On many occasions we mentioned how important it is to properly handle our money, and protect the fruit of our work 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 the time limit we have set us.
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Get the value of its assets
Make a personal balance, calculating the amount of its assets and its liabilities, to obtain the total value of its assets. Perform this exercise every month, so that, if you follow these tips, see how each month increases.
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Pay your debts and start saving
Conduct a thorough analysis of your financial situation, income and expenses. See where your money goes, and how you can save. Do not spend salary increases or bonuses received; use them to pay a portion of their debts and when being wound up, savings to fulfill its objectives. This is a way to look after your money.
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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 account and generate interest above inflation. Use this money only for emergencies and unforeseen events, so you do not have to dip into the money you have saved for other purposes.
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Invest more so now
The more and sooner invest, the more benefits you will get, thanks to the magic of compound interest.
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Be systematic
Place your salary 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. The advantages that offer commercial programs Personal Finance to keep a daily record of all movements, and always have on hand the most relevant data.
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Educate yourself
Read articles, books and magazines Personal Finance, which will give new ideas about how to be better saver, how to buy smarter, how to care for your money and how to be better investor? Attend all seminars and talks can. Although you may have your own investment adviser, you should always know and understand the basics of investment.
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Hire an expert
If you have no financial adviser, 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 investment measure that guides you through the correct way to achieve them. It should help you care for your money.
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Diversify your investments
Diversifying means not putting all your eggs in one basket – this is essential to look after their money. Invest in different instruments, a little in debt instruments, a little hedging instrument and more in equities, but always taking care of their liquidity needs, expectations of performance and risk profile.
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Check your credit report
In any individual can access your report credit bureau for free. Know and be aware of your credit standing is the first step to improve it.
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Check your credit cards
Use them only as a means of payment to take advantage of free financing offered, and pay them fully before its deadline. Never use credit as a means, unless the case of a true emergency. Keep only what you need to meet your needs.
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Estimate your pension
Make a projection to know how much you have in your pension when you retire, assuming their wages remain constant. See how much has already accumulated and how much is contributing to two months. Use a real return of 5-6% and contemplate commissions on balance or performance that applies its pension. Perform this exercise every time your salary is changed.
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Calculate how much you need for retirement
If you see not reach you with what you have on your pension, complement your savings with voluntary contributions, with endowment life insurance or a plan of independent retirement.
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Know the benefits that give its social security system
Social security systems 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 be listed for each of the benefits of the law and try to take advantage of all its benefits.
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Check your insurance coverage
This is another way to look after their money. Make sure you have properly secured your home, health, life, auto and civil liability. If you own a home, obtain replacement value coverage; If you rent, make sure your personal property.
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Plan your succession
Make a will or hire a testamentary trust, to ensure that the fruits of their labor remains in the right hands, and prevent your loved ones to make long and costs paperwork, or have to face painful trials and discussions between them. This is taking care of your money for when I’m gone.
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Keep updated its 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, which are the beneficiaries of all your accounts or insurance policies, and make appropriate modifications if required.
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Keep all your financial records in a safe place
Keep all contracts in a box fire; a good choice can be a safe deposit box at a bank. Also, keep a hand whenever 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 know where to find this information in case of emergency.
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Prepare
No one likes to think that one day we can divorce, incapacitating or simply die. But it can happen, so we must always be prepared.
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Use your head, not your heart
Do your own research and do not base your financial decisions on feelings or advice 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 who is trying to make you feel uncomfortable, get your money immediately and invest elsewhere.
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Do not shirk your responsibility
Although your partner manage family finances, you should always know what’s going on with your money. Sit down once a month with your partner, to review the statements and reports of their financial situation. Check her investments.Although they have professionals working for you – accountants, analysts, financial consultants or account executives – you should always know what is happening with your money. Remember, no one will care more than you do of your financial security.
Do you have any other tips to care for your money it practical?
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