As I learn more about finance, about investing, about managing corporate finances, I keep in mind the realization that there is much more I must learn. The world and technology continue to change, and with each change the concepts of investments and the management of household finances change, family priorities change, and in the end we can only continue educating ourselves.

During this time of pandemic, one of my goals not to meet is the idea of ​​doing a kind of financial workshop to educate our community on household finances, how to save and invest, and ultimately how to achieve financial freedom. The perfectionist within me does not allow me to teach the workshop because I want it to be perfect. But personal finances are not perfect, and everyone’s situation is different. So all that’s left is just the simplification of the concept.

What is the teaching on personal finance that is the most important of all?

“You have to spend less than what you earn”

That’s it. That is the key to financial freedom, to be able to accumulate wealth, buy your own home, pay for your children’s education, buy your house on the beach… everything. In order to be successful in household finances, the household has to spend less than the incoming income; and that income can be invested to generate more income for the household.

If you earn very little, find a way to earn more in the future, but do not increase your expenses.

Don’t try to pretend or buy things you don’t really need, just to convince your neighbor that you have.

Don’t take on debt just on a whim, as debt is the antithesis of this phrase. When you owe money, you are giving a bank or financial institution the fruit of your work in the future, without having anything to do with what you bought. This tool should only be used to increase your wealth, not just to satisfy a taste.

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Before you start thinking about where to invest money, you should first know your investor profile. Keep in mind that all investment products have advantages and disadvantages, there are none that are perfect. But if you know your profile as an investor well, it will be easier for you to find the investment modality that best suits your needs.

How to determine the investor profile?

100% safe investment never exists . In fact, profitable investments are often the most risky. This implies that if you are a conservative investor, who does not want to take too many risks, you will not obtain too much return.

If you are an investor with more resistance to risk, you will surely earn more money, but in this case you will also need to have more capital to invest and diversify.

What to invest in if you don’t want to take too many risks?

The average saver who is looking for where to invest money tends to opt for products that, although they do not have a very high return, offer greater security in return.

Today the safest investment products are the following.

• Fixed-term deposits.
• Paid accounts.
• Pension plans.
• PIAs

If you are looking for something with a medium risk and a higher return, your option may be investment funds . You have a wide variety of them to choose from, with more or less risks. The advantage is that a manager is in front of them, so you don’t have to worry about anything.

Decide first the amount you want to invest and define your investor profile based on the risks you want or can assume. Also take into account the objective you are looking for when investing your savings and if the result you want to obtain in the short, medium or long term .

The most advisable thing is not to invest in products that you do not understand, no matter how profitable they may be.

The more complex an investment product is, the more it requires the investor to be aware of possible fluctuations.

Before making your decision, it is convenient that you inform yourself well about the products that interest you and even resolve any doubts you may have about them.

The objective is that your investment gives you returns and allows you to meet your objective, but at the same time be aware of where you are putting your money.

Spend time looking for where to invest money and you will surely end up making the right decision.

As always, remember that the higher your credit profile, the better products you can get. Or products with better conditions. It does not matter if we talk about investment, bank accounts, loans or mortgages.

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The beginning of a year is your own time to start building a more prosperous future. Reflecting on the things that have helped me achieve my goals, here are some resolutions that you could consider to help you achieve success in your personal finances, your business or your work life. Perhaps not all of these reflections are practical for the situation you are in, but I hope you put some of them into action.

The perfect time to start doesn’t exist, take action today

If you are waiting for the perfect day, the perfect Monday, the perfect day to start acting towards your financial goals, this day is today. Wait no more, there is no perfect day in the future. The most important thing is that you start. Whether it’s paying your debts, saving for your own business, saving for emergencies, starting English or computer classes, etc., the time to do it is today. If you don’t start, the probability that you will fail is 100%. If you start, every day that you make yourself win to meet your goal, the odds will gradually go in your favor.

Healthy body, healthy mind, better finances.

Before talking about practical financial resolutions that you could put in place, I want to express one of the most valuable things that helps me survive my busy life of work, family and projects like blog and other companies. I understood a while ago that our mind can make non-existential problems seem like a herd of elephants rushing towards you, or that you fall off a cliff. The answer to this problem is meditation. NO, not buddha-style meditation or anything like that, it’s just breathing for ten minutes and letting your mind find peace. You have nothing to fear, take a meditation or mindfulness course (there are many free, Google is your friend) and explore if this can help you. Many times our paralysis to begin with is nothing more than a mental arrest that we put on ourselves because our natural instinct tells us that we are going to die if we change our routine.

Now here are some resolutions to start improving your personal finances:

Establish a Family Budget

Imagine that you are walking in a forest, aimlessly, without a path, just hoping that one day you can get out. This happens with your money and your finances when you do not have a budget, you do not know what the direction is. There is a chance that you will arrive at your destination by luck (many times it has happened to us); but wouldn’t it be better if you have a compass or GPS? something to guide you and let you know step by step where you are? Well, this is the budget.

A family budget helps you know how much money goes into your home and how much goes out. Knowing your financial status will help you make decisions that guide you to your goals. You will know how much you can save, the unnecessary expenses, and the opportunities for improvement that you may have. There are apps, like Mint, You Need a Budget, and EveryDollar (and there are many more) that you can download to your device. If you’d like to do it on your computer, there are templates for Excel and Google Spreadsheets that you can download (search Google) to help you get started.

Review all your expenses, and make temporary decisions to help you achieve your goals.

This tip is a follow-up to the previous one. Since you have a personal budget. Carefully detail your expenses, and consider eliminating or reducing one of them to help you set these goals. Sometimes it is impossible to spend less, and I understand that, I was there too. The goal is that you at least try to do the mental exercise and try to be a little creative.

Start saving today. There are no excuses.

It is a daring for me to tell you to save because you will tell me that you do not earn enough to do so. I hope you’re not reading this from your latest iPhone or Samsung phone or having a coffee at Starbucks. We all have our hard times, but we won’t get out of them if we don’t save. Our debts and our monthly expenses without saving make us slaves of our financial crisis. The only opportunity to have your financial freedom is saving, spending less than what you earn so that you can use the rest to increase your family wealth.

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