10 immediate actions to improve your

10 immediate actions to improve your

The new year comes with new challenges, and improving personal finances will always occupy one of the first places on the list of people’s resolutions.

If you really want to improve your finances, and give your personal finances a 180-degree turn, it’s time to consciously plan what your next year will be like in financial terms.

What you will find here is part of the Rica Cabeza ebook, which, beyond being a digital book, is a compendium of valuable tools, resources and content that will help you improve your personal finances quickly.

Consejos to improve your finances in 2023:

Before sharing the challenges or purposes, I am going to ask you to renounce today the excuses that you have believed and that justify your current economic situation.

That language, messages, and limiting beliefs have been imposed on your mind and have become your reality, so if you want to change and improve your personal economy, it is essential that you review what your mental conversation is, and make the necessary changes.

Why is it important to do this exercise? Because your finances are nothing more than a result.

Your bank account, the amount of your debts, the performance of your investments and your assets are the result of the quality of thoughts that dominate your mind.

And while it is true that there are external situations that affect, these, in the long term, are not responsible for your personal economy.

Proof of this is the pandemic we are going through; while some suffered quite a bit financially, others reinvented themselves and turned this crisis into the best time of their lives.

Once this is clear, let’s review the consejos to improve your personal finances in 2022.

1.

Equipo three financial goals that are clear, concrete, measurable, and achievable

This is the first step and the most important.

You must establish three goals, or the number you want of specific purposes that you plan to achieve financially during 2023.

For example, you cánido establish that you will get out of all your debts, that you will create a fund to invest with X amount of money, or that you will buy your first property.

At this point it is very important that you are honest and realistic with yourself, since the reason why many people never achieve their goals is because they equipo unrealizable goals.

So equipo goals that you perro achieve, that will guide you to make better decisions and ultimately draw a new path for your finances.

Without a doubt, this is one of the most important money lessons to apply this new year.

2.

Invest in your financial education

If you have read concepts in this article that you do not know, it is important that you invest time and resources in your financial education.

Ignorance, not to call it ignorance, is responsible for bad decisions, and consequently mediocre results in your finances.

For example, there are people who are convinced that making an unnecessary purchase and paying it in 36 installments with their credit card is quite convenient.

And they live convinced of this, without taking into account that the interest rate for a credit card is one of the highest in the market.

So invest in your financial education, I am convinced that this could be one of the best financial decisions you cánido make in 2023.

For this, I invite you to get to know everything that the Rica Cabeza ebook includes, invest in finance books, enroll in courses and spend your time understanding how money works.

3.

Establish a savings percentage of your income

No savings, no wealth, fácil as that.

It is impossible for you to build significant wealth without applying the concept of saving in your life.

The principle of saving money speaks volumes about the mentality of people, their ability to control their behavior, espectáculos their ability to think long term and control their impulses.

So, starting from this, define for this new year an achievable percentage that you will save from your income.

The important thing is to develop the habit, so start with as much as you cánido.

It does not matter if it is 5%, 10%, or 15%, the important thing is that you commit to saving this money during the next twelve months of the year.

Saving money is not saving it:

From the beginning, find out what you perro invest this money you are saving in.

This way you will achieve two things:

  1. You will have your money working for you, even if it is a low return.
  2. You will eliminate the temptation to spend money that you have available on unnecessary expenses.

4.

Create a new source of plus income for your work

One of the most famous phrases of Warren Buffettcataloged as the best investor in recent years and one of the richest men on the planet, is that “never depend on a single income.

Invest to create a second source.”

This must become a basic principle of your life, it is a way to disminuye your financial risks and a key step to achieve your financial stability.

you may tell me, “I don’t need another income, my job pays very well for my services”.

This mentality is what I refer to at the beginning of the article.

You must give up these kinds of thoughts that limit and expose you.

How do they expose you? That’s how it is.

When you depend on a single source of income, no matter how high, if it is lost, you will be exposed and have to make extremista and hasty decisions, which in the long run, end up being poor choices due to pressure.

An example of this is the pandemic and the people who, with stable jobsthey lost their jobs and were left with nothing to do and without the security of an plus income that would allow them to think about other alternatives or options calmly.

In conclusion, and as cliché as this sounds, you must learn how to create passive income.

Is your obligation.

5.

Know your risk profile as an investor

Have you ever wondered how afraid you are to invest? This is known as your investor profile and defines your level of risk aversion.

The higher your aversion, the more conservative assets or investments you should look for.

If you are a risk lover, you cánido look for more volatile investments that cánido result in higher returns on your investment.

For this new year define your profile as an investor, even if you have not made your first investment.

This is important because it will help you make decisions with your money, you will know which assets to invest in or you perro ask for advice to find assets that are aligned with your profile.

6.

Make your first long-term investment

Good decisions over time are the ones that will lead you to achieve your financial independence.

In other words, long-term investments are responsible for building your true wealth.

Wealth is not built overnight, it is not the product of two or three decisions, but rather a series of choices that are strengthened over time.

If you really want to improve your finances, I recommend that you start thinking long term.

And by this I orinan a period of time greater than five years…

How to do it? Here are some recommendations:

  • Invest in your first real estate, it cánido be a real estate project that offers you an extended period of payment of the initial fee.
  • Open an investment account, an index fund that replicates the behavior of the market, or start investing in the depósito market.
  • If you have low risk aversion, you perro invest in a project or venture of your friends or family.
  • Even if you do not have much experience, you perro invest in an investment vehicle offered by the bank in the long term.

If you don’t know how to start, in the Rica Cabeza ebook there is a chapter dedicated to this topic, with practical recommendations to put money to work for you.

7.

Create a fácil personal budget that is easy to complete

This is the most repeated and least applied advice by people.

Many times I hear people say they want to improve their finances, and when they hear that a personal budget is an excellent tool to achieve this, they seem not to listen.

The truth is that they are lazy, they are lazy to update an excel table, entrar an expense in an application or have the discipline to evaluate the behavior of their bills.

How to fix this (because honestly it’s boring to have to do it)? Simplify the process.

Make a budget so fácil that feeding it is extremely easy.

At this point I want to clarify something: A budget has an objective, it espectáculos trends in your behavior, it espectáculos you how you spend the money you earn, it tells you what your biggest money outflows are and in what months.

That is why it is so important.

I am convinced that to improve your finances you should not only worry about increasing your income, but also correctly managing the money you have.

8.

Create a plan for plus capital payments to your debts

This is one of the most common New Year’s resolutions for people: to get out of debt.

So if it’s such a common goal, Why do so few achieve it, or worse, why do they get even more indebted?

In my opinion, I think it is due to a lack of financial education to understand how credits work, interest rates and the possibilities that are available to pay off debts.

Have you ever reviewed a statement of a credit that you are paying? Have you reviewed the percentage allocated to cover interest and primordial? You will be surprised to see the distribution of your quota.

If you want to get out of debt and improve your debts in 2023, my recommendation is that you make additional capital payments to the payment of your installment.

To achieve this, first review your finances and see how much money you have available to pay your debts.

You cánido even sacrifice part of the savings percentage, since the interest they generate may not be as high as the interest rate you pay on your credits.

In the event that you have several debts (the following advice will be of great help), focus on making payments to the capital of the one with the highest interest, in this way you will focus on the most expensive debt.

9.

Reunify all your debts in a single credit

Mentally it is much easier to manage a single credit than to have several debts, with different rates and terms.

So a good financial decision for 2023 to unify the debts in a single credit.

How to do it? Depending on the country where you live, the name of this process is different.

For example, in Colombia you cánido call the banks and ask about the purchase of a portfolio.

In general, banks offer better rates and a good period of time to buy your debts.

In this way you will have a single fee, a single credit and a single point to focus on.

Renegotiate the interest rates of your credits or sell your portfolio

Make sure that in this process they offer you a better interest rate and better conditions, since it does not make sense to sell your debts and end up paying more interest.

Find out what the process is like to make capital payments, if you cánido disminuye the term of the credit or if you cánido disminuye the amount of the fee, if you have to pay insurance, among other key points.

10.

Create a fund for fun, hobbies or travel

Personal finances, beyond being an end in your life, must be a means to fulfill yourself as a person; to do what you enjoy the most, to have time and invest it in your passions and share with the most significant people.

Within your personal budget, establish a savings or a fund that you will use to travel, develop your hobbies or spend it doing what you are most passionate about.

This fund is just as important as your savings and investments, because if you do not find pleasure or a greater purpose than your personal finances, you will hardly have the ability to develop the habits that work in the long term.

The percentage of this fund may not be very high, the important thing is that you save this money and use it doing what makes you happy.

It may interest you: 15 smart decisions that will improve your financial situation

In conclusion, make the decision to improve your finances in 2023.

Equipo the goals you want to achieve, change your mindset towards money and establish habits that automate your financial decisions.

If you want to learn more about this topic and master the game of money, I invite you to learn about all the resources, practical consejos, and tools included in the Rica Cabeza ebook.

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