents an amount that should cover 6 to 12 months of your monthly costs, depending on your professional stability. If this amount is R$3,000, for example, your reservation must be between R$18,000 and R$36,000. Yes, it’s a lot of money , but the reserve builds up little by little.
4. Live one step below to avoid new debts
Lowering the standard of living is the best way to avoid further debt. That is, it is not necessary to have the latest cell phone model or a brand new car . The tip is to reassess your lifestyle and go down a step to relieve your budget.
The idea is that this is done not only today, but also when you start earning more. Having a higher income does not mean that you will have to extrapolate your expenses, but that you will have the chance to invest and save for your future.
5. Pay attention to the due date of the card invoice
With several bills to pay every month, it’s common to forget some. But none compares to the problem of failing to pay the credit card bill, due to the high interest charged from this delay.
Therefore, memorize the due date of this issue to avoid problems. Write down the day in your electronic calendar or set up notifications in the bank’s own application to be reminded as soon as the date is close.
In addition, it is worth mentioning that the credit card generates a false perception that we have money and that we can spend more, but a limit does not mean money in the account.
Due to the advertisements that pop up on the cell phone screen and other devices frequently, we are susceptible to spending more. However, it’s important to assess whether you really need the products that brands offer, or if it’s just an impulsive purchase . Research, compare prices and, when you realize that the product is not so necessary, don’t buy it.
Finally, if it is really necessary to replace an essential product, such as a refrigerator, and you don’t have all the money to buy it in cash, close a deal with a store that offers installments with a low interest rate.
6. Invest in financial investments
For a beginner, it is recommended to invest in Fixed Income due to the security and higher profitability than Savings. However, if you want to make slightly riskier investments in search of higher returns, you can invest in Variable Income.
The tip is to diversify your investment portfolio and study the financial market to understand how it works in times of bonanza and adversity. Thus, you invest your money in financial products compatible with your profile.
So, what did you think of the initiatives to find out how to get out of a financial crisis? By putting the tips mentioned into practice, you will have a great chance of ensuring a more prosperous and peaceful life. The secret is to follow safe paths to ensure that your budget is always positive. Earning, managing, and using money wisely is critical to success.