Six hacks for year-round financial health

Are you a working or small business owner and feel your financial health is declining throughout the year? This article may help. The end of the year is here and with it the Christmas and New Year expenses, if you follow the tips below you should not be in a distressing situation.

Recognizing the amount of income, budgeting and not getting into over-indebtedness is the secret to sound personal finances. Find out more with these tips.

1. Take into account the amount of your income

As a financial professional, I am aware that the initial problem of any mismanagement of personal finances is the lack of awareness of the purchasing power provided by your current income, I know of cases of people with relatively low incomes that, due to their ignorance of their own income have come to have rates of indebtedness that are not healthy.

So keep in mind that if you have the average - or below average - income of workers in your industry, you should not be spending money or accessing credit at Warren Buffett's level far from it. Be aware of your situation!

2. Design a logbook with your income and expenses

You would be surprised how many times a simple act like designing an excel sheet with expenses and income has helped people organize their financial situation, in my experience, the only thing that can improve the prospects for change is order.

So I recommend that you design an excel sheet, very simple, it does not require you to be a great data engineer or a financial expert, where you have at least three columns: expenses, income and date of operation.

3. Save money

I know we humans don't like to save, I also love to squander my surplus: it's natural!

However, I strongly recommend that you reflect before making an expense or acquiring a credit, keep in mind that much of the financial health is due to the propensity to save of the person.

Save, but please, do not use a piggy bank to store your money! keep in mind that money depreciates (there is a phenomenon called inflation) so I recommend you to use the financial system to deposit your savings, create a bank account, or if you already have one, use it!

4. Set aside money in an emergency fund

Sometimes life is not very generous, accidents can happen, and a person who wants to have good financial health has to be aware of that. Create an emergency fund to which you periodically set aside an amount in order to guarantee your peace of mind.

4. If necessary, seek professional help

Finances are definitely a complicated subject, and I understand that you are probably too busy running your business, working and enjoying your life to be attentive to the health of your finances. So I recommend that you seek help from a professional whenever necessary.

Count on me to solve your doubts, contact me by any of the channels that are published on this page.