Financial planning is an important way to protect your basic day-to-day needs and find ways to make personal projects possible. For example, buying a property, a trip, opening a business, among others.

It is made from some pillars such as discipline, organization, strategies, observation of long term goals, in order to find in which points it is possible to minimize expenses and save in your daily activities. Therefore, it is essential to do it efficiently.

Do you know how to start? I have brought 5 actions that can be applied in your business to remove your doubts on the subject.

The importance of financial planning

How many dreams and goals do you want in the long term, but they are difficult to fulfill because they require a high financial investment? For example, to invest in a private retirement, open a business, make a trip, acquire a property, among other things, which can only be realized when you have a good amount in hand - or decide for financing.

Regardless of your choice, it is necessary to plan so that you can accomplish your goals and, at the same time, maintain your financial health. This way, you can keep honoring your commitments and avoiding risks of getting into debt beyond what you can afford.

With this, you can achieve your dreams in two, five or 10 years, without major difficulties. In other words, think about where you are and what you want to get to, and know that it is possible, yes, as long as you can make a planning, in fact, efficient.

5 financial planning actions to put into practice

But how to achieve actions that lead, in practice, to greater efficiency in the act of planning? For this, I brought 5 fundamental actions to apply in your day by day and achieve better results. Check below.

1. Learn how to save money

Saving money is not just about saving up the amounts left over at the end of the month. It is essential to identify, mainly, how to reduce your monthly expenses, without compromising your routine and improve the flow of saved money.

For that, it is important to consider some valuable points, such as:

  • pay your bills in advance, if this generates discounts;
  • avoid extravagances and superfluous purchases;
  • Check what is really urgent and emerging to acquire at the moment;
  • Create a reserve fund so you don't have to rely on your money saved for other purposes;
  • identify your fixed and variable expenses and avoid their exponential increase;
  • Make a list of what is expendable;
  • set a goal to save per month.

2. Learn to invest

One way to maximize the results is to invest the amounts saved, so that they can generate more income over time. Each person has a profile, which should be analyzed, before making this decision.

For instance, there are those who are more cautious, and should invest on more secure funds. Others are bolder and allow funds that generate more income, but are more risky.

In face of this, it is fundamental to study about the subject, or else, to count with a consulting company able to manage your investments.

3. Set your goals

To know what your financial planning should be like, it is essential to determine your objectives. What are your plans for the coming years? What do you want to do in the short, medium and long term?

Answering questions like this, as well as making sure what your standard of living will be in the future, is fundamental to identify the type of planning to be performed. For example, higher goals, such as a considerable increase in quality of life, will make you have to sacrifice a little more today.

Smaller goals lead to less need to save and, consequently, your goals will be achieved more quickly. Therefore, it is essential to identify what the needs and the time you wait to conquer these dreams are.

Remember that they must be achievable, within a consistent planning. For that, it is important to have the details well defined: for example, do not think "I want to travel abroad". Think "I need to have the value X to make the trip abroad".

4. Control your finance situation

Do you know what you spend today? If you were now asked "what percentage of your salary is spent on delivery," would you know the answer? If not, then it's time to start changing it urgently.

With this, you can identify what are the fixed and necessary expenses, and the eventual and superfluous. It also allows you to understand how some fixed accounts may be occupying a good part of your budget.

For example, if your fixed expenses exceed 50% of your salary, it may be an option to find ways to cheapen the bills, opt for a lower rent, among other points.

Several applications can help with this, as well as spreadsheets. But remember: for it to work, it is essential that you maintain the discipline and record each data continuously.

5. Have discipline

Perhaps this is the most difficult point to be accomplished, but the most important to be applied. Discipline is fundamental if you are to achieve your goals and keep your finances on track.

For example, it is tempting that you want to divert the focus of opening your business by seeing that, with the value saved, you can make a trip abroad. But remember your previously proposed goal. It will be worth it to remain determined in the end.

The loan as an option in financial planning

Many people consider loans to be more damaging than advantageous for their long-term financial planning. Therefore, it is essential to know when to use this artifice.

This is the most recommended option when you want to pay off a debt, so that you will pay back less for the loan, either monthly or in the total amount. To do this, it is important to evaluate the interest of your current debt and what the values would be like in the case of the loan.

In all other cases, when possible, it is fundamental to count on financial planning in order to be able to pay off your bills and win your dreams. Following the tips I've raised here, I'm sure you'll be able to reach your goals with more peace of mind.

Do you have any questions about this content? Or would you have more tips to complement it? Leave comments here!

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