How to take control of your personal finances and change your finances 

How important is it to make a personal financial control? 

Know that this is very important for your financial health and the balance of your actions and decisions.

Initially, financial control serves to record and account for your expenses, costs and income, the purpose of this is precisely to know how you are using your hard-earned money.

Therefore, having this information makes it much easier to make plans, invest, save, carry out new projects and finance your dreams, without having to stress so much.

In this sense, there are some actions that, if put into practice, can help you help a lot in your goals.

Keep reading and find out what they are!

1. Understand your real financial situation!

First of all, being aware of your financial situation is the first step to take; knowing your income and expenses for the month.

This will help you identify potential financial holes and a potential opportunity and insight into where you need to improve.

In this sense, this process will give you a clearer idea of reality and make your future decisions based on what can actually be done, without illusions.

2. Personal financial control: try to control your expenses!

Here, the idea is to control your financial actions, know what your main expenses are and look for a way to reduce them or, depending on the expense, eliminate them.

From now on, try to avoid frivolous and senseless spending, think about whether it is really necessary to commit your credit card to unnecessary purchases.

So, when you put this step into practice, you will definitely have some money left over to save or invest.

Therefore, have an idea of your costs and expenses, separating them into fixed expenses such as: water, internet, electricity, market, and the other part the variable expenses that involve leisure and other things.

Here's an example of what you can do:

• How much do you earn per month?
• What are the monthly expenses?
• How much of your salary is committed to expenses?
• Variable expenses and fixed expenses;
• How much do I need to save each month in case of an unforeseen event?

3. Personal financial control: decide what is a priority for you and plan accordingly!

Develop an action plan to achieve your goals, specify your priorities, set targets to be achieved in the short, medium and long term.

Also keep in mind to achieve your dreams with discipline and awareness of what you are doing so as not to ruin everything.

4. Make use of financial control tools!

Try to use methods of financial tools to help with your financial management.

There are great apps in this regard that will help you, in addition to spreadsheets, you can also search for free information on the internet.

There are many videos on the internet with good instructions and tips that will help you with your financial control.

5. Start creating a financial mindset 

Now it is necessary to develop a financial mindset, and for that it is necessary to seek qualification in this sense.

Therefore, look for free courses. There are a variety of professionals online who provide good content on their YouTube channels, for example.

As well as articles, blogs, podcasts, good books, and tutorials from people who have gone through the same process as you and were successful.

6. Personal financial control: Start investing 

With a well-developed financial mindset, it's time for you to start investing, after all, this is also part of your financial control.

This way, you will be able to protect and develop your assets and take increasingly higher steps, but with balance.

However, before you start investing, first know your investor profile: whether you are conservative, moderate or bold.

So, keeping your profile in mind, you will look for the investments that best suit your style to start investing.

7. Make a emergency reserve 

Finally, something that you can't miss is an emergency fund, it will support you in adverse situations and unforeseen events.

Plus, you won't have to touch your investments or borrow money if an emergency occurs.

It is recommended that the value of the emergency reserve covers an average of six months of your monthly costs.

Remember to put this amount in a checking account, after all, money sitting idle without yielding any profit does not bring any advantage.

In this case, a great idea is fixed income alternatives with immediate redemption.

Conclusion 

Know that when you decide to make a personal financial control, You will be taking a big step that will bring advantages and benefits in all areas of your life.

After all, this will allow you to make your dreams come true and help you have a stable financial life.

Andre Neri January 18, 2024