Do you know what financial planning is? Because it is an essential tool for your life. With it, you can have a good organization of your finances, your household budget, expenses, debts, etc. And all of this is part of planning that is responsible for your financial balance being good in 2021.

Therefore, we know that ensuring good planning and organization in your financial life can make all the difference in the way you enjoy your money and also in how you live. The worst thing is barely starting a year and already being covered in debt and stressed about how you're going to pay it off, right?

So, in this article we have gathered a series of information and tips to encourage good financial balance. Did you like it? So keep reading because we will help you have a different year and feel more at ease with your spending and investments. Let's go!

Basically, having a good financial balance means not spending more than you earn. In other words, you keep your personal finances in balance between what comes in as your monthly income and what goes out in expenses. Thus, those who avoid debt, have their accounts up to date and have an unrestricted CPF, have achieved a good financial balance.

Furthermore, those whose finances are in real balance can have the security to make money reserves and even invest. So, how about checking out our tips on how to keep your financial life in balance? Well, just continue reading.

Many people are unable to achieve a good financial balance because they avoid financial planning for the wrong reasons, such as:

And this is all very far from reality! So take control of how you use your money. Understand that a lack of planning is the main cause of debt and your account always being in the red. Are we going to change this?

The main way to get out of this vicious circle of expenses, debts and a red balance is just through financial planning. And to help you, let's start by bringing you some tips on how to start the year debt-free and still get out of the red in 2021. 

By now you have already understood that the key to changing the way you spend and invest your money lies in financial planning. But there are many actions that can be done before, during and after planning that can make all the difference!

So we bring and explain one by one the main tips for getting out of debt, improving your relationship with money and avoiding debt this year. Keep reading and understand how!

So, in general, to achieve a good financial balance, it all starts with your financial planning. So, to do this you will need:

This way, it will be much easier and simpler to achieve good financial health in your life. This way, you will live with less stress regarding your money and your expenses. And who doesn't want to live with more peace of mind and financial balance, right?

Know what you intend to achieve from managing your finances. And they can be long, medium or short term goals.

So, in short, to have good financial balance with your planning, you need very clear goals, such as:

For those who want to escape debt once and for all and achieve the long-awaited financial balance, the essential attitude for change should be to start saving money. There is no better way to balance your finances.

Now that you've done all your pre-planning and have started to plan financially for 2021 in a more organized way, it will be easier to know how you will be able to save money.

Because planning guides you on how to spend less, thus leaving more money for your savings. And of course, the fewer outstanding debts to pay, the more money can be saved over time.

This way, you start to build an emergency reserve in case any unexpected debt appears. And to make good use of this reserve, you must learn more about investments and make that money yield more.

Check out some investment options that do not require a high initial value:

So, prioritize your financial balance through an emergency fund. Research more about finance and make your money yield more and bring security.

Don't let debts accumulate and become a big mess and snowball, if necessary, negotiate the debt. But financial planning will help you with this.

So with the list of your expenses and debts in hand, separate those that can be negotiated, which can be paid off, etc. Also try to exchange more expensive debts for cheaper options, this way you can achieve a better financial balance while paying your debts.

For example, it is more expensive to go into debt using a special check than through a payroll loan. It's good to keep an eye on these small details that can make all the difference.

Then:

And anyone who understands how to organize finances and values good financial balance already knows: installment purchases with credit cards are big villains.

Because purchasing in many installments will always make it easier for you to lose control of your finances, especially if you are no longer organized and have no idea how much you earn and how much you spend.

So, avoid installments whenever possible. Mainly very long installments with built-in interest rates. It may seem like little, but in the long term, what you will pay in interest can be very high.

But imagine how wonderful it would be if all that money spent on installments and fees could be invested in another more profitable way? This is how you should think to keep your financial balance up to date.

Then:

So, what do you think? It may seem silly, but these small attitudes when shopping and spending will make all the difference in balancing your personal finances!

Revolving credit may seem like a good option to alleviate financial difficulties when paying your credit card bill. But make no mistake, it will greatly harm your financial balance in 2021.

Basically, revolving credit is the type of credit in which the financial institution offers you the option of paying part of the invoice amount, and paying the rest in installments over subsequent invoices.

And this can give you the false impression of relief and debt payment, right? But in the end, depending on how many installments you need to divide your current bill, you could end up sinking into interest rates and creating more debt in the long term.

Because the entire remaining amount of your bill will have an interest rate on it. In other words, the more installments, the higher the final amount you will pay to the institution that provides you with the credit.

Therefore, avoid paying your credit card bill in installments! 

But for those who are already in the rotation, it is interesting to think about:

So, we hope it is clear that the best strategy for financial balance is to always avoid falling into revolving credit at all costs. This way, you lose less money and gain more peace of mind, right?

You analyzed your spending pattern, your debts and your attitudes that need to change in 2021, right? And one of the main villains of financial balance is impulse spending. 

Because it's often those impulsive purchases online, in apps, things that in the end we didn't really need.

But of course you don't need to stop spending and deprive yourself of small pleasures. However, do this consciously and prioritize your financial balance.

In other words, before making that impulsive expense, think about two things:

For good financial planning, especially for those who are in debt, it is essential to cut unnecessary expenses wherever you can. And we're not just talking about reducing shopping and traveling.

It is necessary to reduce costs in everyday life, both at home and on the street. 

At home you can:

For example, if your water bill is very high, try to take shorter showers and always turn off the taps when brushing your teeth and washing dishes. In the case of a high electricity bill, you can turn off lights that are on unnecessarily and turn off electronic devices that don't need to be plugged in all the time.

Regarding spending outside the home, you can:

Regarding travel expenses, rethink whether it is really viable to keep a car, or purchase a new one. For those who spend a lot on transport apps, you can try to start using public transport more, for example.

You can redo your shopping list and find products from cheaper brands, or remove products that are not really necessary. You can also reduce going to restaurants and using food delivery apps.

This way, you will understand where the expenses are that could be harming you completely unnoticed. They may seem innocent at first glance, but in the long run they are very dangerous. Always keep an eye on unnecessary expenses.

If it is difficult to reach the end of the month with a good financial balance, you can try to optimize your resources through extra income.

Because there are many autonomous and freelance activities that can bring extra income every month. So, even if it's little, the extra income in the long term can make a lot of difference in maintaining a good financial balance! 

So, here are some ideas for extra income:

In this case, you need to improve your personal financial organization. In other words, it is your household finances and personal and family expenses that are included in your financial planning.

But all of this will only be possible through the knowledge you have about financial education. Because only with this knowledge will you know how to make decisions that help you keep your finances in balance until the end of the month.

Therefore, what is taken into account for a good personal financial balance is the way you organize your expenses and debts, in relation to your income. In other words, it basically doesn't lose control, and it doesn't let more money go out than it comes in. 

And also your possible investments in financial institutions. Because anyone who wants personal financial health follows good organization and does not lose control of their money, even if it is distributed across several areas.

In other words, those who know financial education also have greater possibilities of having a better financial balance. So, invest in yourself and start understanding more about your personal finances in 2021.