Archives March 2019

Personal Finance: Take Control With These 15 Simple Tips

 Having control over personal finances is critical for everyone.

It may not seem like it, but it’s simple to manage and enjoy your money. You can increase your equity by following some tips that we will give.

The secret is in discipline, in knowing how to manage personal finances .

Unfortunately, we do not have the culture of financial education. The education system does not have methods to bring this knowledge to the children.

But this reality is possible to change. Adults who have learned how to manage finances with their parents can be considered lucky.

Concept of personal finance

Concept of personal finance

We call personal finances every decision you make to manage your money and your assets.

The concept also extends to the financial management of a family .

It is a discipline, so when we talk about personal finances, we are talking about practice, strategies for approach and decision making.

We can say that not all the people who get rich know the concept of personal finances , but they all apply it.

This is because it is a set of practical knowledge about capital management .

It is through the organization of your finances that you can have a comfortable and quiet life.

How to organize personal finances?

How to organize personal finances?

The organization of personal finances is fundamental for those who want to extend the patrimony. And there’s only one way to do it: making more money than you spend.

For this to happen, you must know how much goes into your box and how much it leaves. More than that, you need to know where your money is going.

As? Through financial education. It may not seem like it, but taking care of money is a science and an art.

There is no formula to enrich, but there is a discipline necessary to make money. Let’s see what it is?

15 Proven Personal Finance Tips

15 Proven Personal Finance Tips

Wealth is not the result of chance. If it were, there might not have been an economics faculty.

In addition, more and more the pursuit of financial education study, as people began to awaken to the subject.

It is known that there are habits that help you to get rich. Here are the top 15 tips for your personal finances .

You will know the ideal path to strengthening wealth and enrichment. Check out!

1. Manage finances using a personal finance worksheet

One of the simplest tools for controlling expenses is the spreadsheet. It is easily adaptable to your financial reality .

Basically you can build the table you want, moreover, it is easily understood since you only need to list the expenses to have control.

Of course, there are several types of worksheets that vary depending on the complexity of your income.

However, you need to know that any table is better than not having a control.

And if you do not know where to start, download the spreadsheet’s Good To Credit spending.

2. Swap debts and high interest for smaller interest to control your personal finances

One habit you should have is to always look at the interest rate on everything you are hiring, be it a service or a credit card .

You will be amazed at how much fee you pay.

Compare values ​​and always opt for the lowest interest rates .

Over time you will see that it is worth more to wait to pay cash – and to have a more direct negotiation, with discounts – than to pay in installments and end up paying double the amount.

If you want a low interest rate on a personal loan , check out the conditions of the Credit Lender partners, since they are the lowest rates in the market .

3. Cut Unnecessary Spending

List all your expenses to get a balance. You ‘ll see where your money is going .

From there, you get to know what really matters, and what is superfluous.

With this, it is possible to make unnecessary spending cuts , one of the main tasks for capital accumulation.

If you find it difficult to lay down the expenses that are unnecessary, ask yourself a few questions, such as, “Do I really need this?”, “Is this helping me in any way to make more money or is it lost money?” And “I can change this product for a cheaper brand? “.

4. Pay your bills on time

If we do not have control of the accounts, we may even forget a few tickets.

One way to never lose yourself is to pay your bills on time . You avoid headaches or even fines that would be part of your income.

You know how much interest can cost in your pocket. By paying by the day, you also create a habit of cherishing the payday, which is key to creating a solid equity .

 

5. Create a financial reserve for emergencies, save a little every month

Another fundamental step to have a good control of personal finances is to create a financial reserve.

Surely you already needed money in emergencies, and you had to take out other expenses or even borrow.

A financial reserve serves just that. With this background, you do not have to tinker with your accounts.

Save an amount every month to keep this fund. It is ideal that you have enough value to live at least 3 months without having to generate income.

This fund will serve both for health emergencies, repair of appliances, accounts of last minute, that is, everything that is considered urgent.

6. Trade in arrears

The ideal for building a solid financial asset is to have no debt. But when we are aware of this, we are almost always indebted.

The first step is to take out these debts, and a good way to do this is by renegotiating with the lender. If you can not pay cash – it’s ideal – at least try a good deal that guarantees you money and allows you to get paid quickly.

Remember that the faster you repay a debt, the better.

When buying, avoid paying in installments to not increase the amount with interest .

Likewise, it is ideal that you have a good amount to pay the debt in cash, as this will get you a good discount .

7. Use credit card consciously

Perhaps one of the biggest difficulties we face when we want to build an equity is to spend the credit card consciously .

To do this, establish really valid criteria, because the interest rate of the cards is among the highest.

A credit card is an extra utensil for your purchases .

Therefore, it is important that you understand that it should serve the good of your finances, it should not be an enemy. Be aware.

8. Create shopping list before going to the supermarket

If you have the habit of going to the supermarket several times during the month, whenever you remember that you need something, you know what it’s like to spend more than you planned.

After all, we usually buy more than we need .

Therefore, the idea behind this tip is simple: we need to go as little as possible to the supermarket , to avoid expenses.

As we pass between the shelves, we are reminded of products that we do not have in the pantry , often even unnecessary .

The alternative to avoid this problem is to create lists with everything you need to buy before going to the supermarket .

You do not only save money, it saves time too, the most precious commodity nowadays.

Have a great list to print so you can mark the items you need monthly .

By doing this, you minimize your trips to the grocery store and, believe me, will save a lot of money .

9. Create concrete personal finance goals

It is difficult to achieve goals without goals . For example, if you want to do 10 tasks in the week, you need to have at least one goal: that you have done half the tasks in the middle of the week.

In financial terms, your goals must be fully achievable . You can both establish how much you should spend in the month and how much you should make.

But be realistic: if you set a very high goal for your current condition, you may not fulfill it, and because of that you become discouraged by your routine.

An example of achievable goal is to reduce by 200 reais the expenses of the month. If it’s easy for you, you can increase it next month .

10. Understand the difference between fixed and variable expenses to control personal finances

Two fundamental concepts for the organization of finances are fixed expenses and variable expenses.

A fixed expense is one whose value is maintained regardless of the month, for example, the amount of your rent, the provision of the car, cable TV, the gym.

The variable expense depends on how much you spend, such as light, water, food.

It is important to understand these two concepts to know how to act in the organization.

If you need to cut expenses, you can try to reduce variable expenses , or cut from unnecessary fixed expenses .

11. Use the 50-15-35 rule to control personal finances

This rule states that you should dedicate 50% of your finances to essential expenses, 15% for financial priorities and 35% for lifestyle.

Essential expenses are all you need to stay on the day-to-day: light, water, market, gas, etc.

Financial priorities are those you need to direct the money to quickly, for example, a debt you need to pay or an investment.

The remaining 35% is for you to spend on your lifestyle.

In this category, for example, leisure time, spending on restaurants, drinks, clothes, travel, etc.

Rule 50-15-35 will help you stay on track and properly organize your finances .

12. Invest your money, even if it is little

It is no use to be moderate in spending and organized in planning if you are not making your money pay off.

You need to acquire assets, that is, you must count on alternatives that will multiply your money without generating many expenses.

Always invest , even if you do little about it in the month for that.

There are several types of investments in the market, good research will show you the best way.

But always follow this rule: Do not put all the money into risky investments (when there is a high chance of losing), but do not just stick with the conservatives (who make little money).

13. Teach Your Family About Personal Finance

You can be responsible for all the finances of your family.

But that is not enough if only you understand the subject. Financial education is essential for the family heritage of growth, although the income of through a person only.

Therefore, understand that knowledge about personal finance should be everyone’s. Teach your children, guide the family members who live with you so that everyone works together.

14. Do not use overdraft

Many people who break believe that overdraft is a kind of credit.

On the contrary, it is debt! For example, if you have 100 reais in your account, and the bank gives you 300 overdrafts, that does not mean you have 400 credit.

You have 100, but 300 available if you want to borrow.

And therein lies the danger: the overdraft interest rates are usually the highest .

It is possible to state that there is no “prudent” way of using the overdraft. The best is never to use it. Always keep credit so you do not have to resort to it.

15. Use an application to keep your personal finances up to date

Another tool that can assist you in controlling finances is an application. After all, they are easy to use and are always in the palm of the hand.

You can check how your balance is in the month, calculate expenses, write down accounts and more.


How do you use the “envelope financial system”? – Let’s look at the rules

The most important issue in today’s household is how to stay within our own financial borders without losing our credit cards, commodities credits, and personal loans. There are many people who unconsciously, but are already using financial envelopes of the “envelope financial system”. In this article, we will follow the most important rules and principles of this system.

If you like spending, the envelope financial system is right for you, as you will be able to keep yourself in control!

 

# 1 Buy colorful envelopes for yourself

# 1 Buy colorful envelopes for yourself

Many types of envelopes can be captured for this purpose. However, I suggest that you try this method with enveloped envelopes, so you can apply the principle absolutely without any possibility of error.

You’ll need exactly as many envelopes as you have defined for your main spending groups. I do not recommend that you create a separate group for each of your spending because you end up confused. Instead, try to create the clearest possible division!

I have determined myself the following division:

  • Overhead Envelope
  • Credit envelope
  • Food envelope
  • Entertainment Envelope
  • Pocket Money Envelope
  • Envelope with clothing
  • Travel (not vacation) envelope

 

# 2 Share your pay and place your money

# 2 Share your pay and place your money

You have to share and deposit all forints! The most important thing is that you can’t stay “back”, all the money has to find the right envelope! Surely the question has arisen in you that this is all right, but where is the savings envelope?

You have to learn not to put aside the money that remains after spending, but spend the money that remains after the savings!

From your monthly regular income, you first withdraw the money you need for the purposes defined by the Good strategy, ensuring your medium and long term goals. You’ll then share the remaining money in your envelope financial system!

 

# 3 Determine Exact Amounts!

# 3 Determine Exact Amounts!

You will probably not be able to use this system properly if you cannot determine the exact amount. The reason for this is that the human brain thinks very sharply at the end points. Always “wondering” how to get from B to A.

By analogy, it is important to remember and define the amount of money that we are dedicated to for that purpose. However, you should not penny, you should not calculate the exact amount of money to the extreme, because we do not leave any room at all!

The unit of measurement of the system is HUF 1,000

  • Overhead envelope – HUF 150,000
  • Credit envelope – 50,000 forints
  • Food envelope – 70 000 HUF
  • Entertainment Envelope – 50,000 Forints
  • Pocket Money Envelope – 30,000 Forints
  • Envelope Clothing – 30,000 Forints
  • Travel (non-holiday) envelope – HUF 30,000

 

 

# 4 Always withdraw money from the required envelope! – The meaning of the envelope financial system

# 4 Always withdraw money from the required envelope! - The meaning of the envelope financial system

The whole system will work if you stick to the envelope system strictly. Always withdraw money from the appropriate envelope for your particular spending and return it to the same person. For you, this frame is the purpose you have set for yourself.

If the money is out of the envelope, it is strictly forbidden to redistribute the money from elsewhere, especially for any savings . Not even temporarily, not for 1 month, except in case of force majeure. The reason for this is that you will most likely want to overspend on something that was not planned. If this spending is planned, you could finance it from your “vacation” or “liquid savings” account.

 

# 5 Repeat next month

# 5 Repeat next month

Art is not that you are trying the system for one month and you find that it works / does not work. The real challenge is to start the second, then the third month, and face the cruel realization that so far

  1. you are constantly over-spending
  2. more and more money is left

For the sake of recognition, I would open an extra envelope in my place where I would transfer the money left in the envelopes from the previous month on the day of each month’s payment. I would always count how much I put over and would probably be surprised to be able to move more from month to month and how much money I earn in this bonus envelope…


Payday loans granted without checking the databases

Nowadays it is very difficult to get a payday loan without checking databases. On the non-banking market, however, there are not many companies that do not use this type of data verification and are based mainly on the customer’s current lending capacity.

In the initial phase, non-bank loans were granted mainly on the basis of income certificates. Is it under a contract of employment, based on retirement or pension sections. Times, however, change and now outside these documents, companies that provide such loans also verify the borrowers’ data in terms of possible debts.

Over the last years, non-bank companies have checked the data mainly in the debtors’ registers in terms of whether we have some debt in the payment of telephone bills, electricity or other invoices. Currently, however, more and more companies also use other, additional ways to verify the data. Such additional methods are verification in BIK (in which data about repayment of bank loans land) or in ZPF or the Loan Companies Association. The latter, moreover, associates most companies providing non-bank loans.

Loan companies without checking databases

Loan companies without checking databases

And is it possible to obtain non-bank loans without checking such databases? For example, we currently have quite a good monthly income, we have paid the majority of overdue debts. However, the problem is that, after previous delays, there was an entry in BIK and an entry for an unpaid invoice in the KRD. Do we have a loan opportunity in this option?

The chance for a loan is even in those institutions that check the data. However, the final decision is in the hands of those companies that treat each situation of the potential borrower individually.

However, there are companies that do not use data verification in BIK or in debtors’ registers, and it is even possible to obtain a loan even during bailiff classes. Such loans without checking databases are, however, available in a few non-bank companies. However, there is one important condition that I mentioned at the beginning. In order to get a loan, we must be in a good financial condition that will enable us to pay off the installments of this new loan. It is therefore necessary to have an employment contract for an indefinite period and income from our bank account. Thanks to this, the company will be able to verify the proceeds and whether they are actually sufficient to repay the loan. One of such new proposals on the non-bank loan market without checking databases is the offer of Lapuda Cash loans.

In the case of this company’s offer, the credit history we have is not valid. The company will give us a loan without checking the databases of verification of another debt base. The most important issue of getting a loan through Lapuda Cash will be to have a person who will be an additional collateral for the loan. This works almost the same way as a loan with a giro, only in this case the person who provides additional security for the loan is called a guarantor. The guarantor should have adequate creditworthiness, so if the main borrower fails to pay the loan installments, the repayment obligation will fall on his shoulders. The person who becomes the guarantor should also not have payment delays in the past. If we have such a trusted person in our environment, we will be able to take advantage of the loan with a guarantor, which will be a cheaper solution than a traditional cash loan.