Most important points of personal finance

It is very important to have a financial culture to survive in this competitive world. That is why personal finances are important. Having a certain level of financial training helps with greater economic stability and peace of mind in that regard.

 

The ABC of personal finance

personal finance

There are five aspects to which basic attention should be considered:

  • Budget. income, expenses and savings.
  • Credits and their costs: the interest rates involved. Especially in long-term loans, such as mortgage loans.
  • Investments and their diversification.
  • Insurance and risks: life and property.
  • Resources for retirement or pension: Afore chosen.

To know if the finances are healthy, the income must be greater than the expenses, this will save an amount for unforeseen futures. If the expenses exceed the saving capacity, the red numbers must be identified, that is to say, where it is paid more and reconsider if these disbursements are necessary or not.
To care for and minimize expenses it is important to make a responsible and intelligent consumption avoiding practices that generate unnecessary expenses. Assessing consumption habits and quantifying what weight they entail in the personal or family economy can help change and reduce consumption.

 

You have to plan a budget and stick to it

You have to plan a budget and stick to it

It is suggested to create a financial agenda that indicates when taxes should be paid. Tax returns must also be scheduled. Breaking any of these dates can be expensive. Planning expenses through a budget is very important, especially when the economic situation is not ideal

Specific financial goals must be established, not vague and without a clear time horizon. Very few Mexicans save for the future, when it must be one of the main goals in ordering personal finances.

Current tranquility and future security depend on forming and preserving a heritage based on discipline in expenses and savings.

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