How to organize personal finances – 01/07/2024 – Market

One of the most common promises made at New Year’s Eve is to organize your financial life. Whether it’s clearing their name, better controlling their expenses, their household budget or starting to invest, the majority of Brazilians have not yet achieved their ideal financial balance.

Datafolha research from December indicates that two thirds do not have an emergency fund and only 8% are preparing in some way for retirement other than with the INSS (52%) or private pension (13%). Worse, 35% of Brazilians are in default, according to a November survey by Serasa. There are 71.81 million with late bills.

According to financial planners, all of these situations are manageable. Just get organized and set realistic goals.

Grab a notebook, make a spreadsheet on your computer, open the notes on your cell phone or install the app of your choice and follow, step by step, these professional tips for getting your personal finances up to date in 2024:

1. Map your cost of living

According to Carol Stange, certified financial educator, CVM (Securities Commission) consultant and analyst for the social network Invight, the first thing to do, regardless of the situation, is to write down all expenses. All of them.

“I can’t talk about the future without this. I need to know how much I cost, or how much my family costs, accounting for all the bills, including birthday present, IPVA, school supplies, supermarket, pharmacy, etc.”, says the financial planner

To do this, it is possible to use what was disbursed in 2023 as a base. To adjust it for 2024, add 5% to the cost, which is close to the 4.46% inflation predicted for last year, according to the Central Bank’s Focus survey carried out with economists.

According to Luis Felipe D’Avila, financial consultancy supervisor at Neon, the more detailed the mapping, the better. “Restaurants, for example, cannot include food, they are leisure”, he says.

For those who do not have such detailed records of expenses, the tip from Renan Asmus, Nova Futura Private investment advisor, is to use a conventional month, in the middle of the year, without being a festive or travel period, to obtain an average monthly earnings and expenses. With it, the flow of expenses is made, which includes salary and income, such as rent.

“A very common mistake is to rely on salary adjustments or bonuses that are not in the contract, which is not prudent, as it is not guaranteed. Most companies adjust according to the minimum wage”, says Asmus.

Then, it is necessary to account for all assets (money in the bank, emergency reserves, investments, vehicles, properties, among others) and all debts (late invoices, financing, consortiums, loans, etc.). “The more detailed, the better,” says Asmus.

According to the expert, the value to be considered when accounting for assets is the lowest possible. In other words, the one that appears in the Income Tax declaration referring to the purchase made years ago or the one in the Fipe table. This way, you can count on money that is guaranteed, without speculation.

With the sum of everything you have and owe, you can check whether you are in surplus (you have money to pay for your commitments) or whether you are in debt (you owe more than you have).

2. Adjust expenses and pay off debts

If you are in debt, or have expenses equivalent to earnings, you need to readjust your financial habits so that you have more money left at the end of the month.

The priority is to save as much as possible to equalize commitments as soon as possible. The longer you owe, the more you owe.

“Distance yourself from the things that make you spend money. Take advantage of Desenrola and resolve your life to have access to good credit and be able to obtain better financing”, says D’Avila.

In addition to saving, it could be a case of selling goods, doing odd jobs or getting a part-time job.

“Sometimes it’s worth selling the car to pay off debts faster and cheaper, especially if the person lives in a big city,” says Asmus.

For payment, prioritize debts with the highest interest rates, or those that threaten your assets, such as financing the house where you live.

To pay them off, it is always worth negotiating with the creditor to obtain a discount or better payment terms, such as extending the debt.

At this time it is very important to do the math and think calmly, experts say. Depending on the rate charged, it may be worth taking out a loan at lower rates to pay it off. Or, sell some asset to pay it off in cash, with a greater discount.

“If you have a debt that you identify that you will not be able to pay, you either renegotiate it, or you will end up with a bad name. Get ahead of the curve and look for the institution to renegotiate”, says Asmus.

However, if your name is already dirty, you need to check whether your debt is still with the original creditor or whether it has been sold to another institution. To do this, you need to contact the originator.

3. Set aside money for emergencies

After budget adjustments, it is time to look at investments. The first of them is not exactly an application, but a safety cushion: the emergency reserve.

It is necessary for unforeseen situations, such as dismissal, accident or illness, and does not depend on socioeconomic status. “It’s not something that only those who aren’t rich need. Millionaires need to have a reserve. We all need it”, says Carol.

The reserve must be equivalent to at least six months of expenses and can reach one or two years, depending on the stability of the field of activity and the level of expenses. “It should be a comfortable period to be able to relocate in the job market”, says Asmus.

“If you are a family man who supports everyone at home, you are the one who most needs an emergency fund. It is prudent to save to build it up”, adds the expert.

The reserve must be allocated to a fixed income investment with daily liquidity, such as a CDB from a large traditional bank or the Treasury Selic. Both follow the Selic, and tend to ensure that the money invested yields above inflation and also above savings.

Currently, the profitability of savings is 8.07% per year, against 11.91% for the Treasury Selic 2029 and 11.75% for CDBs that yield 100% of the CDI. Even with the savings IR discount, the Treasury and CDBs are more advantageous.

What’s not worth it is leaving that money in the bank account, no matter how much income it earns. In addition to the temptation to use the money available, some of these accounts pay back the amount deposited only after 30 days and, often, the payout is lower than that of a CDB or the Treasury Selic.

According to Carol, to build up the reserve, as well as to pay off debt, it is worth temporarily reducing expenses or doing something to guarantee extra income, such as freelance work.

“Many people avoid this because they think it will be eternal deprivation. Never buying a blouse or traveling again, but not necessarily. It can be temporary, a readjustment to keep expenses under control. Investment is perseverance and not a short shot. You can’t build a reserve from one day to the next, it usually takes between six and eight months”, says Carol.

4. Invest

With the emergency fund created, it’s time to invest a portion of your salary monthly.

According to Carol, before choosing where to allocate your money, you need to define an investment objective. “Is it changing cars? Buying your own house? Renovating an apartment? And in how long? Is it something short or long term? When we save or invest without a goal, we can lose motivation and planning.”

Then, take your risk profile test to find out which type of investor you best fit into: conservative (who does not accept taking risks), moderate (who accepts taking a little risk), bold (who tolerates risk well). risk) or aggressive (willing to take a lot of risk in search of greater and faster returns).

The experts’ tip, regardless of the profile, is to start researching to understand the products. Then, read the terms of the purchase contract for that product with the broker or bank and compare it with other products on the market.

“It’s okay to make mistakes in the learning curve if you’re young. But, if you’re close to retiring, there’s little room for error. It’s scary at first, but you get used to the alphabet soup,” says Carol.

When it is time to invest the money, it is recommended to start with fixed income, diversifying between post-fixed products, whose remuneration varies over time according to the Selic, pre-fixed products, with predetermined remuneration at the time of purchase, and hybrids , which combine pre-determined interest rates with the variation in inflation over the investment period.

The ideal, according to experts, is to diversify your investment portfolio little by little, always according to your profile.

They still recommend investing 20% ​​of what you earn every month. “Below 10%, it is not very relevant. And, the bigger the objectives, the higher the investment percentages. Those who start investing much earlier, can even start with less”, says Carol.

“There are people who earn well, have no debt, and only save a little because they end up spending everything they earn, and then they don’t see their investment grow, which can be discouraging. If the contribution is not relevant, the person dies on the beach” , adds the planner.

See an example of a monthly budget and fill in your expenses:

Revenues:

• Salary: R$

• Rental income: R$

• Freelance/jobs: R$

Fixed expenses:

• Home:

  
  

• Transport:

  
  

• Food:

  
  

• Health:

  
  

  • Health plan: R$

  • Medicines: R$

• Education:

  
  

• Telephony:

  
  

  • Cell phone plan: R$

  • Internet: R$

  • TV/Streaming: R$

• Insurance:

  
  

  • Life insurance: R$

  • Home insurance: R$

Variable Expenses:

• Leisure:

  
  

• Clothing:

  
  

• Savings:

  
  

• Others:

  
  

Total fixed expenses: R$

Total variable expenses: R$

Total expenses: R$

Available balance (income – expenses): R$