The subject of personal finances describes how the individual relates to the management of money and finances and frames a concept of paramount importance, due to the implications it has at a financial, psychological, family and social level; even recently it has begun to be considered determining in the behavior of the world economy, among others. However, despite its importance, it has not been structured in a general way as an important knowledge in the field of education, finances and the preparation of the individual to face economic life and to prepare his or her future and that of others. theirs.
The beginning of a new year is always ideal, not only to analyze the mistakes of the past, but also to set new financial goals and leave behind old purchasing or consumption habits that prevent you from moving towards financial independence.
One way to get off to a "good start" in 2022 is to organize your personal finances and define a savings plan that suits your needs as a saver or investor, depending on the goal you want to achieve in the medium or long term.
Therefore, defining your goals, setting a time frame for what you want to achieve, setting the cost, calculating how much money you need to save each month, comparing it to your budget (after making it) and prioritizing it will be vital to meeting your goals and making the right decision. control of your money.
Importance of personal finance
The importance of managing your personal finances well is that it allows you to have a stable economy, with savings capacity and without debt problems. This allows you to achieve different goals depending on your stage of life, such as: paying for your studies, buying a house, starting a business, taking care of your health and/or retiring.
The process of working and achieving each of your projects and goals generates happiness, satisfaction and peace of mind. Here lies the importance of acquiring the knowledge to intelligently manage your personal finances.
Among the guidelines to follow to achieve your financial purposes in 2022, the following stand out:
- Make a budget. Based on your income, prepare a budget that includes each of your expenses. Remember that these cannot exceed or equal the total money you receive.
- Cut and reassess expenses. Make a list in order of priority and eliminate those that represent a drain on money.
- Save. Allocate at least one 10% to saving your income. Savings will allow you to achieve your goals in this 2022 and years to come.
- Find new sources of income. This will help you have greater financial comfort and allocate more money to savings.
- Avoid over-indebtedness. Before applying for new credit or increasing the use of available credit, analyze current debts to avoid getting out of control.
- Invest. Diversifying your income is an extra value that will allow you to have greater stability and financial security against inflation.
Having good management of your personal finances does not mean becoming obsessed with money or becoming stingy. It is simply realizing that you should not take things for granted. In every decision you make in your life there are alternatives. Every time you buy something, there may be a product with. The same quality or better and cheaper. When you have a job, there may be another job that is more interesting and better paid. Of course you are not going to compare every cent of every product you buy or change jobs every two months, but it is not good that you always accept things as they are, get out of your comfort zone and take control of your personal finances .