Starting the year in the blue can be a challenge for those who tend to spend more during the recess and holiday season. But it’s nothing that good financial planning can’t solve.
Experts consulted by CNN highlight that organization is paramount – and should be done throughout the year. So, if you didn’t have time to organize yourself financially now, write down these tips to start 2024 with a more comfortable situation.
1. If you have debts, look for lower interest rates
First of all, identify the profile of the debts and how much interest you pay on them. The ideal is to check whether it is possible to exchange more expensive debts for cheaper ones, points out Rodrigo De Losso, professor at the Department of Economics at FEA-USP.
“It is possible to check with the bank if there are personal loans at lower interest rates”, says the specialist. The exchange is ideal, for example, in the case of credit card debt or overdraft, which have the highest interest rates.
If there are several types of debt, the idea of borrowing can also concentrate them in just one point and facilitate payment, points out the professor.
Another way out is to “increase the installments to reduce the amount paid per month to something possible”, he adds.
2. Negotiate and be realistic
As for those who have no money or have lost their jobs and are unable to pay off their debts, it is necessary to be realistic and check how much it will be possible to pay, says Ricardo Teixeira, coordinator of the MBA in Financial Management at FGV.
When talking to creditors, the “negotiation needs to be done well, so that you can comply”. Otherwise, he points out that there will be fines and penalties, which would increase debts.
For those who have thirteenth and, in some cases, vacations, this is the time to use these resources as a “lever to get back to blue”, Teixeira highlights.
Another tip he gives to escape debt interest is to sell goods. “Dispose of assets to stop paying interest”.
3. Write down everything you spend and receive
After checking the debts and trying to settle them or reduce their interest, the ideal is to organize your entire financial life so as not to fall into more excessive expenses and maintain good management of resources during the year.
The first step is to write down all the bills and income for the month, points out Teixeira. So, check the money that comes in, salary, earnings from abroad, for example, and what needs to be paid, such as water, electricity, telephone, taxes, food expenses and debts in installments, whether by credit card or loan.
Another important point is to understand which expenses or earnings are seasonal. “Case of the end of the year, which has the parties, the 13th, the holidays, and, at the beginning of the year, school supplies”, highlights De Losso.
4. Do financial planning
After collecting the financial information, organize it in an Excel spreadsheet or even in a notebook.
Business professor at Faculdade Presbiteriana Mackenzie Rio, Agostinho Varandas, says that the use of applications can greatly facilitate financial planning, such as Money Lover, Minhas Economies, Wallet, among others.
“For those who don’t have much knowledge, it might be more interesting to use one of these applications because they already include the main expenses and there’s only work to add what you plan to spend”, he adds.
5. Update the spreadsheet monthly
In order not to fall behind the budget, the ideal is that the planning is done at least once a month. Thus, if bills arise outside the planning, it will be possible to make the necessary adjustments, explains Varandas.
“So, as we monitor the behavior on a monthly basis, we will arrive at the end of a period and analyze whether the budget worked or not, if we managed to reach the spending target, as planned. If I can’t reach it, I’ll have to redo the budget”, he emphasizes.
6. Make a reservation
After organizing the mess, some actions can be taken to keep the bills in the blue, beyond planning.
Experts agree that it is also important to have a reserve for unforeseen events – in case there is a need for an urgent purchase, for example. “You have to take a break. At least 20% of what is left over from the budget should be reserved for emergency situations”, points out Teixeira.
Regarding new expenses, unless it is an extreme need, such as breaking down the car or burning the fridge, De Losso advises paying in cash. If you don’t have money, purchases of superfluous goods should be avoided.
Or if you want to buy them, such as a TV, the ideal is to pool the money and pay with discounted debit. “Credit card only if you can pay on time”, warns De Losso.
The professor also explains that renegotiating pay TV, internet, cell phone debts, among others, so as not to pay more and involving family members in planning, with help in researching more advantageous prices, also helps to maintain financial health.
*Under supervision of Ligia Tuon
Source: CNN Brasil
A journalist with over 7 years of experience in the news industry, currently working at World Stock Market as an author for the Entertainment section and also contributing to the Economics or finance section on a part-time basis. Has a passion for Entertainment and fashion topics, and has put in a lot of research and effort to provide accurate information to readers.
