Financial planning: where to start?

First, let's be honest: we know that financial planning isn't the norm for most people, right?

At first, maybe you are on this list.

This is one of the reasons why 851,000 Brazilians have lost sleep over debt, according to a survey by Serasa Experian and Opinion Box. But how can this change?

Since Geniuzz's mission is to help you make the best decisions that impact your wallet (and your emotions), we've prepared four suggestions on how to start financial planning. 

#1 Analyze the current scenario and set objectives

How is your financial life currently? Answer honestly. The first step to intelligent financial planning is to observe reality and set goals to transform it.

If you're in debt and have your name listed on credit protection agencies, for example, decide to cut back on some unnecessary expenses and approach your creditors to try to negotiate your debts. 

Now, if you're up to date with your bills, how about taking a step further and starting to build an emergency fund and thinking about some investments? 

It all starts here. 

#2 Use the 15-35-50 rule

There are several useful "formulas" to help you build your financial plan. One of them is the 15-35-50 rule. After analyzing your income and expenses, try to establish the following criteria:

• 50% of your income should be allocated to essential expenses, which are those necessary to maintain your daily life, such as food, health, education and transportation. 
• 35% of your income should be allocated to expenses related to fun, leisure and other pleasurable activities, such as gym, restaurants, shopping, travel.
• 15% of your income should be allocated to financial obligations, from paying off debts and paying off mortgages to building an emergency fund and savings for the future. 

#3 Debit or credit?

The rule here is this: a credit limit isn't equivalent to available funds. You may have access to the product at that moment, but you'll have to pay when the invoice arrives.

So, keep an eye on your purchases and monitor your spending. Many banks allow you to temporarily reduce your credit limit. It's a good exercise in self-care. 

Whenever possible, try to pay cash or debit to avoid debt. You'll get the product at a lower price and avoid the trap of splitting an item into multiple installments and then being unable to pay later.

#4 Use a financial spreadsheet

The financial spreadsheet will be your best companion when planning your financial health. 

With the help of this tool, you can track all your expenses, analyze whether you're within your target, and, if necessary, adjust your actions to avoid going over budget.  

And you know what's best: Geniuzz has prepared an exclusive financial spreadsheet to help you begin your journey toward building your wealth.

Take advantage and download yours now!

DOWNLOAD YOUR SPREADSHEET