Financial control – Learn how to have it

Having financial control is a big challenge, especially in the United States, where many people don’t know how to handle money.

In this sense, they end up losing control of their finances and are always in a tight spot.

They don’t know if they can pay even the most basic bills because of debt.

The accumulation of debt is a worrying factor for the country and the individual, as it affects both the person and the economy. 

This is the reality for a large part of the population.

And one of the many reasons for this is a lack of financial education.

You need to plan in order to have good financial control and a stable life.

What is financial control?

The lack of this foundation, which should be taught from an early age, at home or in schools, is the main reason for this problem.

This leads to a series of difficulties in people’s lives.

And it can often even cause health problems due to excessive worry.

Not only that, but if you’re in debt, you’ll have no credit and a bad name with the consumer protection agency.

And they end up becoming a defaulter, which is very bad for the country, because the economy doesn’t grow.

In other words, people in this situation stop consuming and this complicates the country’s finances.

Financial control requires financial education.

This means keeping track of expenses and income, possible investments, bank accounts.

Everything related to your money needs to be controlled so that you don’t run out of time.

If you know how to manage your money responsibly, you will always be aware of your spending.

Therefore, the solution lies in planning, not spending without thinking irrationally.

If you manage to have this discipline, you’ll soon realize that you have the opportunity to save.

And with complete awareness of your finances, you have the chance to have money left over in your wallet.

That way, you can invest it or save it to buy something you want.

Financial control not only improves your finances, but also your quality of life.

Those worries that keep you up at night go away.

This way, we can devote ourselves more to our dreams, such as delayed studies or new training.

In order to keep track of your personal finances, always keep a record of all your outgoing and incoming money.

This will allow you to identify all your expenses and have more details about your budget.

Benefits of financial control

Speaking of which, the credit card, which should be an ally, has become a villain in the lives of many North Americans.

They use the product and don’t always have the means to pay it off, ending up with debts that are almost impossible to repay.

As a result, many resort to loans and get into even more trouble.

Other debts that are also taking their toll are car loans and student loans.

This situation is very typical for people on low incomes or who have somehow lost control of their finances.

In this sense, we can highlight many problems that affect the lives of people in this situation. 

Such as defaults, which take away the person’s purchasing power, marital and mental problems.

As well as insomnia, depression and anxiety.

The benefits of having personal financial control are numerous:

• Peace and security;
• Possibility of investing and having more money;
• Better mental health;
• Debt reduction;
• Planning and clear goals.

So, it’s worth remembering that it’s not always easy to do this, because human beings are immediate and don’t know how to wait.

In other words, when you want to buy something, you need to do it soon, but you need to change your mindset and start looking at money differently.

Always ask yourself: Do I really need this, or will this amount of money not be needed?

Always prioritize what is most important to you, not at that moment, but for life.

Other benefits

On the other hand, with personal financial control, you start to see your finances in a different light.

They start to think more when making any investment, and the superfluous is no longer part of their budget.

Lack of financial education can hinder the realization of a dream or even plans for the future.

In other words, it could be a trip, buying a house or car, or anything else.

Financial control is a method that encourages you to pursue these goals.

Tips for keeping track of your personal finances

If you’ve realized that you need to make a change in your financial life, start by identifying your expenses.

In other words, see what kind of expenses you have. There are fixed expenses, which are incurred every month, and variable expenses.

Fixed expenses are those that, regardless of the amount, need to be paid every month.

These include rent, water and electricity bills, condominium fees and groceries.

As well as car payments, subscription services (such as Netflix), among others.

Variable expenses, on the other hand, are not usual, such as buying shoes, clothes and spending money on leisure activities.

These expenses are not usual in the monthly budget, they vary according to consumption and their value changes.

Therefore, for personal financial control, the variable expenses are fuel, clothing, gifts, outings.

Also, household utilities, travel, post-paid cell phone plans, among others.

Once you’ve identified where your money is going, make a spreadsheet and write down everything you’ve spent during the month.

It’s worth noting that, with advanced technology, you can even do this on your cell phone.

By doing this, you get to know your cost of living, you know how much you can spend and how much you can save.

Avoid buying on impulse and plan ahead, so you don’t regret it later.

Therefore, set a monthly purchase limit and try not to exceed it.

Use your credit card to your advantage. Just buy it if you get a discount or if you’re going to put the money to good use.

Don’t use the limit if you’re not sure how you’re going to pay it off, and always watch out for interest charges.

More tips

Otherwise, to have personal financial control, you need discipline and self-control. Change your habits:

• Instead of cabs and transport apps, walk;
• Drink coffee at home or take a packed lunch to work;
• Exercise in public outdoor gyms;
• Carry your own water bottle, so you don’t buy it in the street.

Another tip is to always try to save money to fulfill some desire, and prioritize what is durable.

On the other hand, make an emergency reserve for any problems that may arise.

And don’t forget to try to invest a small part of your income, stop being a debtor and become an investor.

By the way, always beware of the pitfalls of promotions where the discount is very good, or installments you can’t afford.

The interest charged is not worth the risk.

Otherwise, there is no miracle formula for getting out of the red without financial education and personal financial control.

Also, try to apply the 50, 30 and 20 rule, which is 50% for fixed expenses, 30% for variables and 20% for financial reserves.

Therefore, don’t forget to always consume consciously, avoiding waste and non-durable goods.

Daniel 2 de April de 2024