The financial expert explains how to do good financial planning and balance your year-end goals
THE end of the year it is already there and it is at this moment that many Brazilians begin to think about it more finance. After all, it’s time to evaluate how you’ve managed your money this year, tie up any loose ends, and think about how to improve your planning for next year.
And, to do this financial planning well at the end of the year, it is important to follow some essential steps that will help you set good goals and achieve them. First, this involves understanding your current situation, writing down your expenses, how much you earn, among other information.
“You cannot set a goal without first objectively understanding your financial reality. You need to calculate your fixed and variable expenses, as well as identify where there are unnecessary expenses,” emphasizes Resende Neto, financial specialist and financial mentor.
It is also essential that these objectives are specific and measurable, divided into short, medium and long term. “In the short term, the focus should be on creating a financial reserve. This reserve must be equivalent to at least six months of fixed expenses and must be applied to highly liquid investments, such as CDBs, Treasury Direct bonds or DI funds. he amount will be your safety cushion, which will be used only in case of emergency,” he says.
In the medium and long term, more ambitious ideas emerge, such as changing cars, taking a trip or even achieving financial independence.
Do you want to do good year-end financial planning and achieve all your goals for 2024, as well as create new ones for next year? Then take a look at 4 more expert tips:
Stay focused on your goals
Staying focused on your goals can be a challenge, especially during difficult times, such as economic crises or unexpected expenses. Resende Neto suggests that an effective way to address these obstacles is to break down goals into micro-goals.
“Imagine that each goal is a big step on a ladder, and that each micro-goal is a small step towards the top. By taking these small steps, you can maintain motivation and focus, as well as see progress,” he advises.
Don’t give up on recovering your financial health at the end of the year
Precisely because the end of the year is approaching, many people end up giving up on their goals, thinking that there is no more time. However, according to the expert, it is possible to regain financial control even in a short period of time.
“The first action should be to review expenses and eliminate what is superfluous. Then, renegotiate debts and use extra resources, such as the 13th salary, to strengthen your financial reserve or pay off outstanding debts,” he indicates.
And, even when time is short, Resende recommends consulting a local professional so they can help you make the best decisions possible.
Use tools to track progress
Tracking your financial progress is essential to ensuring you reach your goals. In this sense, Resende Neto suggests the use of tools such as spreadsheets and financial control applications, which help monitor income and expenses.
“More important than the tool, however, is the discipline to periodically review your goals and make necessary adjustments,” he comments.
Change your goals for next year
If you really can’t reach some of your financial goals for the year, Resende Neto recommends not complaining too much, but rather adjusting your expectations and rearranging your goals for the next cycle.
“The end of the year is a great time to reevaluate what worked and what didn’t. Reorganize your goals into micro goals and start the next year with a more detailed and realistic plan,” she explains.
Source: Terra
Ben Stock is a lifestyle journalist and author at Gossipify. He writes about topics such as health, wellness, travel, food and home decor. He provides practical advice and inspiration to improve well-being, keeps readers up to date with latest lifestyle news and trends, known for his engaging writing style, in-depth analysis and unique perspectives.
