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Golden rules of personal finance

One of the positive aspects of the recent financial crisis, is the rediscovery that many people have made saving and multiple benefits. No matter if it is experiencing a situation of economic constraints, or has a thriving period of expansion, economic solvency and the saving should always be present as the starting point of any plan or budget.

But not always work well. For various reasons, it is common to lose the north and make mistakes in how money is handled, so when starting a new year is helpful to make a recovery plan to put personal finances in order, attending to some rules basic, with discipline and common sense lead to the success of this purpose.
1
Determine what your true financial position

This can make a simple relationship that reflects the following:

* Income (wages, investment income, business)
* Expenses (food, housing, services, includes all the expenses)
* Results: Set a period, for example, the last six months, total income and subtract expenses

Then prepare a personal balance pointing assets (investments, bank accounts, property), liabilities (mortgages, loans, credit cards) and wealth (assets minus liabilities). Review the information obtained with objectivity to know where to make cuts and adjustments. Ideally, the resulting figures are positive, otherwise it is losing money and risking stability.
2
Create a budget

This should be as realistic as possible so that you can stick to it and fulfill it. Not have to be complicated, can be guided by the advice and worksheets that provide some specialized sites on the web. With the income and expenditure in view, it is easy to set limits on money management.
3
Set your goals

Now, you have everything you need to chart the way forward, knowing that should increase income and investments, pay off debts and reduce costs. The important thing here is to set measurable objectives, measurable and time bound. For example, set goals every quarter, revenues increased by 20%, cut costs by 30%, fully repay an account.
4
Draw a plan of action

Here note down the ideas that occur to you to achieve the objectives. For example, start looking for a new job, or any other source of income such as consulting, teaching, a small investment that will generate immediate profits.

Also note down the steps to save, with actions that are part of the routine, and can be done more economically: start bringing food to the office instead of eating out, limit the outputs of fun changed for distractions Home, jog or walk in the park instead of going to the gym or subscribe to a plan of saving gasoline.
5
Commit responsibility

When you set a goal, the person is posing a challenge to be overcome at all costs. It helps if you share with someone you trust, who can review the progress or failure periodically. Whether the case of the couple, friend, partner or co-worker, the idea is that this person can make contributions and called attention to help maintain the course set.
6
Start paying debts

To heal the economy is a priority to begin paying the outstanding debts, even if with small repayments, while achieving increased revenues. It seems obvious, but it is amazing the number of people who have high debt and intend to hold savings, whose rates are negligible compared to the interest paid, for example, credit cards.

In short, you can not invest or save money without paying off debts. Review your finances, set priorities, make a plan and follow it with discipline, and soon begin to see the results.

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