Financial Education: Everything you need to know to save money and build your equity

The desire to build an asset that guarantees the financial stability of the family and especially the future of the children is the desire of several people. However, putting this dream into practice is not always as simple as it seems in the world of ideas.

Without planning, control, and well-defined goals to spend and save, a number of obstacles will arise that will compromise your budget and postpone your plans. For this reason, we have prepared a special post to help you better organize yourself financially to achieve your goals. Follow us!

Understand your expenses and your needs

Understand your expenses and your needs

First of all, you need to establish a starting point – which here will be to understand your spending and your needs. This is important because when you do not understand how to use your money, much less know where it is going every month, it is almost impossible to establish control of your finances . So follow our next steps!

Set your family’s monthly income

The first one is to define what your family’s monthly income is . For example, if you are married and have two children who are still studying, it will be formed by your income and that of your spouse – this, of course, if the person also works.

From the value you get, you can set the ideal standard of living for everyone and establish what the real needs are for the comfort, safety and well-being of your children. Thus, it will be possible to identify those unnecessary costs that do not fit with your financial reality (some are often caused only by the need to show off).

Take note of all your expenses

After the first step, it is time to know what your expenses are, after all. In other words, as the popular saying goes, it is time to name the oxen. For this, write down all the expenses that you remember, such as water, electricity, gas, condominium fee, IPVA, IPTU, health plan, dental plan, insurance, school tuition etc.

If necessary, ask your family for help. Both the spouse and the children can indicate accounts that went unnoticed at first. Remembering that the focus here is not to establish how much you spend, but with what you have spent , okay? After all, as we said at the outset, we need to know which destination end of your money.

Look for alternatives to your expenses

With all the monthly expenses in mind, you should analyze which ones can be replaced without difficulty by more alternatives in account or even at no extra cost to unburden your budget.

For example, if you live in a building that has a gym equipped, sports courts and swimming pools – and the cost of maintaining these areas, worth stressing, is already charged at the condominial fee – there is no point in paying a gym the part to work out, really?

Another similar case is paying for closed internet combos, fixed telephony and cable TV, which many operators offer, when you and especially your children only use, in fact, the first. In this situation, it pays to cancel this type of service and hire only a more robust internet package. The economy is significant!

Invest in good financial planning

Invest in good financial planning

After the three steps we talked about in the previous topic, you should start your financial planning . This will be the most repetitive step, no doubt, but also one of the most important for you to get your finances in order.

The reason for this is you will organize all the expenses you have throughout the month in a worksheet, registering and monitoring the values ​​of those that are:

  • fixed (F): which occur every month and the amounts charged are always the same (except in cases of readjustments), such as condominial fees, rent, tuition fees, etc.

  • variables (V): which occur every month, but the costs often change due to their level of consumption, such as electricity, water, postpaid cellular plan etc;

  • sporadic (E): they do not follow a frequency and happen only in special cases , such as in home repairs and repairs.

That way you can do two things. The first is to forecast the average current spending and for the next few months. The second, in turn, is to devise actions to economize with those variable and sporadic expenses and prevent them from having the same value and / or repeating themselves, compromising their budget. Here is an example of what the worksheet should look like:





Electric power (V)

R $ 150.00

R $ 202.00

R $ 197.00

Health plan (F)

R $ 450.00

R $ 450.00

R $ 450.00

Electrical reform in the house (E)

R $ 800.00

Tuition fees (F)

R $ 1,300.00

R $ 1,300.00

R $ 1,300.00

TOTAL (F + V + E):

R $ 1,900.00

R $ 1952.00

$ 2747.00

Create goals and objectives

In order to be able to save money and build wealth, it is necessary to create goals and objectives clear who will guide you throughout this process. However, you must understand that both must be realistic, with tangible deadlines and aligned with your financial planning .

After all, it’s no use telling you that you want to buy a house in 45 days if you have no financial reserve , inheritance or active investment for this, do you? So start with your foot on the floor defining your dream which may be to buy one or more real estate, for example.

From there, stipulate how much you can save monthly for that purpose and how much money you have to invest and make your money double. Finally, draw a medium- to long-term period to complete it that will serve as a stimulus for you not to lose heart, lose focus or even give up. During all this, self – control and patience will be key virtues!

Involve the whole family in this commitment

Involve the whole family in this commitment

So far, you have read about how to understand which expenditures are important and which are superfluous, such as establishing good financial planning and even how to outline your goals and objectives. But the truth is that it will not do any good to put all this into practice if you do not involve your family in this mission.

After all, besides their individual expenses , there are the expenses that they have in the routine with food, transportation, leisure, entertainment, etc. Extra costs over which you do not always have control or even know of existence. That is, you may even be able to save yourself, but when you analyze the evolution of expenses and monthly savings, you will see that the result obtained is meager.

Therefore, it must be understood that the commitment to save has to be shared by spouses and children, that building a property is a joint effort.

To do so, it is necessary to establish certain measures that will be followed by everyone , such as reducing purchases of clothing items, promote an economy of electricity and domestic water services, avoiding very expensive family trips, decrease the amount of trips per year and so forth go.

Also, it is interesting to limit the amount of money you give your children. Establishing a fixed allowance per month, for example, they learn how to better manage the amount they have, stop consumer impulses, and even save money by thinking about the future and achieving personal goals. In this way, they become more conscious and financially responsible adults .

Change your habits

Change your habits

To save money and building an equity, it is indispensable to review your financial habits to be sure of those who make you spend excessively and not have control over your money. That’s why, below, we’ve put together some tips that will help you in this process. See what they are!

Shop in sight

The first one is very simple: buy preferentially in sight. Keep in mind that however tempting large installments may be, installments can accumulate like a snowball. So, what were small amounts become a big amount when added up, leaving your monthly budget compromised .

In addition, by opting for payment in kind in stores, pharmacies, the market and other commercial establishments it is easier to get discounts on the price charged for products or services. In other words, you can reduce costs and save more!

Make a shopping list to go to the supermarket

A second tip – which is closely related to the first – is to make a shopping list to go to the supermarket. This is because this is one of the spaces in which we are more susceptible to acquire things that we were not seeking or really need.

Just exercise your memory and you will certainly remember some time when you went into this establishment determined to buy some fruits, for example, and ended up leaving not only with that, but also with soft drinks, canned, salted etc.

So before leaving home, get pen and paper, write down what you need, and see how this simple measure helps you stay focused in the midst of so many distractions and temptations and thus prevents extra and unnecessary spending .

Do not get something just to comfort yourself

On difficult days when nothing seems to work out, “N” problems occur, and that mental exhaustion occurs, many people look for something to help them distract themselves , relax and ease their minds, such as buying clothes, going out for dinner, make expensive rides and more. That is, in small consolations that improve their self-esteem, humor and peace of mind.

This may seem simple and harmless, but you need to avoid this kind of behavior so it does not become a habit. Otherwise, you run the risk of ending up in a vicious cycle of self-consolation for everything that does not go your way, which leads you to spend more than you planned , to blow your budget, and to overturn any possibility financial stability .

Invest in a card with a good loyalty program

Much is said about the fact that a credit card in the hands of those who usually give in to the impulses of consumption and do not have financial control is a great risk . After all, the person is more likely to spend on superfluous things, to make many installments, to delay invoices and, inevitably, to get into debt .

However, if you understand the responsibility of having a card and know using it sensibly and with well-established limits (no more than 30% of the available value, for example), it can be a great ally of your budget .

This is because many banks and financial services companies offer options with excellent loyalty programs . So if you keep only one – thus concentrating your extra spending on it – it becomes easier to accumulate points or discounts on your annuity.d

Avoid redecorating the house in short periods of time

One last tip is to avoid redecorating the house in short periods of time. After all, not a few families have gotten used to doing this every year. While these changes really make the property look better, the great truth is that most of them are not urgent or even necessary.

In reality they are about modifications / substitutions in furniture and decorative accessories. That is, purchase of pieces that are often expensive and soon will be out of fashion, as the interior design launches many trends that are seasonal just to stimulate consumption throughout the year.

So try to increase the interval between one redecoration and another (every three years, for example) and pay attention to what is important : maintaining the structure of the residence, which will avoid future reforms or repairs, right?

Create a new relationship with money

Create a new relationship with money

Beyond all that we have already mentioned, know that you need to create a new relationship with money. In practice, this means not only focusing on restructuring your budget and saving more, but also understanding that the way you consume and honor your financial commitments must evolve . To do so, please follow our suggestions below!

Remove your debts

Getting out of debt is a prime step for you not to keep your committed income month after month and to bear high interest rates – even more so when we talk about those applied by banks and credit card companies – that can easily double your debt.

In addition, this is the only way to no longer have the name protested in a notary’s office and to be disenrolled from credit protection agencies (Serasa, SCPC Boa Vista and SPC) to regain a positive track record in the market.

Pay bills on time

In addition to putting an end to your debts, start paying your bills on time . Remember that frequent delays do not just generate financial burdens. On the contrary, depending on the financial institution, it is possible to reduce its limits and even temporary blocking of the credit card and the balance in the current account.

It is worth emphasizing that care should be redoubled when you decide to take out credit, such as a loan or a financing, since legal charges and attachment of assets may occur in case of non-compliance with the signed agreement.

Learn to save money

Learn to save money

Out to review your financial habits and have a healthier relationship with money, it is of utmost importance that you put into practice some changes in your routine in order to save more and more. Many of these are very simple things that can positively impact your budget. Are you curious? Well take note!

Search for the lowest priced establishments

Do a search to find the lowest priced establishments near your home. This is important because it ensures that when you need a product or service, you shop at the place that offers the best value for money . This measure is valid for supermarkets, pet shops, bakeries, hortifrutis, clothing stores, pharmacies etc.

Also, make sure that these spaces also offer promotions, seasonal offers, exclusive discounts, and reward or loyalty programs, especially for those frequent customers . Thus, you can enjoy more advantages off the rebate in prices.

Make more free programs

Nothing more useful to save than to perform free programs. After all, you relax after a week of hard work, enjoy quality time with family and friends, and do some hobbies without having to spend extra money .

For this, it is enough that you look for such options in cultural centers, art fairs and sports clubs and accompany the programming of musical, gastronomic, commemorative and related events of your city in outdoor areas (such as squares, parks, beaches etc. .).

Take your lunch from home

Another effective change is to stop eating out every day at work break and take your own lunch from home. That is, resort to the kettle – which in recent years has been in evidence and has gained more and more supporters.

The reason? Simple: This is a practical way to reduce your spending , since dining in restaurants, bistros, pastries and the like can be very costly, especially in the long run. Doubt? Well, make the count!

Assuming, for example, that the average of your lunches is $ 30.00 per day and you work from Monday to Saturday, in a month you will spend $ 780.00. A substantial value, is not it? To complete, this measure is excellent if you want to do a diet or are with some food restriction.

Opt for a prepaid mobile phone or control

If you stopped at that time and evaluated how you used your cell phone in the last 90 days, would you say that it justifies paying for a postpaid plan? If the answer is no, know that this is the perfect cue to cancel it and adopt a prepaid plan or control. After all, both have a great diversity of packages and promotional offers for connections (local and long distance) and 4G internet.

However, the best of all is that the cost-benefit is much higher than the postpaid mode, and there is no need for a contract, grace period, charges that were not foreseen and so on. So it’s worth checking how the telephone operators in your city offer both and which one suits your needs. That done, is to make the change !

Buy Generics of Most Basic Medications

One last action you should take is to buy the most basic and never-to-be-missed medications in your home (especially in the winter) as anti-inflammatories, analgesics, antipyretics, and antiallergics in their generic versions .

This is because they are used by your whole family and end up needing to be replaced more often, unlike antibiotics and anxiolytics, for example, which are only indicated in specific cases of diseases and that should be taken exclusively under medical treatment. In this way, you can reduce the expenses with this type of purchase by up to 50% , since generics have the most affordable price.

Make investments

Last but not least, make investments. This is because so far we have brought many suggestions on how to economize for you to realize your goals. But just saving is not enough . Keep in mind that this is the slowest and most idle way to raise money and get extra income – if you save and save a monthly amount on savings, for example.

Ideally, you should expand your options and offer options that offer not only different interest rates but also different levels of risk (conservative, moderate and bold) and term for liquidity (short, medium and long term).

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