Are you lost in the accounts? Don’t know what else to do to get organized? If this is your case, comprehensive financial planning strategies will certainly help you master your finances. Thus, you will no longer be dominated by the accounts.
At first, you may think “controlling finances takes a lot of work” or “I’ve already given up, I’ve done everything and I can’t get organized”. Before giving up, get to know the comprehensive financial planning strategies, because by applying them you are sure to have full control of your expenses.
You will see that all comprehensive financial planning strategies are not difficult to put into practice. In fact, they are simple attitudes, but when done every month they generate a great result. Let’s now look at the practices you should take to master your finances.
1. Record all expenses
Do you know how much you spend per month? You may think so, but just in case, answer these simple questions:
- How much do you spend on streaming?
- How much, on average, do you pay for energy and water?
- What is the amount spent every month in the market?
- Do you have a car? How much do you spend on fuel?
- How much do you spend on leisure?
- How much do you spend on the card? What have you been spending on?
Were you able to answer all the questions? So, you already have control of your expenses. Now, if you have not succeeded, you must urgently record your accounts, without this, all other comprehensive financial planning strategies cannot be applied. To do this, you can use apps like YNAB where financial management is made easy, being able to see your current financial status in a few minutes.
2. Keep track of the maturity of your bills
To avoid fines and interest for late payment, you should keep track of the maturity of your accounts. This is indispensable, thinking about ensuring on-time payments and avoiding unnecessary expenses.
It’s very simple, just record all the due dates and be careful not to miss the payment day. You can even use digital tools such as YNAB for this.
By the way, this not only helps you avoid interest and penalties, but also increase your credit score. Companies value those who pay their debts on time. Thus, in the long run, you will be able to enjoy advantages such as financing and loans.
3. Set financial goals (comprehensive financial planning strategies)
Having well-defined financial goals brings benefits, such as the ease of maintaining discipline and the motivation to take better care of your money. However, setting unattainable goals will have the opposite effect. So, be realistic in setting goals.
For example, you can target paying off a debt (card, financing, loan, or any other account), even as a short-term goal. On the other hand, acquiring a property or planning for retirement are long-term goals.
Here’s the tip! Your goals should be specific, measurable, achievable, relevant, and time-bound. So, review your goals every 6 months or sooner to make sure you’re making progress.
4. Study about finances
Take the time to understand how to handle money. Many think they know how to use money, but in fact they only know how to spend money, but there are ways to make money work for you.
In addition, it has the advantage that the more knowledge you have, the more prepared you will be to make financial decisions.
Therefore, look for reliable sources, such as books, articles, videos, and online courses, which talk about budgeting, investments (investment funds, stocks, among others), home economics, and debt management.
5. Set up an emergency reserve (Comprehensive financial planning strategies)
Building an emergency reserveshould be a priority for everyone, before anything else. This saved amount will help you get out of debt, managing to get through times of crisis without getting into debt.
Ideally, the reserve should cover at least six months of your monthly expenses. Start by saving small amounts, and as you eliminate the bills, increase the amount saved.
Set the amount of the equivalent of six months of your expenses and start saving money as soon as possible.
6. Cut unnecessary expenses
Review your budget frequently to identify where you can cut spending. Small adjustments will make a big difference in the long run. For example, evaluate whether the streams you pay for are really necessary. We recommend that until you eliminate your debts, keep only 1 streaming and cancel all the others.
In addition, we also recommend that you avoid going out to dinner, because when you make food at home, you have a great saving at the end of the month.
Remembering that you should not be extremist, keep up some leisure activities. Organizing finances is a long-term activity, so keep some hobbies as this is also a part of life.
7. Change your habits
Transforming your habits can be difficult, but it’s also what brings great results in the long run. It is the small changes in everyday life that make the difference in life.
Some practical tips that will help you save are:
- Save a small amount every day
- Swap sports where you spend money for ones that can be done outdoors, for example, swap crossfit for street running or calisthenics
- Buy everything in cash, not spending anything on your credit card
- Invest in safe assets every month, even with small amounts
It is worth mentioning that having a balanced lifestyle does not mean giving up what you like, but what will improve your life not now, but in the future.
Conclusion (Comprehensive financial planning strategies)
By applying the 7 comprehensive financial planning strategies, you will be able to change your financial reality. Will the result be immediate? No! Depending on how much you are in debt, it will take months to see a significant result. However, within 2 months you will start to notice that the bills are decreasing and there is more money left over.
Start by registering the accounts, then you should review them regularly. So, create a goal to pay the bills, while you start saving thinking about building an emergency reserve.
Remember to pay off your debts and especially to change your habits, thinking about saving. With a focus on the long term, you can change your financial reality, good luck!
