When I say that I am a financial educator, there are always several doubts regarding the way I take care of my finances and manage my investments. Many people are surprised by some of the actions I take on some of these issues. I separated situations that are not so obvious, but are able to make you take care of your finances much better.
You’ve probably worked in other places and been paid less than what you earn today with your current job, right? His position increased and his salary followed suit. Why were you able to live with that lower salary before, and now, when you earn more, you can’t?
I know it sounds cliché when we talk about financial planning, but it’s what makes the difference between closing the month with money invested or ending up in the red. If you spend all you earn and often exceed that amount, unfortunately, there is no miracle that will turn you into a rich and prosperous person.
One of the secrets of those who have money saved is this: live as if they were paid less and thus be able to invest every month. Otherwise, you will constantly need to increase your income just to pay the bills you have already done and not to grow in life.
Whenever I can, I pay in 12 installments
When I go to make a purchase, especially when it has a higher value, I think about how much I can decapitalize at that moment, that is, take money from my account, from my day to day to pay for some good or service. For this to be worth it, I have to have a discount on the total purchase price. If the discount is 10% and that amount is not missing from my accounts, I will pay in cash.
Otherwise, if the cash amount does not have any discount or advantage and the installment does not charge interest, I will pay in installments as often as possible. Several establishments, instead of losing 100% of a purchase, prefer to offer the customer the option of paying in installments on the credit card without interest, taking for themselves the discount of the amount of interest charged by the operator.
There is no problem in splitting your purchases if you are a financially organized person and do not make direct use of this type of payment. The problem occurs when for any expense you swipe your card and pay everything in installments. Interest free is not the same thing as no control.
I never see my investments
If you ask me now how much money I have invested and how much it is earning this month, my answer is: I don’t know! I don’t usually follow my investments, I don’t look for the daily fluctuations of the stock market and much less how much such action paid me in dividends this month.
When I invest, I choose all my investments by objectives and fundamentals. Each share, real estate fund and Treasury Direct bond that I choose, I do a good study beforehand to find out how the company is doing, what its differentials are, what the goals are for the future, and after making sure that I am choosing the best investment for me at that moment, I no longer see any point in keeping up with small changes that may occur in the market on a daily basis.
Keeping track of investments often can end up generating enormous anxiety, as you will start to question whether you really made the best choice with your investments and then you will choose the worst: sell your assets even if you have a loss. If you chose your investments well, believe in them and be happy away from the stock market numbers.