How To Organize Your Budget And Put Your Financial Life In Order

Did you spend too much on your last vacation? You are not alone. A survey conducted in 2015 by consumer credit news agency Experian found that 68% of people spend too much while on holiday. In addition, 40 percent of respondents said they had accumulated credit card debt while on vacation, and 46 percent of respondents said they used their credit card to fund their vacation.

Even though you have not traveled anywhere last summer, with all the activities, drinks and meals, our budgets can be easily matched.

Assessing the situation

Assessing the situation

For those who do not have an emergency fund to use as plan B, it is important to organize with the bills before turning a snowball. And with next summer coming, now is a good time to get ahead by organizing your bills and putting your financial life in order. The first thing you need to do is look at your financial situation and face any debts.

Check your bank statement, card bills and other bills you have. Put together all the transactions and make a full balance sheet to see how much money you owe. Getting to see everything in one place is essential to understanding the situation.

Identifying Expenses

Then it’s time to draw a budget by first making a list of your monthly expenses. Based on your current budget and essential expenses, how much money can you allocate to pay your debts and how long will it take for your debts to be paid?

You will then need to analyze the superfluous expenses that you can reduce, but not necessarily remove completely. With a few tweaks and a little creativity, you can pay off your debts while still enjoying and enjoying your life.

Cutting expenses

Cutting expenses

Identify ways you and your partner can reduce expenses. For example, can you two bring lunch to work instead of buying lunch every day? Can you use public transport instead of driving a car? Can you ride your bike or go to work instead of spending with transportation? Can you get rid of your monthly gym membership and work out at home or at a park?

Once you have identified ways to reduce or eliminate expenses, you may have a lot more money saved. If you have allocated money that you could save to pay your debts, how long will it take you to be debt free?

Caring for debt

Caring for debt

If you’ve worked out your budget and it looks like your debts may affect more than a few months, it might be a good time to explore an additional source of income.

Do you have a spare room that you can rent on Airbnb? Can you take a part-time job for a few months? Does your workplace offer overtime for additional hours worked? Can you sell old things that you no longer use? Think of creative ways to make extra money to deal with your debts.

Think long term

Think long term

If you are financing part of your debts with credit cards or using your overdraft, look for other options to pay less interest. This interest accumulates over time and you end up paying a lot of money to the bank, not to mention the hidden fees and catchwords that always appear in your statement. Good lender online loans are the ideal solution for those who are tired of paying high interest rates to banks and need more flexibility to pay their bills.

How to borrow a loan from a friend and receive a yes!

Borrowing money from a friend is often easier, safer, and less bureaucratic than asking the bank for money. However, borrowing money from someone can be annoying and annoying if done wrong. So we’ve prepared these 6 steps for you to apply for a loan successfully.

1 – Choosing the right person:

Separate the relationships that give you openness to talk about business, investment and money, and of course, that you know that you can borrow the amount. If that person already has money invested in savings, stocks or other investments is a plus.

2 – Submit the application as an investment:

Repaying the loan with interest is the best way to make the application attractive. Otherwise, it’s like asking for a gift. The average interest that banks charge for a personal loan is 7.05% per month, other lines such as overdraft or the revolving credit card amount to up to 15% per month.

However, if your friend invests in savings, CDI or other common investments, the average earnings is up to 1% per month. Compensating with 2 or 4x the average saving gains is very attractive to the investor, and even then, you would pay less interest than the bank’s interest.

3 – Formalize the loan:

Insist on formalizing the loan with agreed amounts, interest, installments and forms of payment. This will give more security to your friend. Getting with an already formatted proposal and with advantages to the lender is a great way to start a loan application. You can formalize the loan by making a contract with all the agreed data.

4 – Prioritize payment:

One study found that the main reason creditors refused to lend money to a friend was the fear of having to collect payment from them and that would end the friendship or generate friction between relatives. So it is critical that you pay off this debt as if you were paying a bank.

You can propose to pay a fine and interest if you are late. Showing this concern is critical to receiving a yes.

5 – State the reason for the loan :

If you need money, it’s for some specific reason. Showing the specs for this reason can be a way of validating your request. If you have expensive debt, such as overdraft or credit card, show that you want to repay this debt for cheaper debt.

If money is for a new business, show the planning and how well prepared you are to get this business to work. In addition, people do not tend to lend money for consumer items like buying clothes, shoes and other non-essential items.

6 – Prove ability to pay:

Do not take out a loan if you do not know how you will pay or have not done any financial planning. You can show that you have bank limits such as overdraft or credit card. Also, you prefer cheaper debt or you’re waiting to receive a bonus, 13th or other amount that will help equalize your debt. There you can pay the installments without problems.

Remember that your friend is not a bank, he can not do a risk analysis of his profile alone, so take the information that you think is relevant to him.

Bonus Tip: