How To Start The Year With Good Financial Health
The beginning of the new year is perfect to start a good financial health. Maybe it is the perfect time for you to order your finances and start adopting healthy habits that allow you to make your expenses more efficient and learn how to manage your money.
There are no magic recipes or secrets to maintaining good financial health, just try to adopt behaviors and habits that help you organize your economy so you do not spend more or waste money. The basis to start reorganizing your finances is the organization, a factor that causes many to abandon and end up spending without control.
It should be noted that maintaining good financial health does not mean having a notebook 24 hours a day to record each expense, but simply control a little more what you spend to avoid wasting money beyond your means. Although sometimes you must take the time necessary to make numbers, you will have the satisfaction of being able to make the most of your income and give you some tastes from time to time.
Tips for achieving good financial health
The first step to start organizing your finances and achieve them is to reduce debts. For this, you must determine how much money you owe, be it credit cards, personal loans, mortgages or car purchases, late tax debts, etc.
You must establish how much you owe, to what entities and what interest rate each one handles, as well as to consider if you allow a cancellation in advance in any of them. This will allow you to determine what debt you should pay in the first place or cancel in advance, to avoid paying too much interest.
The main priority to achieve good financial health is to eliminate debts, so, in addition to determining how much money you owe, you have to abandon the credit card and not acquire new debts, at least until you can control the ones you had previously.
Maintaining healthy finances does not mean not spending anything, but spending efficiently and always in relation to your income. The credit card is deceptive because it allows you to borrow beyond your means, and handles high percentages of interest, so you should always use it with caution and analyzing whether you should use it or not.
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Prepare a budget and adjust to it
It is the fundamental step in your finances to begin to heal. A budget will allow you to divide your income according to the needs you have, to allocate it to the highest priority. The creation of a budget will help you cancel your debts, build a savings fund and organize your finances better.
Although surely at the beginning it will be difficult for you to adjust to it and meet it, with time and perseverance enough, you can adapt and spend money without thinking all the time in the budget.
In your budget, you have to establish your income on the one hand and expenditures on the other. In the expenditures you have to distinguish between monthly fixed expenses, that is, those that are the same month by month (income, taxes, mortgage) and those that vary. In addition to this, you must include the creation of a savings fund to deal with any financial emergency. If you have too many debts, you can allocate less money to your fund, which you can then increase as you can cancel them.
Set financial goals
If you do not know where you want to go with your money, you should establish financial objectives that help you determine how much money you have to save, if you have future personal projects where you will need money, such as a wedding, a trip or buying a house or if you want to cancel the debts in a certain time.
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The goals or financial objectives help you maintain good financial health since you will have a guide to distribute your expenses more efficiently.