personal finances: 9 proven tips for fine-tuning it .

Personal finances are really a fundamental issue in our lives. How well we manage them determines, in part, our quality of life.

There is no denying that if we want to have a life without financial burdens and, of course, without the stress that this generates, it is essential to learn how to manage our money well.

Moreover, it is a subject that accompanies us all our lives, before we are born and even after we die, or at least that is what Sofia Macias Aguilar states in her book Little Capitalist Pig.
So having an adequate personal economic management is the difference between having good monetary solvency (throughout the year), that is, healthy finances, or arriving (throughout the next year) always just at the end of each month.

Therefore, we give you some tips that could help you better manage your finances, have an excellent economy and therefore greater economic welfare .

Boost your personal finances

1. Learn to save

Most of us are not taught to save, for many Latin Americans we do not have in our “DNA” the culture of saving.
In fact, according to the IDB, it only saves 18 percent. But that’s no excuse for not learning how to do it, even if it takes time and effort.

A culture of saving can help you meet your goals. It’s sacrificing today to have a better tomorrow. Sergio Fernández, author of the book Vivir con Abundancia (Living Abundantly), states that it is necessary to set aside a monthly percentage of our total income to a savings fund (between 15% and 20%) depending on age.

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On the other hand, saving in banks is good, but there are also other savings and investment alternatives that can help you have a higher return.

2. Invest

Investing in stocks can be a good option, you can also do it in CDTS or currencies and for the most risky there are the Cryptomon currencies. Remember that investing in stocks is not something that is reserved only for big businessmen.

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3. Don’t get into debt

We have in our imagination, often thanks to the media and advertising, that to get material goods, for example, a car or a house, the most appropriate solution, if we do not have the money, is a credit, that is, get into debt.
However, some experts say that getting into debt is just mortgaging our future, so they recommend not to do it. If you have already acquired this debt, it is best to get out of it as soon as possible.

4. Rationalize your expenses

Don’t spend more than you earn. Increase your money or spend less. If you have credit cards, learn how to use them. If you can’t make good use of them, get rid of them.

5. Have a cushion of peace

The peace of mind mattress consists of having a savings that will provide you with at least 1 or 2 years of expenses.
This means having savings to pay for at least 1 year of your expenses in case you have no income during that period. The mattress will allow you to live comfortably and without financial worries, at least for this period of time.

6. Make an annual budget

Experts also recommend projecting on a yearly basis, not monthly, keeping track of income and expenses to know how much money is coming in and going out of your cash flow.

7. Look for different sources of income

Some experts, such as Raimón Samsó, author of the book El código del dinero, argue that in order to have more income, it is necessary to diversify the sources of income and increase them every year.
That is to say, to collect sources of income, to have one main source and several diverse sources. As the popular saying goes, don’t put all your eggs in one basket.

It is not enough just to get an income from a permanent job that requires your presence (actively earned income), it is necessary to look for other sources of money (passively earned income) that at first require your presence, but later do not. You can also make investments that do not require your presence.

8. Change your bad money habits

We know that it is not easy, but to achieve greater economic well-being you must start by changing those bad habits regarding money.
Habits that lead to making bad and irresponsible financial decisions, and that also do not allow us to achieve our financial goals.

9. Seek financial information and get advice from experts

In order to have a greater economic well-being it is necessary to have a solid financial education or to look for help from an expert who gives us good advice.