In this content, I wanted to discuss to you about 5 Steps To Having Total FINANCIAL CONTROL? how you can control your financial life in just 5 steps? So let’s discuss the 5 Steps To Having Total FINANCIAL CONTROL. The first of these steps and for me, the most important, is that you define your main financial objectives. A financial goal is not just a random goal, but a dream or something that you want to conquer.
It can be a material thing, like buying a car, buying an apartment. It can also be a goal more related to your professional side, how to organize to quit your job, acquire a franchise, invest in some course that will boost your professional career… Anyway, it can be anything, as long as you can for this purpose not only to define what it is but to define a term and a value for him. Ah, I want to buy an apartment of 300 thousand reais in 5 years. Or I want to quit my job in 12 months, having accumulated 50 thousand reais. Anyway, there are going to be a number of factors that you can take into consideration. But for you to set goals, you will always need a deadline and a value. Why do I discuss setting financial goals and why is it so important? I think this is even more important for you to understand. Because it will be your financial goals and, mainly, your financial progress, how close you are to them, which will give you the necessary motivation to continue to take those actions that often have nothing of: “Wow, what nice to keep notes of expenses.
HOW TO HAVE FINANCIAL CONTROL
How nice to be in control of my financial life. Or controlling my spending. ” But this is what will propel you to continue doing these activities that in the first moment may be a little bit boring for you, but that’s what will get you actually give the result. So it is very important that you define your big goals, so many more (short-term ones), as well as longer objectives such as retirement, freedom financial. Because they will be the ones that will give you the necessary motivation to move on, to you keep making progress. The second step you should take after you have your goals is to work out your budget. You will need to prepare the budget, even to fit your budget how you will be able to live, your monthly maintenance, but also how you will be able to plan for the short term and how you will be able to plan for the long term.
Obviously, a part of your budget has to provide for some extra expenses. Those expenses that you want to have freedom, which is that thing that you can go out with your friends, you buy some objects that are not so important to you, but that you just want to, buy clothes, buy… in short, take trips. This kind of thing.
I recommended you up here will explain to you a lot best. But what is it really important for you to have a budget for? For you to control your expenses, manage and be sure that within it your goals are there. That a part of your income is being directed towards each of your goals, be it short that is, in the long run. We have reached the third step. What would be the third step? You evaluate each of the expenses, each of the expense items that you put there in your budget. Why do I say that? Because many times when you make your first budget, the only thing you do is: “My current expenses are these, so I’m just going to put them in my budget. ” And then you are not giving yourself the opportunity to eliminate expenses that are likely to be unnecessary or even to reduce some of them that you now think you can’t do, but what you can do.
So, this evaluation phase is when you will identify what is really essential to you than it is just something you want to have and that should then be in that 20 % of the extra expenses. If it doesn’t fit there, it would be a time for you to cut your spending. So, a big question that I like a lot. There was a time when I mentioned this to someone and the person said: “Wow, that changed my life! This showed how I can actually identify what extra expenses are for me.
5 Steps To Having Total Financial Control
” Which is the following, so that you know what is really basic for you, after having made your budget you stop and ask the following question: if I were fired today if I lost my job today if I lost my main source of income today, what would I keep in my life and what would I eliminate from my life? When you ask that question you will actually be able to identify what is really essential in your financial life and what is just superfluous and that could be cut smoothly. So, by asking this question you will be able to identify exactly what are the main expenses, the basic expenses of your life, to know how much you can dry in your life and in fact focus on your short-term goals, your long-term goals and then yes in those extra expenses.
It is also very important to say the following. These extra expenses can be temporarily reallocated. For example, in the beginning, you may not be able to fit your monthly maintenance 60% of the budget. So, in the first months, you can use the extra 20% just for that business to rearrange the house. You deprive yourself a little for 2 months, 3 months and leave these extras to be able to supply your basic budget … And then yes, as you get more control, you manage to organize yourself, you free up part of your extra budget for your extra expenses. Another element, another factor that you can also use these extras is the following. Again, always remembering, temporarily? You use these extras for like. I’m going to dry my life now. I’m really going to deprive myself of doing a lot of things because I want to speed up the reach of an objective. Like I’m looking to add a lot of quick cash so I can, I don’t know, quit.
So, I want to add some money here, make a very nice reserve fund that can I don’t know, 6 months of my life. So I can resign and spend 6 months studying for a contest. Or spend 6 months investing in a project that you haven’t yet given me income, but that the plan is that it will give income.
Many people end up doing this and manage to have very big financial results, but not everything is just the financial side. So, when you focus only on the financial and leave aside other things that give you pleasure, that give you satisfaction. In the end, they end up rewarding. You Experiences, travel, going out with your kids, buying that car you’ve always dreamed of to have, buy that property that you always dreamed of having. So, you do need to focus on those things too. So, this would be the third step, which is to evaluate your expenses. And I gave her some tips on how you can make this assessment. Then we reach the fourth step. And what would be the fourth step? You write down all your expenses. Why? Because you already make a budget from the beginning. It is important that you define your goals. Made a budget, evaluated each expense, but what will happen? Over time you will realize that many times that amount that you thought you spent with fuel, I thought I spent on food, I thought I spent on food, not really that. So, when you write down your expenses you will have an x-ray of your financial life from the point from a practical point of view, from day today. With this, you will be able to refine your budget much better. Then, you write down your expenses. You can do it for the next 30 days, starting now. This will give you a very good basis for your next budget and especially for the fifth step. But I already make it very clear, This fourth step, the first for me is the most important.
What are your financial goals? What is going to give you that real motivation for you to be able to control your financial life? I believe that this fourth step is what will give you the most results. That is why it is so important that you write down all your expenses. You can start with the next 30 days, but try to keep this habit for a good phase of your life, for the rest of your financial life, if applicable, because that will always show you, in practice, where your money is going, where your budget leaks are. Since those small values, but those things that you budget, do you think everything will be all right. You see it fits your salary, it comes at the end of the month, no you have money in your account and you don’t know why. When you write down your expenses, you will know exactly why.
You will know the reason, you will know where your money is going. And then you get to the fifth step that you can only do, you can only take if you have written down all your expenses. What is it? Review your budget. You can only review your budget if you can compare what it was budgeted, what was planned, with what actually happened. So, you do the planning which is your budget and match it with what happened, which are the expenses you wrote down. That’s what your plan is going to be. Evaluation of expenses. This is what will make your budget better planned initially. The fourth step is to note the expenses, So that in the fifth step you can review all of them and then have a precise, perfect budget, that ideal model you can follow and can put it into practice in your financial life.
So, I think that with these steps you will be able to have total financial control, total financial balance. And if you want to streamline this process, there are ways that you can spend less, you earn more money, you manage to invest your money better.