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Consulting Insights

Tips to improve your personal finances

Useful advice to improve your financial health.

1. Get financial education.

Take time to learn as much as possible about finance, there are a lot of books, magazines and blogs which talk about how to manage personal finances, this way you will have a clearer idea about this matter.

2. Check your credit record.

Credit record shows how risky you are to pay debts; when you are going to buy a car or a house, it is important that you have good credit record. You must create the habit to review your records to make sure everything is OK.

3. Create a budget.

Many of us do not have a budget in order to monitor our monthly incomes and expenses. Nowadays there are many apps that help us with this monitoring and getting an idea about our weekly or monthly spending and budgeting, therefore knowing where our money goes.

4. Automate your finances.

Now using technology, we can make our processes easier, we can wire money automatically, for example, pay our services by internet, as well as schedule our payments and this will help us reduce stress and keep payments up to date.

5. Pay your debts.

Make a plan to pay your debts as soon as possible, try to make a balance with the amount you have to pay, and the interest rate of the debt; check your budget to determine how much money you can add to this debt.

6. Create a buffer fund.

It is important that you have a buffer fund, it will allow you to use money for unplanned and unexpected payments. And this way we will also have a backup whenever we need money for an emergency or something like that.

7. Invest outside your business.

You should not keep “all eggs in one basket”. Diversification is very important to diminish long term risk.  Maybe you can create an investment portfolio, which may include stocks, bonds, CETES, always taking in consideration the risk you have to take.

Bibliography: 7 consejos básicos de finanzas personales

Xóchitl H.

Xochitl was born in Monterrey Mexico, with a BD in International Business. When she is not working she enjoys exercising, running, listening to music, watching soccer games and playing it too. Numbers are her passion. She is currently finishing her Masters in Finance.