There are some habits or practices that severely damage your pocket. And it is that we are so used to spending our money on things that seem necessary (although in reality not all of them are), that at the end of the week, fortnight or month we are left without enough cash for other things.
For this reason, we have thought of 7 habits or practices that you must eliminate from your life as soon as possible to improve your personal finances.
1. Not putting together a budgetThe number one mistake we must stop making is not having a budget that considers all our needs. If you do not have a list of the expenses that you will have in a certain period, it will be much easier for you to lack money to cover the basics to survive. Give priority to food, housing, clothing, school fees, credit payments... In the end, if you have a surplus, you can use it to satisfy a whim or whim, although we recommend saving for your long-term goals.
2. Ignore your budget
Creating a budget requires dedication and sincerity, but sticking to the letter requires discipline. Remember, whenever you feel tempted to abandon your resolutions, that this is a commitment to yourself and probably to your loved ones.
3. Spend more than you earn
Having access to credit does not mean having extra money, because in the end, everything you spend will have to be paid on time, or interest could represent an even bigger problem.
4. Not having an emergency fund
Whether it is to deal with a health emergency or an unforeseen event at home after an accident, an emergency fund helps us to cover unexpected expenses. In addition, you can live with greater peace of mind.
5. Keep your money under the mattress
If you have already taken the first step towards the savings habit, we recommend that you do not keep your money under the mattress, because in addition to exposing yourself to risks, as well as the temptation to use it at any impulse, it is likely that in a given time it will lose its value. In order for your money to preserve, and sometimes increase, its value, we recommend that you save it in programs such as CETES or through low-risk investment funds or even in the bank. In this way you will stay away from temptations while experiencing the calm of security.
6. Not having a PPR
You may now have everything under control, and you may think, “as long as I'm working, I have nothing to worry about”, but it's time to think about the future. At some point it will be necessary for you to have a PPR or Personal Retirement Plan. By hiring a PPR you will be able to pay monthly amounts that you consider pertinent to enjoy a kind of retirement pension when you turn 65. It seems far away, but your personal finances are worth worrying about when you're older.
7. Keep accounts in your mind
We know that the subject is not always easy to approach, especially since we usually relate it to numbers, addition, subtraction, multiplication, division, etc. However, this is already a thing of the past, because today everything is simpler. Keeping track of accounts in your head can cause a lot of stress, and pencil and paper can easily get lost. We recommend using a spreadsheet or, in the best of cases, you can count on the Finerio app, which will help you organize all this that we have told you about quickly and easily.
The time to kick bad habits is now!
