Prioritize debts and investment

In the last column we talked about the essential expenses, such as housing, transport, health, education and market. I suggested that you limit your budget with these expenses up to 50%. That is, up to $ 1,500 you earn $ 3,000 / month. Today we will talk about Financial Priorities, the second item in the “50-15-35” rule, which will help you organize your finances.

Financial Priorities are essentially debts and investment

Financial Priorities are essentially debts and investments. If you are in debt, you must reserve 15% of the salary (R $ 450 of R $ 3,000) to take them out. Depending on your degree of indebtedness, it is worth making the extra effort to reserve even more money and resolve the situation as soon as possible. In that case, you will have to spend spending on essential expenses and lifestyle (leisure, travel, bars and restaurants, for example).

Special check, revolving credit card 

Special check, revolving credit card 

If you have more than one debt, it is best to first take the most expensive ones. Special check, revolving credit card (triggered when you pay the minimum of the invoice) and loans in financial and moneylenders are examples of debts that charge very high interest and, therefore, should be the first ones with which you must worry. One option is to replace these debts with cheaper ones. Try to renegotiate with the lender or take out the lower rate loan to pay off the more expensive debt.

Achieve your medium and long term goals.

Achieve your medium and long term goals.

Already, if you do not have debt, your financial priority should be 15% of income to achieve your medium and long term goals. Saving 15% of the income per month, your first financial goal should be to build an emergency reserve of 3 to 6 salaries to prevent financial contingencies. This takes a year and eight months on average. If you can save on lifestyle and essential expenses, you can increase your monthly savings and reach that goal before the deadline. Nor will you need to overdraw each time you are faced with unexpected expenses.

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