On many occasions we have mentioned how important it is to know properly handle our money, and protect the fruits of our labor against unforeseen events. Therefore, below is a list of 20 things we can do now to take care of our personal finances and so we can meet all our goals within us that we have set.
1. Obtain the value of its assets.
Make a personal assessment, calculating the amount of their assets and liabilities, for the total value of its assets. Perform this exercise every month, so that, if you follow these tips, see how monthly increases.
2. Pay off your debts and start saving.
Conduct a thorough analysis of your financial situation, income and expenses. See where your money is going, and how you can save. Spend no pay increases or bonuses received; use them to pay part of its debts, which may have been settled, destínelos savings to fulfill their aims. This is a way to look after your money.
3. Create your emergency fund.
It is very important to always have money available, equivalent to between three and six months of its current spending, invested in a safe, accessible, liquid interest-bearing account and above inflation. Just use this money Emergency and unforeseen events, so you do not have to dip into the money you have saved up for other purposes.
4. Invest more now.
As more and sooner invest, the more benefits you will get, thanks to the magic of compound interest.
5. Be systematic.
Deposit your paycheck directly into your checking account, and use the electronic advantages that offer some banks to automatically transfer a certain amount each month to your investment account. Experience the advantages that offer commercial personal finance programs to keep track of all your daily movements, and always have on hand the most relevant data.
6. Educate yourself.
Read articles, books and personal finance magazines that will give new ideas about how to be better saver, how to shop smarter, how to care for your money and how to become a better investor. Attend all seminars and lectures you can. While you may have your own investment adviser, you should always know and understand the basics of investment.
7. Hire an expert.
If you have no financial advisor, and you think you need one that will orient, locate and hire who know gain their trust. The ideal consultant must hear all their hopes, concerns and goals, and design a plan tailored investment guide you through the correct way to achieve them. It should help you care for your money.
8. Diversify your investments.
Diversification means not putting all your eggs in one basket – this is critical to look after their money. Invest in different instruments, a bit in debt, a little hedging instruments and more in equities, but always ensuring their liquidity needs, expectations of performance and risk profile.
9. Check your credit report.
In Mexico any person can have access to their credit bureau report for free. Know and be aware of your credit situation is the first step to improvement.
10. Control your credit cards.
Use them only as a means of payment to take advantage of free financing offered, and pay them off completely before your deadline. Never use them as a means of credit, unless it be a true emergency. Please only need to meet your needs.
11. Estimate your pension.
Make a projection to know how much will have at its Afore when he retires, assuming your salary will remain constant. See how much you have accumulated and how much is contributing to two months. Use a real return of 5-6% and enjoy the balance or performance commissions on applying its Afore. Perform this exercise whenever your salary is changed.
12. Calculate how much you will need for retirement.
If you see that you will not achieve what you have in your Afore complement your savings with voluntary contributions, with endowment life insurance or an independent retirement plan.
13. Learn the benefits that gives Social Security system.
Social security systems in Mexico offer many benefits. The most important are, without doubt, the sickness and maternity insurance, disability pay and pension rights in the event of total and permanent disability. Know how many weeks should quote for each of the benefits of the law and try to take advantage of all its benefits.
14. Check your insurance coverage.
This is another way to look after your money. Make sure you have properly secured your home, health, life, auto and civil liability. If you own a home, get replacement cost coverage; If you rent, ensure their personal property.
15. Plan your succession.
Make a will or hire a testamentary trust, to ensure that the fruits of their labor will be in the right hands, and prevent your loved ones to make long and paperwork costs, or have to face painful trials and discussions between them. This money is to look for when I’m gone.
16. Keep updated the beneficiaries.
Many times our beneficiary designation corresponds to immediate needs, which are subject to change over time. It is good practice to verify, once a year, who are the beneficiaries of all your accounts or insurance policies, and make appropriate modifications if required.
17. Keep all your financial records in a safe place.
Keep all contracts in a box fire; a good option can be a safe deposit box at a bank. In addition, always keep handy a copy of them, for any clarification to be made. If you have a computer, you can keep all your data in a file, saving a backup of the information in a safe place. Make sure your spouse or a trusted person knows where to find this information in case of emergency.
Nobody likes to think that one day we can divorce, incapacitating or just die. But we can spend, so we must always be prepared.
19. Use your head, not your heart.
Do your own research and do not base your financial decisions on feelings or tips from friends. Also, never invest in anything you do not understand and always ask. If you are not satisfied with the answers you receive, or if the person you’re trying makes you feel uncomfortable, remove immediately and invest their money elsewhere.
20. Do not shirk your responsibility.
Although your partner manage family finances, you should always find out what’s going on with your money. Sit down once a month with your partner, to review the statements and reports of your financial situation.
Check her investments. Despite having professionals working for you – accountants, analysts, financial advisors or account executives – you should always know what’s happening with your money. Remember, no one will care more than you about your financial security.