The 7 Monetary Functions You Ought to Have for 2021
This article was translated from our Spanish edition using AI technologies. Errors can occur due to this process.
The opinions expressed by the entrepreneur’s contributors are their own.
At present, personal finance has become a very popular topic as our environment has become very challenging from an economic point of view. Thanks to this, more and more people are looking for solutions for their economy at this time and for the future. Today I bring you seven financial purposes to accomplish this in 2021.
1. ONE MORE: We will create an additional source of income to avoid risks in your finances. You don’t need to have another job to do this, just highlight your talents and skills that will help you generate income for example: selling a product or service, giving advice based on your experience and knowledge in a subject, etc. Once you do them , you will see a positive change in your personal economy. If you don’t know where to start, I’ll give you my 5 e-book strategies for making extra cash.
2. HORMIGA EXPENSES: These are the imperceptible expenses that you make during the month and that gradually weigh on your economy. However, if you are aware of this type of cash outflow, you may find that morning coffee is a part of everyday life in restaurants and even outings with friends, it can have a serious impact on your wallet. Hence, one of your goals for this year 2021 should be to reduce or eliminate this type of cash outflow.
An easy way to do this is to enter and spend your money on an application like Monthly Budget, which is free for IOS and Android. This way, you will become more aware of how much you are spending and what it is on, ultimately eliminating the emotional expenses of your life.
3. POSITIVE CASH FLOW: It is nothing more than trying to reach the end of the month with money. How can that be achieved? If you just put the previous two steps into practice, eliminating unnecessary expenses, and generating more cash with an additional source of income, you can maintain your lifestyle without resorting to debt to accomplish it.
4. ELIMINATE DEBT: The more debt you have, the more your spending increases, which takes you further and further from your financial freedom. However, it is possible to achieve this for long-term debts (car, house), it is necessary to continue payments in a timely manner and settle the short-term payments. It is necessary to stop acquiring new debt. This way you will become less prone to economic situations.
5. MAKE MORE MONEY: When we talk about investing, we avoid making and spending money as that way you will only get negative cash flow or become a creditor of debt. The best thing is to create an investment plan to multiply your money and three to earn plans to invest you can start with 100 pesos and CETES is the best option as it is the least risky vehicle as it is of the Government is supported. The second is your afore, you will see an increase in the amount for your payout as well as when the time comes you can stick to your current lifestyle. If your accumulated capital exceeds 5,000 pesos, you can invest in crowdfunding for a little more attractive returns and finally, most importantly, invest in your retirement plan. According to data from various surveys, 85% of the population cannot enjoy a decent retirement because they have never invested in this plan, do not leave your future to chance, invest.
6. PROTECT WHAT IS MOST IMPORTANT: When you find yourself in a time of difficult financial situations, the riskiest thing is to lose what is most important to you, in other words, your wealth, starting with your life, yours Home, your health, your car; How you do that? Find a way to find the right alternative through insurance, find a suitable advisor, find a reliable company that can provide you with the support you need, and ask yourself how much the years of your working life are worth. I think too much, trying to protect what is most important in your life.
7. REWARD YOURSELF: When you find that your finances are in good shape, you can reward yourself. If you are already reducing your debt, increasing your income, and already generating returns on your investments, incentivizing yourself to properly manage your finances is a positive thing. When you reward achievement of a goal, it is an incentive to move on. The rewards are good and they work as long as they are moderate.