In Brazil, most people do not have financial education, so consumption habits tend to be affected by this lack of education. The first step to understanding the importance of financial education is knowing that having balanced finances and paying your bills on time may seem simple, but it is not.
In August, the country had more than 62 million defaulters, according to a survey by Serasa. Although many people have adhered to these statistics due to the crisis caused by the pandemic, most people have acquired debts that they cannot pay due to a lack of financial control.
Due to a lack of financial education, it is common to find that someone has spent all the money they earned before paying off most of a month. For example, this includes charges related to the consumption of services and credit card installments.
Some people who are deeply in debt have even committed to putting the money they should have spent on food and housing. Changing these behaviors may seem difficult, but it is not impossible.
To do this, financial planning is necessary to align expenses with the income of the individual or legal entity.
As many Brazilians take on this out of necessity, and also do not have the basic knowledge of financial organization to maintain themselves in the business, they end up mixing personal accounts with those of the business itself.
One way to start this program is with the help of technology, as there are already several applications developed to help people organize their personal finances and develop awareness about financial education.
Through them, it is possible to obtain better financial control, because, by monitoring all your expenses and what to pay, you can more easily understand where your money is going and find solutions that allow you to save, which is essential to have a good financial life.
Also, it is important to follow the plan discipline and by doing so, you will quickly see your money grow to a surplus. But this does not mean that you should spend it on superfluous things.
Instead, let your money work for you by investing it, for example. You can use the remaining amount of your monthly income in less risky fixed-income investments. Fixed-income investments are as easy to use as savings accounts these days. A quick search can help you identify the best investment.
Last but not least, set your fixed and variable spending limits. When you know you need to spend more money, have a plan. Planning is the key word in financial education.
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Minimalism: what is it and how to achieve financial independence through it?
