Personal Finance Course:Defining Objectives And Plans

Financial diagnosis and cost cutting have one goal behind. At worst, costly or unnecessary cost cutting effort will help you live with the awareness that you are the player that controls your financial life and not a marketing company willing to sell you some product that, viewed well things, do not have to.

Having put your finances in order by building your family budget or by having better control over your money, it is time to set goals and plan to achieve them. So let’s start with some questions:

  • What are your life goals for the next 5 years? And for the next 10 years?
  • What are your financial goals?
  • When do you want to end your debt?
  • How much do you want to save? Do you have a medium-term project?
  • How much do you want to save for retirement? Is it necessary?

These issues serve as a motto for defining debt reduction and savings goals. Ultimately, reducing consumption and indebtedness to the present day will serve to increase your quality of life in the future (whether in the short, medium or long term).

Think big. Do not be shy. Dream. Utopias are, by definition, something impossible to attain. However, the way to achieve this utopia will lead you to grow, improve and achieve higher levels of satisfaction and financial independence . So, set goals that are:

  • Ambitious ;
  • Attainable – Not to generate demotivation;
  • Concrete – In terms of values ​​and deadlines.


Start Building Your Emergency Fund

Start Building Your Emergency Fund

Having more ambitious or more modest goals, it is vital that in your life you have an emergency fund to deal with unforeseen and less pleasant situations. This fund will depend on a set of factors and its value is something subjective. In general terms, count on 3-4 months of costs accumulated in a savings account. It may seem like a lot but will allow you to have the security and peace of mind needed to face your life.


How Much to Save?

personal savings

Having set your goals, you should do some calculations and determine the amount of monthly savings to achieve them. To help you in this context, we suggest that you download our free-of-charge savings simulator for free. This simulator has been designed to make it possible to analyze your monthly savings effort, taking into account your objectives, your risk profile and your investment horizon. When using the simulator you will realize the amount to be reckoned taking into account the term of your investments and the expected interest rate for your portfolio.

If you would like more details regarding the profitability of your savings, we suggest that you register for free in our mini course on investments (available soon).

Of course the possibility of releasing income for savings will depend on your cost-cutting effort that we hope to have contributed to in the diagnostic classes. At this stage we tend to have some reluctance or disbelief from some people who say it is impossible to save. You may not agree or understand the reasons but know that we do not believe it. We do not believe that anyone who uses a serious tool to build and analyze their budget does not find (many sources) savings (from bank fees, meals outside the home, waste of telecommunications, among others).


Learn More About Savings and Investments

personal savings

In recent years we have had the privilege of training many people concerned about their retirement. As we know, many countries around the world have their social model called into question by the recent crisis and the demographic challenges they face. Thus, the need to safeguard the future has generated more and more interest in these issues.

Believe it or not, the investment world is not that complex. In practice, it is necessary to know some products (so that you are comfortable with your risks) and your potential as well as to define an investment strategy that is aligned with your objectives and risk profile.


Talk About Money!

Talk About Money!

Money must cease to be a taboo subject. People do not usually like to talk about money. In the family, this theme is a topic that usually generates discussion. But we always argue that a good discussion is better than a divorce. We need to get into the habit of talking about money and, more importantly, the goals and priorities of each person in the family. The family has to set goals and plan to achieve them. Believe that having couples (and children) all lined up on the same goal will make it easier and faster to get to your destination. We will soon have a short course on financial education available.

Setting goals should be evolutionary and something family-friendly (if that’s your case). You may need some support in defining your strategy. Leave us your concerns, comments and questions and we promise to help. Tomorrow will receive your last lesson that will address the theme How to stay in line and achieve financial independence.

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