Any time is ripe to take control of personal finances, but every year they start economic and psychological conditions to make a fresh start and initiate important changes in all areas of our lives.
Follow these tips and make a new year’s resolution, now, will revolutionize your financial life and change your mind and, above all, your future.
Transform your finances and begin a year of savings, investment projects and good.
1. Payment of debts.
Clean slate. You can spend a substantial part or your entire bonus to pay off debts. That depends on the amount you owe. The sound financial management is not opposed to people finance part of their consumption through debt contracts, but we do not have to do is borrow at a level that stifle our cash flow and our ability to nullify savings. Healthy is not to exceed 40% of net monthly income.
Another aspect, not least, is to take care that the cost of financing that we will hire is not excessive. The most expensive of all is the credit card that September 30 had a rate ranging between 25 and 75%. Yes, you read that right, 75%.
If we fail to cover the total of your debts, you have two options to ease your financial burden:
a) Establish with your bank for a debt consolidation plan (if you have multiple cards, choose the one that you charge the lower rate). Deadlines to manage financial institutions, when consolidating debts, ranging from 6 months to 3 years, and the rate applied is much lower than a monthly charge. During that time you will pay a flat fee, but at least you know your liability will not go up every month. This is an excellent choice to break free of the most expensive revolving credit market.
b) If your debts are concentrated in cards, hire a payroll or personal credit and settlement in full. These loans have two major advantages over cards: The fee to apply can be up to 50% lower, and their management is very similar to debt consolidation schemes, including fixed payments and interest payments and within what you select.
How to split the bonus:
With healthy finances: 25% for payment of debts, 40% to 35% savings and pampering.
With finances in trouble: 60% for payment of debts, 20% to 20% savings and pampering.
To finance emergency (more than 50% of your income is going to pay debts): 100% payment of debts.
2. Savings and investment.
They say that money calls money, so the first thing to do is have it, and then learn to invest it well. Personal financial liquidity available is basic to start a savings plan that eventually leads us to significantly increase our heritage.
If you have no debts but also investment, spend at least 10 thousand dollars of your bonus to invest in a mutual fund. That you will open a new universe in your life, and that funds not only will you pay good yields (choose one debt first, but then a little later, go for equity) but you will to be taught how to invest. Now if you had to devote all to pay debts, or if you still have but now are more manageable, you can have 10% of your monthly income into savings. In your budget, classify them, and cast it as a fixed expense each month.
Small savings in the long run costs are expensive. Quitting smoking a pack of cigarettes weekly (25 pesos) represent an annual saving of 200 thousand pesos, stop buying coffee (25 pesos) three times a week, 3 thousand 600 pesos, bringing food from home to office until 10 000 800 pesos. Only with this savings you could get started in the field of investment.
3. Invest in your image.
Buy clothes and accessories is to invest in yourself, is your cover letter in the office or company, is a productive expenditure, but only when done with intelligence.
Choose timeless garments in neutral colors so you can combine them with the wardrobe you have.
Another recommendation is to postpone the purchase until January. This month the department stores put their goods with reductions of up to 70%.
4. Annual insurance premiums.
A growing culture of prevention among Mexicans and recognize the need to hedge risks through the purchase of life insurance, homes, autos, education and medical expenses.
In Mexico, insurance is the most used car, although we worry about our health or education of our children. Even the people consider the most important asset is the house, but hardly anyone says. This action becomes more important when we consider that the climate of Mexico and the world have changed significantly and it is likely that this process continues.
On the other hand, inadequate public health care and high medical costs make it necessary to have a major medical expense insurance to protect us from any and substantial medical expenses.
Another basic insurance is educational. It is advisable to buy as soon as possible when you have kids or even before they are born because this way you will pay a lower premium and comfortable.
5. Add value to your property, invest in your home.
All to serve ends, and as can decompose the car or washing machine (for what should certainly be having an emergency fund); the house also requires regular painting we apply new or renewing pipes. Why invest in your house, as to protect or increase their value or capital gains. You can also invest in changing the furniture by green plants, which means significant long-term savings.
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