Saving money is the dream of most Brazilians, but unfortunately, not everyone can achieve this goal. In some cases, what is lacking is information, discipline and a little organization.
When we talk about any matter related to money, we must realize that most of the mistakes and successes have only one responsible: ourselves!
Knowing the reality of many people up close, I can say that the problem is not necessarily the lack of money, but the way we deal with it.
Money does not need to be treated as the most important issue in the world, but it is still impossible to be financially successful without accepting that it must also be treated with care and as a priority .
Saving money and not living in debt is possible!
Basically, the most sustainable lifestyle for saving money and not living in debt involves respecting your standard of living. Simple, isn’t it?
In theory, yes, it is relatively obvious, but in reality we have alarming numbers of indebtedness in the country.
A recent survey showed that consumer defaults advanced 2.3% in October compared to September, after discounting seasonal effects. When compared to October last year, the indicator rose 0.4%.
Planning, the watchword for saving money
At this point, I hope you already agree that to save money you need to establish some kind of financial planning.
There are several ways to start doing financial planning, and believe me, it’s easier than most people realize.
Financial planning is an ongoing process for determining strategies and developing ways to achieve one or more goals, such as traveling on vacation, changing cars or buying property.
This planning covers:
- The identification and balance of income and expenses;
- The reckoning for the standard of living possible;
- The choice of investments;
- Debt renegotiation, when necessary.
Financial planning: how to start saving money
The first step in financial planning should be to gather as much information as possible about your financial life. Current account and investment statements, proof of purchase, proof of income, among others help in the analysis of the financial situation.
It is important to raise the assets you already own, in addition to listing in detail everything you have in debt. The idea here is to understand what your real equity situation is so that you can prepare financial planning accordingly.
If you have debts, you should pay attention to the interest rates you are paying and those that are being practiced in the market. The best way out can be to renegotiate debts.
If you have investments, you need to observe the portfolio’s profitability and adjust it to your dreams, goals and even the timing of the economy.
How to save money and end debt in 5 steps
Now that it is clear how important planning is, I want to share with you some important steps to end debt. Follow:
Step 1: Diagnosis
It is the first step to understand exactly what is happening. Take a few hours to do a complete survey of all debts and your financial situation. Calculate from the updated debit balance to the interest being charged.
Step 2: Prioritization
At this point, when everything is already organized and documented, you are ready to move on to the second step, which is setting priorities. It will not always be possible to pay off all your debts at once – in fact, having that chance is something very rare.
Thus, the first option should be to pay debts whose interest rates are higher, as they will increase the balance due more quickly.
Step 3: Negotiation
The Brazilian is very ashamed to ask for a discount and, due to a cultural issue resulting from this characteristic, whoever makes a debt negotiation often ends up giving up a counter offer for the creditor. The shame of bargaining is usually expensive, very expensive.
Step 4: Honor the settlement payment
When a negotiation between creditors and debtors ends, the result is usually a fair bid. Thereafter, it is important to maintain the payment of the agreement. For this, it is essential that the family budget is prepared to support a period with this new expense.
Step 5: Face the real “villain”
It is common in delicate situations such as those related to indebtedness to be looking for culprits. We often hide in excuses and try to hold others accountable for our exaggerations.
It is very simple and comfortable to blame the credit card, the high interest rates, the store that always offers promotions, the neighbor that always buys things, etc. Take responsibility.
Saving money also requires you to stop borrowing
One of the fundamental reasons for adjusting the standard of living is to be able to start saving money so that you don’t have any more debt.
Many people do not know exactly the best time to start saving money. Here, we like to encourage a very practical idea: “I received, Lite Lending” . Did the salary fall into the account? Separate and store part immediately. Simple, isn’t it? The best part is that it works very well.
When you receive and already invest, you end up automating and creating a new habit – that of paying yourself first. Yes, after all you pay the electricity bill, the internet company, the bar, the hairdresser, but you end up (sometimes) forgetting to pay who else matters: yourself!