Financial Discipline: Here’s How to DevelopOn December 26, 2019 by admin
Do you know the importance of financial discipline? As much as many Brazilian families strive to develop such a plan, most simply cannot get it off the ground. As a result, achieving goals is much more difficult. The result comes in the form of program frustration and abandonment.
The subject gets even more serious contours when we consider that many of the diseases and ills that afflict modern humans are related to the quality of their mental health. And, as we know, the balance of the mind also depends on the balance of finances!
Given the importance of the subject, we decided to dedicate today’s post to discipline, a topic little discussed, but very important to those who want to change their lives. Check-out!
How to have a quiet financial life?
A peaceful and balanced financial life is a very important factor for mental health. Getting family spending to fit our budget and still being able to spend some of our income thinking ahead can avoid stress and anxiety and make us feel better.
To get there, the first step is to create good family financial planning, by breaking down all household income and expenses. With this diagnosis in hand, the next step is to set goals and objectives to be met, such as reducing expenses by 10% within 3 months.
After that, it is important to think about the income of these savings and also the protection of family assets. That’s where investments and insurance come in.
Finally, as it should be, the final step is to take financial planning off the ground and begin to effectively implement the outlined strategies. And that’s exactly what we’ll talk about next.
What is financial discipline?
Financial discipline is an essential quality for the proper execution of financial planning. This is what makes us resist the temptation to buy the newest object of desire of the moment in exchange for a much more rewarding goal in the future, such as the study of children.
It is also the discipline that makes us research and study about the best financial investment options for our profile, even after a tiring day at work. We can therefore say that discipline is a key element in achieving financial goals.
It is very important to know where we have to cut expenses and where we have to invest resources in order to maintain or increase the family’s purchasing power and quality of life, but it is worth absolutely nothing if we do not deliver on these promises.
And how to achieve financial discipline?
With all this in mind, we have separated a set of valuable tips for those who are finding it difficult to stay on course. Follow and get back on track!
Write down all expenses
Usually the big villain that keeps us from having a sustainable financial life is overspending. Most of the time, we end up spending more than we can simply because we have no idea how much we have spent and how much we still have for the rest of the month.
So this does not happen to you, the big tip is to write down all the expenses, without forgetting, of course, the small expenses. After all, they can represent a large chunk of liabilities.
You can do this in a notebook, spreadsheet or even by downloading a financial app that offers this functionality. Some people also use the smartphone-tactics of taking pictures of bills, invoices, and products before feeding the spreadsheet, not to forget.
Motivate and mobilize the family
Many financial plans end up not working out of sheer lack of motivation. So that doesn’t happen to you too, it’s always good to try to periodically remember your goals.
It is much easier to stop eating a delicious sandwich or buying a state-of-the-art smartphone when we realize that all of this is being done for a bigger reason, whether it’s traveling the world, opening your own restaurant, funding your children’s studies. or helping your parents. , for example.
The same goes for the whole family, especially the kids! As they are not yet mature enough to understand the importance and necessity of family planning, the tip is to try to engage the children with play and challenges.
Avoid forward purchases
One of the biggest tips for saving on shopping is, whenever possible, to make cash payment. Think about it: When we pay off credit cards, we are usually paying a built-in interest rate. So much so that most stores offer discounts of 5% to 10% when payment is made in cash and cash!
If your goal is to cut costs, then you have to start by avoiding interest, financial charges, administrative fees and late fees, expenses that simply give nothing in return.
Another good reason to avoid installing purchases is that in this case you end up blocking part of your budget for the following month (and the rest)! If you parcel an item 10 times, for example, you are blocking part of the budget during that entire period.
Take care of your health
Healthcare and medical care are usually the biggest expenses we have in our lives. But of course, when it comes to health, we can’t give up the best. And the truth is that we are all subject to illness, illness or an accident.
In this scenario, we must remember that we can save a lot of money simply by practicing healthy habits, such as balanced diet and regular exercise. This makes all the difference since preventative treatment is much cheaper.
Have you ever wondered if you follow all the tips we just gave you for a few years can save good money and apply it in a profitable investment but end up needing to spend the whole amount because of some unforeseen?
It is not for any other reason that insurance is considered one of the pillars of financial planning! Over time, we realize that there is no point in increasing the family’s assets without protecting them.
Life is full of risks. Suddenly, a family health problem or a car engine fire can put years of financial discipline and hard work at stake. Better beware, don’t you agree?
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