What are personal finances?
At first, personal finance corresponds to a financial organization, where they deal with personal goals. That is, within short-term or long-term sectors. For example: retirement, interesting show, college, a trip, among others. But, in addition to “dreams” and goals, it is necessary to practice economy, reduce expenses, and meet needs. In short, you can see how simple it is at first to name and denote what your finance priorities are.
However, over the days, we end up getting distracted, and even losing focus. That is, if we don’t have a concrete plan, we won’t be able to reach our goals. It is certainly important to have a general and broad viewthe current financial situation we are in. And that way, draw up a plan based on sectors . Being them:
- Subcategorize the needs;
- Personal taxes;
- Routine emergencies.
Why organize personal finances?
It is very important to become financially literate to make the most of your income and savings. Where financial literacy helps to distinguish between good and bad financial advice and to make smart decisions . In the meantime, we have a new concept of smart personal finance, in the century we live in. Where it involves developing strategies that include:
- Budget;
- Creation of an emergency fund;
- Payment of debts;
- Smart use of credit cards;
- Saving for retirement.
However, knowledge without application is theory. In summary, knowing how to apply and use the best ways to save money, and invest it at the right time, is the key to turning your financial life around. First of all, we quote in our other articles, Methods and Insights well off the learning curve. Where they can certainly help you in other different areas of finance.
Top 5 tips for your personal finances:
1. Detail your financial goals:
Long term goals : Buy a house; Retire early; Buying a car, etc. These goals are separate from your short-term goals like saving up for a nice date night. More than 2 years. Short-term goals : Like sticking to a budget, lowering your spending, buying things cheaply, or not using your credit card. Up to 6 months.
2. Strengthen your plan
First of all, building an emergency fund is another key to financial success and stress reduction. Likewise in, contribute and save for long-term goals such as retirement, finance, property. That is, regardless of the stage of your financial plan.
3. Make and stick to a budget, plan and organize
Use budgeting software on a mobile app to enter expenses in real time. Then plan expenses ahead of time to avoid overspending. According to the planning list, so you will have greater control over your routine expenses.
4. Pay off debts
Sell unused or unwanted items around your home to find extra cash to add to your debt repayment plan. Also, a second job can help speed up the debt-paying process . After all, it may be necessary if you want to make quick and lasting changes for certain situations. So, look for areas where you can cut your spending, and thus increase your available cash .
5. Ask for advice and study about
Look online for a course that offers free or low-cost classes or workshops on personal finance and budgeting. Or even a book about it. In conclusion, find a mentor who is willing to help you formulate and work on your budget in the first few months. Where does this mentor help you if you are overwhelmed with the process of saving.
Example of 6 Finance Organizer Apps
Then we’ll show you the best personal finance apps. They certainly helped as a tool to help your expenses, profits, budget, investments, and much more.
1. Mobills;
Available for Android, IOS and web. Containing guides in which you separate your expenses and earnings into categories. In addition, there is the functionality to define spending limits, credit card registrations, among others.
2. Organize;
Currently, many Fintech have become popular in credit media. For example, Nubank, Itaú, Mercado Pago, etc. That is, this App provides a data connection between them and thus being able to organize and control the flow between your finances.
3. Money Lover;
Money Lover is a practical App, where it is possible to connect what goes in, and the limit to be spent. Finally, it generates values based on budgets provided by the user. Where you can visualize and understand your cash flow.
4. Toshl Finance ;
In this App, we have full monitoring of your finances. In short, it connects all your accounts. Therefore, it is necessary to enter your expenses, so that the App can take stock and give you manual and summarized access to your financial operations.
5. CoinKeeper ;
Although this is not Brazilian, it has a Portuguese version to be downloaded. With a 15-day free version, the App has the exclusivity of live analysis, the path and flow of your personal finances.
6. Moneyy ;
Finally, Monefy, available on Google Play and App Store, containing its free and paid version. It is worth mentioning that in this App, the analysis of data in graphs, presented to users, is excellent. Due to its functionality, we recommend it to assist in finance and investments.