5 Measures So That Your Financial Situation Is Not A Concern

Financial status is one of the issues that sometimes assumes disproportionate importance. We all know that there are more important things, but the truth is that when the bills for the end of the month arrive, the subject has no variations. Either you pay, or you pay. If month-end bills aren’t an issue, sometimes it’s the fact that you want something that seems too hard to get. No matter how hard he tries, he sees the goal too far away. The budget stretches and still everything remains in the desire.

It is clear that there are cases of those who buy everything they want, but they always remain on the brink of bankruptcy. There are really few who never have any headaches with finances. It’s a matter that dominates us and sometimes doesn’t leave us alone.

However, problems usually don’t occur because of the amount of money you get or don’t get. The crucial point is how to manage it. There is only peace of mind when certain fundamental aspects are guaranteed. You can always exercise better control over your financial situation, and here are five ways to do that.

1. Save money, the basis of a good financial situation

It’s hard to talk about economics at a time when consumerism has reached its extreme. In fact, they don’t talk so much about their wealth, but what their consumption capacity is. We are bombarded with offers, promotions and invitations to spend money all the time.

Saving up is basically a habit that is also essential to achieving a stable financial situation. Economists specify what the value of that savings should be: 10% of income. If you think that those 10% never belong to you, that they are like a tax that you have to pay, everything will be very easy. You must not spend this money for at least a year. You may be surprised at how effective this will be in getting what you want and what you always want.

2. Have an emergency fund

Often a good financial situation collapses due to an expensive eventuality. Unexpected damage to the home, illness or an emergency trip are the most common unforeseen events.

That is why it is necessary to create and maintain an emergency fund. Again, economists have an answer to the question of how much to allocate to this fund. They say that 5% of income is adequate. In this case, you must also assume that this money does not belong to you. Imagine that it is a debt for your well-being that you have to pay month by month.

3. Guarantee your pension

This is a measure on which we should especially insist on younger people. At an early age, old age seems to be non-existent. But it exists and it can arrive with all its vigor, putting you in a position of extreme vulnerability.

Currently, we do not always find jobs with all the guarantees of a pension. If that’s your case, you should invest in a fund or make additional savings for old age. There is also a percentage for this: 15% is recommended. And, if possible, more. Relying on resources in the last phase of life is priceless.

4. Keep a monthly budget

In order to have a stable financial situation, it is necessary to have a monthly budget. It is very important to know how much money we earn and how we spend it, especially if your income is not fixed. Keeping a record of accounts can be tedious, but it’s absolutely necessary.

Based on what we’ve said, from your monthly income you should deduct 30%. The rest is what you can really consider spending money. Some may think it’s too much, but if you look closely, it’s mostly a matter of habit. It is known that, sometimes, income increases or not even enough. This is due to lack of discipline with the budget.

5. Don’t buy impulsively

Let’s go back to the beginning: we are in an environment in which we are urged to consume all the time. Many ads are aimed at making impulsive purchases, so they offer us great attractions to overcome our resistance.

Without realizing it, you often end up buying things you didn’t really need. And worse: things you didn’t really want. You simply let yourself get carried away by the 70% discount, or by a consumer fashion that doesn’t do you any good.

Although it doesn’t seem like it, money has a lot to do with psychology and organization. Its meaning, its use, and the consequences of it are matters that are much more in the mind than in objective reality. Having a good financial situation is decisive for peace of mind. You must adjust things so that money doesn’t steal your sleep.