Learn how to organize your personal finances more efficiently (apart from the obvious) and improve your conditions for wealth growth and well-being.

17 Strategies (that go beyond the obvious) to successfully organize your personal finances!

Do you know the perfect time to talk about your personal finances?

Right now ! Whether you’re swimming in cash or with a higher credit card bill than you could afford.

That is, it doesn’t have to be at the beginning or end of the year, although some events in your financial life are directly related to the annual calendar. The time is now.


The time to organize your personal finances is now!

The best thing is that it is exactly when you have all the excitement (or at least the conscience) to organize your income and expenses.

And this is where we break the first myth about personal finance: when we organize it, we are not just talking about separating a part of the salary and investing or, cutting unnecessary expenses.

I know and you know these things are too simple, right? So, let’s make a deal from this exact moment of your reading: I’m not going to bring too many basic tips or, as they say, “that it rains in the wet”.

In this material on the control of personal finances, I will bring strategies, best practices and methods that financial education recommends as essential for those who want to have a healthy and prosperous financial life.

Like the idea? So, come with me to look at each of these best practices on the list.

1. Diagnose your personal finances

Our kick to optimizing your personal finance management is to make a good diagnosis of the current situation.

The lack of financial planning can bring serious problems to people’s lives, but those who do not know their sources of income and expenses can also be in trouble.

  • Those who don’t have control over their own money end up:
  • spending more than you should;
  • getting wrapped up in debt, interest;
  • worsening your situation more and more, until you ruin your personal and family budget completely.

How to assemble your personal finance diagnosis

So, in your financial diagnosis, you will list your sources of income:

  • fixed , such as the salary you receive or the number of clients you have as MEI, for example;
  • variable l, which is the case of commissions, Profit Sharing (PL), bonuses, night hours, unhealthy work;
  • passive , which are those in which there is no direct effort to generate them, as in the case of investments that generate profits;
  • extra , which you make over the internet , occasionally or any other related situation.

It will also list your financial expenses and obligations:

  • fixed expenses , such as rent, condominium, school fees, internet package, cell phone etc;
  • ongoing loans, financing or consortia ;
  • variable expenses , such as supermarket, fuel, water, electricity and other consumption bills;
  • taxes and taxes , such as IR, IPVA , IPTU , licensing, cleaning fee, professional records etc.

2. Don’t forget about municipal, state and federal taxes

Most of the time, we forget about taxes until it’s time to pay them. So, we suffer for having to pay in installments and forfeiting the good discounts for cash payments, right?

So, don’t forget about the regular taxes and levies you pay annually when making your income and expense survey.

After making this diagnosis, including using realistic values ​​(for variable income and expenses I recommend an average of the last months or years), you will see that it is more advantageous to provision your payments than to pretend they don’t exist.

3. Clear your name and/or renegotiate your debts

With your personal finance diagnosis, take the expenses and commitments that affect your budget the most and try to renegotiate.

Even if the bills are not overdue, it is possible to look for cheaper interest rates that will lower the monthly amount of the installments.

In this attempt, it is worth consulting the financial institution where you have the current credit agreement and also your competitors.

By the way, don’t limit yourself to traditional banks. Many fintechs offer interesting and cheaper lines of credit .

However, if you have a dirty name in the market, renegotiate your debts as soon as possible. This hurts your credit score now, and in the long run as well.

Not to mention that, while your credit agreements are late, interest will be accumulating, further increasing the debt.

4. Save a portion of your income every month

I know, I promised I wouldn’t list the obvious, and saving some of your income is pretty basic good practice.

But it is still necessary. Besides, I’m going to take her out of the obvious right now and show her that you need to do this with a strategy for the health of your personal finances.

So, first point : it’s important that everyone starts building savings as soon as possible.

Starting to save as soon as possible helps to accumulate more

If you haven’t already, don’t waste any more time: set a portion of your income to be saved monthly or take the 52-week challenge .

In the beginning, it doesn’t have to be a lot: but keep in mind that the recommended amount is between 10% and 30% of everything you earn per month.

This way, you will have greater security within your financial planning.

Also, if you want to achieve financial independence someday, you should always focus on paying yourself first and creating investment regularity.

5. Set investment goals in your personal finances

Another interesting point of starting to invest a portion of your earnings is that this will turn into a habit. And this is very interesting for strengthening your personal finances.

One way to encourage these savings is to set goals .

Clearly define what you want to do with that money and start saving as a result.

For example, if you  want to save money to pay for your child’s tuition when he is 18 years old, you should start saving early, applying a certain amount each month to a long-term investment that will pay off until you complete the necessary amount. .

6. Avoid debt and always buy in cash

If you have any debt, work to get rid of it as soon as possible!

Negotiate better terms with the bank to pay it off and, if you are on a tight budget , prioritize the payment of those with higher interest rates.

Try not to shop on credit to avoid being held hostage by interest.

Always prefer to buy in cash instead of in installments, as paying immediately you can negotiate a discount and save the amount of an installment that would drag on for months.

Also, avoid using overdrafts as much as possible.

And, if using a credit card or taking a loan is unavoidable, do some research first to find out what the terms and interest are, in addition to fees and the Total Effective Cost (CET) of the transaction.

If you are in debt, be sure to read the article:  How to get out of debt quickly: 7 simple and very effective steps!

7. Understand what interest is

If you want to do good personal finance management, you need to understand the rules of the game, who are the bad guys and good guys.

Knowing how each financial element works is important for good management

In this sense, interest always raises doubts. After all, if you use your credit card and pay the bill on time, they don’t apply, right?

But, calm down, that’s what I’m going to explain now.

When you research the purchase of a refrigerator, usually the store offers the value in cash or in installments, without interest for a few installments, or with an increase when the number of payments is greater.

So, if you choose the longest installment, you are choosing to pay the store’s installment interest .

If you pay for the purchase with your credit card and don’t pay your bill late, you’re fine.

However, if you forget to pay the bill, make the minimum payment or pay this bill in installments, you will pay interest again, now on the revolving account .

What about the loan offered by the credit card or credit card at the store? There are also installment interest payments, that is, they remunerate the institution that is offering the credit service for you!

So, recapitulating, in credit operations, the interest can be:

  • the installment payment;
  • for delay (which is also accompanied by a fine, which is even worse);

We still have the interest on investments, which in this case, are the investment income. But let’s talk about it later.

8. Have an emergency reserve

Don’t forget that unforeseen events can happen at any time.

Therefore, it is important to set aside part of the monthly income to create an emergency reserve . If you don’t have one yet, this should be your first financial goal.

It will be useful for situations where you need to use the money urgently, as in health cases, for example.

By safeguarding your personal finances in this way, you’ll have more security and won’t need to take out loans .

9. Find out how much you spend per month

Saving every month, avoiding debt and creating a safety reserve are fundamental actions.

However, it’s impossible to organize your finances if you don’t find out exactly how you’re using your money and how much you spend each month.

It’s different from the diagnosis I proposed at the beginning, ok? In that case, let’s find out your monthly cost of living .

With this information, you will be able to assess whether you live beyond your means, for example, and with this vision, you will be able to promote sustainable spending cuts (let’s talk about them too!).

So, strive to keep a continuous record of everything you spend.

There are several ways to do good financial management, such as:

  • Personal financial control apps ;
  •  ;
  • and even a sheet of paper.

Many people consider personal finance apps a great option, including me, because they are very intuitive and are on the smartphone, which makes the process of recording expenses and income more practical, avoiding forgetfulness.

However, if you find the spreadsheets better, put all your expenses for the month, such as: food, health expenses, basic bills (water, electricity, telephone), installments and bills to be paid, leisure expenses, monthly fees, etc.

The important thing is to list absolutely everything that is an expense , no matter how small, and register it, even if it is in the good old notebook.

10. Choose your financial tools wisely

As I always say here, the credit card is not your enemy. And now that you know how interest rates work, that’s even clearer.

In fact, nowadays, he can be a great friend! In addition to cards without annuity , which is one less expense to have access to an interesting credit tool, we still have other benefits they offer, such as:

  • cashback ;
  • frequent flyer programs;
  • additional services.

So, I recommend that you choose which cards you will use very wisely, both to manage the “best purchase day” for each one, as well as to accumulate miles and cashback, which is money coming back to you.

11. Cut unnecessary expenses (but efficiently!)

If your monthly income is less than or close to what you’re spending, make a careful analysis of your budget and see where you can make cuts.

Do this through a priority scale: spending on entertainment and leisure, for example, can be reduced and exchanged for cheaper or even free activities.

Prioritize essential expenses such as housing, health and food.

How to Efficiently Cut Spending on Your Personal Finances

But, before you start cutting any and all accounts, know that you have to do this very carefully.

This goes for any decision in your personal finances, whether small (such as reducing the package/internet speed of your home), or more robust, such as getting out of rent and going for a mortgage .

Cutting a data plan in half, for example, can cut a big lump sum on your monthly expenses.

However, if this increases the use of additional packages, which tend to cost more, the saving strategy will be ineffective.

Exchanging one expense for another, such as rent and finance, also requires you to analyze other variables. If you have to change your address, for example, this may involve changing other expenses such as commuting to work, food in the neighborhood, payment of IPTU, etc.

12. Curb your consumer impulses

People often buy on impulse without thinking about the damage it can do to their pockets at the end of the month.

Therefore, avoid consumerism : before spending your money, assess whether it is really necessary and whether the value will fit within your budget.

A good way to control this is through a list : every time you go shopping, write down what you need and only buy what is written there.

do not buy on impulse

This will prevent you from bringing what you don’t need and, as a result, you will save.

For you to have a good management of your personal finances, it is important to understand that the consumer market has evolved a lot.

Thus, making a purchase is much easier and faster. You don’t even have to think too hard, that’s where danger lives and promotions often exploit.

These are called mental triggers, stimuli aimed at the brain to make automated and urgent decisions, without a decision-making process that assesses the characteristics of the off.

13. Invest correctly what is save

To manage your savings intelligently, you have to make it work, as it won’t do any good to add an amount if it remains stuck “under the mattress” or in the “Savings book”.

Therefore, it is important to always invest your money in an investment that will provide you with income.

If you have a more aggressive investor profile, prefer riskier investments , such as investing in stocks , for example.

If you follow a more conservative line, it is recommended to opt for safer and more stable applications, such as CDB and Tesouro Direto .

Bearing in mind that with the current scenario of low interest rates, fixed income has lost a lot of its attractiveness.

To seek better returns, it is necessary to look for variable income investments. In this sense, a middle ground are real estate funds .

However, don’t forget that you can’t think about diversifying your investments until you’ve built your emergency fund.

If you follow a more conservative line, it is recommended to opt for safer and more stable applications, such as CDB and Tesouro Direto .

Bearing in mind that with the current scenario of low interest rates, fixed income has lost a lot of its attractiveness.

To seek better returns, it is necessary to look for variable income investments. In this sense, a middle ground are real estate funds.

14. Always check how you are doing

Check your progress each month.

Check if your finances are going according to plan.

If not, do a reassessment and determine what needs to be changed.

This not only helps keep your money in order, it also helps you figure out what’s wrong more quickly.

15. Think about the future of your personal finances

You may have already realized that managing your personal finances is an exercise that focuses on a healthy balance between your expenses and income, right?

You’ve also seen that it’s okay to use lines of credit to increase your wealth, resolve financial situations, as long as you do it in a healthy and well-planned way.

So now we’re talking about another fundamental point of personal finance: you need to think about your future.

If you work with a formal contract, you will have a social pension, but you cannot be sure if it will be enough for your expenses and needs.

That’s why it’s worth making long-term investments, as well as avoiding long-term loans and financing.

So, when organizing your investments, think about dividing your contributions into short-term (emergency reserve, which we’ve already talked about), medium (real estate, courses abroad, etc) and long-term (retirement) plans.

16. Make peace with financial products

Some people even cringe when they are offered life insurance or think that car insurance is a waste of money. Do you know someone like that.

These products, as well as the consortium, end up generating this type of reaction because they are not well explained. Those who hire sometimes do this to end the seller’s insistence or to “help” him reach his goal.

Don’t worry, I know this is one of the arguments of many salespeople and bank managers.

But let’s be clear, these financial products are of great importance in managing personal finances.



























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