As of January, corrective measures should be taken so that 2018 does not become a nightmare for your personal finances.
One of the mistakes people make is to plan poorly since the beginning of the year.
If you are one of those who think that next month will begin to make decisions about your financial stability, we recommend that you stop reading this moment, as this information will not be useful for your pocket. But if, on the contrary, if you are tired of losing control over your money, we have a number of recommendations to put into practice. We elaborate this list that can be of utility so that month to month you leave the economic difficulties that persecute it.
The first step is to learn to distinguish between need and desire. Many people confuse these two terms and therefore end up spending more than they should. Start by defining what your day-to-day spending is and how much money you have left. With this information you can prioritize and fulfill some peculiarities. Here are some tips that may be useful month to month for an economically prosperous year:
January, start with a budget:
You must have a stream of income for the first three months of the year that includes all your fixed and variable expenses.
February, the month of not making unnecessary expenses:
In many cases, and without realizing it, people buy or consume products that have no contribution or benefit to them, motivated only by the “heat of the moment”. You must be careful and avoid falling into temptation.
March, to keep the debt level as low as possible:
you should always look for the lowest rate of interest and avoid unnecessary borrowing.
April, to balance your expenses:
When you receive your salary, you must arrange the money in a simple way that separates the savings from the fixed expenses and variable expenses. The recommended ideal distribution is 70 to 30, where 70% includes housing, health, education and transportation, and 30% are intended for savings, entertainment or personal tastes and debt repayment.
May, to set investment goals:
If you have not yet made the decision to invest, keep in mind that in the market there are several instruments with different levels of risk, depending on your needs. The important thing is that you choose those that produce higher returns than inflation, so that money does not lose its purchasing power over time.
June, look for changes:
For this month you should analyze the economic situation in which you are and evaluate what is being done in the wrong way. If you want to get more income than you have, you have the option of investing in something secure or looking for other additional work, including adjusting your lifestyle to your financial capacity.
July, manage your vacation:
Although, you can receive this revenue in June, it is in July, where you must determine what you will use, once you get your hands on. Take advantage of this extra revenue and leave it as a reserve to take on additional expenses and debts that may arise during the first quarter of the year.
August, in fact, invest in you:
A safe way to save money is to invest in personal skills, specifically in studies that seek personal and professional enhancements. A postgraduate study, a specialization, language or some extra activity that can increase your knowledge and income is the best investment you can make.
September, build an emergency fund:
In many cases, people do not analyze in depth the current economic situation they are in and end up in an unstable financial life. Therefore, it is necessary to have a savings fund so that, by the end of 2018, be covered before any eventuality or a pleasure can be given that does not sacrifice your fixed expenses. The recommendation is to save at least 10% of the monthly income.
October, month of awareness of your protection and insurance needs:
If you do not have the insurance you need to protect your future, your family or your inheritance, it’s time to investigate and choose those that guarantee the quality of life and peace of you and his family in case of calamity.
November, eliminating the expenses of the “ants”:
The money spent on these little things of everyday life (cigarettes, meals and snacks out, among others) may be more than you think. It is preferable that, within the market, you buy the products you consume daily at work, avoiding waste. You can combine year-end desires that improve your habits and contribute to your finances, for example: stop smoking or start taking care of your diet.
December, goodbye to debts:
New year, new life. This time of year is a good time to propose the solution of your creditor life. That is why it is suggested to settle your obligations where there are many options to help you achieve it, but more importantly you accept that you have a problem and that you are willing to solve it. Remember that if your debt exceeds 30% of your income, you have an over-indebtedness problem and it is important to seek the support of a specialist.