Organizing your personal finances Organizing personal money is a significant difficulty for many individuals, particularly those who work for a CNPJ and must simultaneously manage the company’s finances.
However, it is a critical duty since a lack of preparation may lead to major difficulties such as rising debt, wasteful spending that reduce income, and so on.
To avoid this, you must invest in excellent financial management of your money. This allows you to worry less at the end of the month, in addition to additional benefits such as the ability to invest and quadruple your cash, take a vacation, change automobiles, and so on.
List of 9 quick ideas to help you Organizing your personal finances:
- make a budget;
- set goals to save;
- restrict spending;
- avoid unnecessary expenses;
- stay out of debt;
- set aside an amount for annual expenses;
- have an emergency reserve;
- separate personal and professional accounts;
- use technology to your advantage.
1. Make a budget
Organizing your personal finances Make a note of all your fixed expenses, such as water, energy, phone, and rent. Then figure out what the average monthly cost of all these expenditures is. Your cost of living is the value discovered.
It is important to remember that this sum already commits a portion of your monthly income, so you must continually watch your future spending to ensure that everything goes as planned.
The remainder is what you have available to invest in variable expenses, make investments, or set aside as a financial reserve.
2. Set goals to save
Savings cannot be accomplished just with money left over at the end of the month. It must be a goal so that you can not only track your spending but also make financial projections.
To do this, you may put aside a monthly amount and, when you get your paycheck, immediately deposit this money in a separate account from the one you use for everyday needs.
3. Restrict your day-to-day spending
In the same manner that you should create savings objectives, you should also set spending goals, creating a monthly maximum limit for each category of cost. This divide may be done by category, for example:
- 15% with supermarket;
- 10% with leisure;
- 5% with clothing and other accessories.
This does not imply that you should spend this amount every month, but rather that it is the maximum amount you may invest in each medium. This is a significant step forward in your personal money organisation process.
4. Avoid unnecessary expenses
It’s easy to analyse what’s vital and what’s not in your personal budget when you know where your money is going. You’ll be able to avoid devoting your paycheck to costs you can’t afford.
When purchasing anything, consider if you can afford it and whether it is really essential. The will sometimes talks louder, but you must restrain yourself since it is better not to have it than to get into debt.
If you have more than one priority but can only afford one, prioritise the most important. It is sometimes essential to think about certain topics.
How about you cut down on frivolous spending so you can invest, save for a more tranquil retirement, or save for something you truly want? This has the potential to be incredibly intriguing!
5. Stay out of debt
Organizing your personal finances If you don’t have any debts, you’re already on the right track when it comes to managing your personal money. However, if you do, this is the first issue you must address in order to handle your finances.
Overdue bills incur additional expenditures in the form of penalties and interest, as well as the loss of the opportunity to save and regulate yourself. In these cases, all of the money that comes in is spent on bill payments, and the primary goal becomes debt repayment.
You might attempt to renegotiate or disperse the debt in order to get rid of this “stone” in your financial organisation effort.
6. Set aside an amount for annual expenses
Most individuals make the mistake of focusing just on monthly costs and failing to account yearly fees such as IPVA, IPTU, and insurance. These costs become an issue when they are not planned, since if you do not prepare to pay them, you may find yourself in a bind when they arrive.
As a result, it is prudent to put aside funds for these costs throughout the year. One solution is to put aside a certain amount of money each month for them.
7. Have an emergency reserve
Unexpected events might occur at any moment, so be prepared. The goal of setting up an emergency fund is to prepare for unanticipated situations such as contract termination, health difficulties, and automobile repairs, among other things. In times like these, financial piece of mind is essential, and the emergency reserve provides that.
8. Separate personal accounts from professional accounts
Anyone who is in charge of finances must do so. However, if you are also a legal entity, you must exercise particular caution. Personal accounts should never be mixed with business accounts, and this extends beyond the problem of organisation.
If you mix these accounts and use your personal income to pay off the legal entity’s obligations and vice versa, your accounting will be jeopardised in addition to having major ramifications, such as the inability of financial planning for the firm. This is due to the fact that every CNPJ is required to do bank reconciliation, which is the verification of the PJ account’s bank statement with the company’s declaration of entries and exits. The account does not shut when personal and professional money are mixed.
To prevent this issue, create two separate bank accounts: one for a person and one for a legal business. This prevents the bills and income from combining.
9. Use technology to your advantage
Organizing your personal finances There are various programmes on the market that may help you organise your personal money in your everyday life. This makes it easy to keep track of and handle all of your normal costs. GuiaBolso is a nice example.
This will help you to see which amounts are being spent excessively, allowing you to reduce them. The most essential thing is to learn to manage your finances, save, and take better care of your money.
To manage your CNPJ finances, consider migrating your accounting to Contabilizei and automating invoice issuing and bank reconciliation.
Did you understand how important it is to organise your personal funds and keep them separate from your business accounts? So, put these suggestions into action right now. You will have a more serene financial life and will be able to attain all of your objectives as a result of this!