Nearly 70% of the population cannot save their finances until the end of the month
Financial organization is essential to stop seeing the money missing at the end of the month and start making a profit. The reality of most Brazilians, however, has been very different. According to Serasa, 70 million people are in default in Brazil.
With so many difficulties, saving money and making it “on your own” seems like an almost impossible feat. For financial advisor André Minucci, there is a way to change this paradigm and live a more financially independent life.
“Before thinking about any investment, it is important to check the expenses. Some things can be rethought and replaced. For example, do I have to take on this debt at the moment? If changing the car for a cheaper one, wouldn’t it give me more financial relief? These are some questions to consider,” says Minucci.
According to the National Confederation of Industry, in 2022 almost 70% of the population will not be able to save their finances until the end of the month. To change this reality, the expert cites 3 suggestions; he checks below.
1. First of all, invest in self-knowledge
The first step is to know what your expenses are. To know what is the best investment or how to save money, you need to have a self-knowledge of financial life.
“To enter the world of investing, start by establishing goals and objectives of how much you want to save at the end of the month, you can help in this phase by helping yourself with planning and greater engagement”, advises Minucci.
According to your financial advisor, sometimes it will be necessary to have discipline and cut out what is not needed. Another recommendation is not to make many installment purchases, which increases financial commitments. “Escape credit card debt payments, this can hurt your finances in the future.”
2. Open an investment account
Paid your bills for the month – it’s time to separate how much you want to invest. The important thing is to open an investment account — whether it’s with a brokerage firm or even with traditional banks — to separate the money that will be used from what is needed for everyday expenses.
This division is good advice so as not to be tempted to spend it on other things. “When you open an account, your investor profile will be defined with a quick questionnaire, whether you want to take more or less risk. All this, to make you more comfortable with the investment,” he explains.
3. Choose the right investments
Anyone who has the big dream of living on an annuity or wants to have extra money at the end of the month needs to know where to invest. Real estate funds, dividend-paying stocks, interest-bearing fixed-income securities, and funds that track publicly traded indices are good options.
“Fixed-income investments are safer when made in larger institutions, but when the interest rate is very low it’s not an attractive investment,” says Minucci.
If the person intends to live on rent, real estate trusts are cheaper options than one might think. “Although it is an attractive proposition, the risks of a possible loss can be high, so one must be careful,” she warns.
4. Beware of “miracles”
Higher returns than those generally advertised by the market are at a high risk of loss or fraud. “You have to stay tuned so as not to fall for scams. Look for reliable agencies that can guide you in the right direction. If the promise of making money is too easy, be wary”, concludes the financial advisor.
Source: Terra

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