Financial education is nothing more than a way to achieve a healthier relationship with money! Instead of seeing the budget as a “big thing with seven heads”, whose account never seems to close, for those who exercise this skill, money is a way to maintain the standard of living and achieve goals and dreams that require this type of resource. But it’s no use just staying in the concept, the most important thing is to put it into practice on a daily basis! Want to know how? Check out our tips!
Search for information on the subject
If you want to incorporate financial education into your routine, the first step is to find out about it! Dedicate at least half an hour of your day to this. Currently, there are YouTube channels completely focused on this topic, as well as profiles on social networks, podcasts and books. Look for different professionals who bring these guidelines until you find one (or several!) that has a language with which you identify.
The best part is that these most current channels that are focused on financial education in a very practical way, that are really applicable for everyone! The more you inform yourself, the more you will create awareness and this will directly reflect on how you manage your budget.
Spend with conscience
Many people have the habit of buying online as a way to de-stress, for example, and don’t even realize how much they are spending. Others go to the supermarket not knowing exactly what they need and fill the cart with products that were not needed. There are still those who simply swipe their card throughout the day and, when they get home, they have no idea how much they spent.
To insert financial education into your routine, you need to create awareness about your every expense. That is, really being mentally present every time you swipe your card or complete an online purchase, thinking about it!
There are strategies for this! For example, if you find that you buy a lot online on impulse, try doing the following: put the payment on the boleto. Thus, you will have a deadline to make the payment and, in that interval, you will be able to think if you really need that product or if it was just another moment of enthusiasm.
Try to identify what your “outlets” are, that is, your unconscious spending and look for strategies to control them.
Know your expenses
The expense spreadsheet is a classic of financial education, but it cannot be left out! You will only be able to better plan how to pay your expenses, pay off outstanding debts and achieve future goals if you know how much you spend. In this worksheet, it is necessary to put the fixed expenses, for example:
– Rent or installment of real estate financing;
– Installment of vehicle financing;
– Invoice for electricity, water, internet, telephone;
– Possible loans you are paying off.
And also variable expenses, such as:
– Credit card bill;
– Shopping, sightseeing, alternative food (a dinner out, for example);
– Daily expenses.
The total amount of costs will not always be the same, precisely because there are these variable expenses. Therefore, the worksheet must be completed every month. After three months, you will be able to average your monthly cost and this will facilitate all planning.
In addition, the spreadsheet also helps you to accurately visualize all your expenses (by the way, this is why many people avoid it!), therefore, it will be possible to identify which of them can be reduced or even cut.
Have a reservation and name it!
Many people find it difficult to save a monthly amount to build a reserve fund. If you can relate to this, maybe this reservation is too abstract, so give it a name. For example: family trip, home renovation or any other goal you have that requires financial planning. Looking at your expense spreadsheet and being aware of your monthly billing, define an amount that you will save per month to put in this reserve. Having a specific goal as a focus, it will be easier to save!
Another tip is that you can generate slips that are directed to your own account, putting the amount to be saved and the due date. There are apps that allow this and even some banks give this option. After all, we always find a way to pay the bills, so this can be an alternative to “trick the brain”.
Spend less and earn more
Another orientation that seems quite obvious and really is, but it is still one of the pillars of financial education! Now that you’ve prepared your cost spreadsheet and identified which ones will be cut or reduced, it’s time to look for alternatives to earn more. Not necessarily the path is to ask for a salary increase, but to find alternative sources of income.
What do you like to do that other people pay you to do? What do you already do to help friends and family that could become a source of income? Even if this is not your main form of profitability, any increase in monthly revenue is welcome to help organize your financial life and bring you closer to your goals.
invest your money
That idea that investing is something very complicated and that only highly specialized people can do it, has already fallen to the ground! Nowadays, anyone can invest! This is a way to make your money work and direct it more intelligently. In order to put this guideline into practice, take into account the following aspects:
– If you’re starting in the world of investments, separate a small percentage of your income for this;
– Research the different types of investment to understand which one is best suited to your profile;
– After choosing how you are going to invest your money, do more focused research on that selected way. Understand how it works, how much it yields, what the steps are, etc.
– Try not to count on that money invested right away for the following month. Instead, reinvest the profits you earn. Look at this as a medium to long-term income.
Also, constant investment helps change our mindset about finances! When you think about buying something completely superfluous, you’ll probably think about how that money would be better spent if it were part of your investments.
Renegotiate your debts
Have you decided to put financial education into practice and are you full of accumulated debts that you don’t even know for sure what the total amount is? Take a deep breath and put all those outstanding debts and amounts on paper. Contact creditors to renegotiate them, analyze what the interest rates are.
In many cases, it is worth applying for a personal loan to settle all these debts in cash and pay the installments of that loan. In addition to the interest rate being more attractive (especially when compared to the revolving credit card and the overdraft), you concentrate everything in a single installment, instead of having several different ones to pay every month. In terms of organization, this helps a lot!
Don’t let the subject of money be a taboo
This is a great maxim of financial education: the subject cannot be taboo! Think about your money, learn to recognize if you haven’t been a good steward of your finances. If you share your budget with someone, talk about it with that person, talk about bills and plans for the future.
Viewing money as a forbidden topic is a huge problem, because it deprives people of the opportunity to think about it more consciously and to talk about it, which can bring new perspectives.
If you have children, talk about it with them, bring financial education into the reality of children or teenagers. When they grow up and have to take care of their own budget, they’ll thank you, that’s for sure!
Don’t be afraid of money!
A tip closely related to the previous one: don’t be afraid to look for solutions to your financial problems. Be careful with common sense that often has no foundation. Like for example that idea that many people cultivate that the personal loan is a villain! On the contrary, he is a great ally in many circumstances, such as low interest rate credit that can be used in any way you prefer and need!
For those who are aiming to organize their financial life and clear their debts to start implementing financial education from now on, a personal loan is an excellent option!