Category: Finance

Tips Basic Personal Finance

Having your money in order will help you reduce daily stress, and it will also serve as a basis for managing the capital of your company.

If you’re like most entrepreneurs, you’ll likely need to split your time between managing your team, getting sales, improving customer service, promoting your business, and creating new products or services. The last thing you want to add to this mix is taking care of your personal finances (what a horror!). However, if you don’t have your home finances in order, you’re just adding more chaos and stress to your life… you realize it or you don’t.

These 7 tips will allow you to make sure your personal finances are in order before continuing to expand your business. Put them into practice and ensure your economic (and also emotional) stability.

1. Edit yourself

Take the time to read about personal finances. Every week, schedule “money” appointments with yourself and spend a few hours managing your personal finances and reading books, magazines, sites or finance blogs. The more you know about your own finances, the more confident you will have in managing your money in the long run.

If you need more help, consider hiring a financial coach to help you create a financial plan to reach your goals.

2. Check your credit regularly

Your credit report is like a file of you and your credit history. It basically tells lenders how risky you are, and whether or not they should lend you money. When it comes to buying a car or home, it’s desirable that your credit report is in great shape, so you can qualify for good rates.

Create a habit of reviewing your history at least once a year to confirm that everything is in order. Do it on a special date (such as your birthday) to make it easy for you to remember and maintain monitoring. You can access your history on sites like the Credit Bureau.

3. Make a budget

While this sounds very basic, many entrepreneurs don’t have a fit budget to monitor their monthly income and expenses. You can use digital tools as apps to monitor your personal finances or just a document in Excel. No matter which option you choose, make sure it fits your lifestyle.

If you really want to fix your finances and take the lead financially, you need to spend time and energy updating your budget every week. This will help ensure that you don’t spend more than you earn and that you’re able to save for your financial goals.

4. Self-motize your finances

Technology makes it much easier to manage finance every day. Find that most of the process is automatic. You can use automatic online transfers or pay your bills online each month. This will help you not stress about paying your bills on time and generating extra interest or charges.

If you’re concerned about automating your account payments, you can set alarms on your calendar (on your computer or smartphone) that remind you of payments. The more you can automate your finances, the less worries you’ll have on a daily basis.

5. Pay debts

Make a plan to pay off all your debts as soon as possible. Start by making a list of all your debts (credit cards, car credit, educational credits, etc.). Includes current balance, minimum payment per month, and interest rate. Then review your budget to determine how much money you can add to your debt payments.

From there you can do research on strategies to reduce debt so that you confirm that you are paying them off as efficiently as possible. When you’re working on debt reduction, it’s important that you have a “mattress” to pay for any emergencies that arise along the way.

6. Build your own mattress

Having a mattress of money is an essential part of your finances. It allows you to use the money to pay for unplanned expenses or emergencies that may appear in your day-to-day life, rather than increasing your debt or investing in the long run.

As an entrepreneur, you may want to have a six- to 12-month mattress of your fixed expenses. It will allow you to pay personal bills and not worry if you need to reduce your income due to the flow of the business.

7. Invest outside your business

While it’s very important that you always invest in yourself and your business, you shouldn’t have “all the eggs in the same basket.” Diversification is extremely important as it will lower your investment risk in the long run. Work with a financial glider to create a portfolio of long-term investments that includes stocks, bonds, and Cetes that align with your own financial goals and risk tolerance.


How to Be a Hero Who Has the Superpower to Make a Lot of Money

Identify which villains and cryptonitas are in your portfolio to become a financial superhero.

The opinions expressed by Entrepreneur’s collaborators are personal.

Have you ever identified with a superhero? Perhaps, with his strength, his intelligence, his speed, with his speed, etc. Even surely as a child you dreamed of being a superhero, however, as the years go by, we lose that illusion and realize that those things only exist in movies.

But did you ever think you had a chance to be some other kind of hero?

How about a hero who has the superpower to make a lot of money?

Yes, something like a financial superhero.

I mean when you generate wealth from who you really are, from your financial superpowers, that’s when your chances of success increase significantly and you feel that nothing can stop you.

When you’re in control of your financial life, and that gives you an unparalleled sense of tranquility because you’re prepared to face any adversity the environment can bring.
You’re protected, and that gives you the feeling of great personal power, even realization.

And how can you work to become a financial superhero?

First of all, you should work on identifying some of these points that I share with you below:

Your unique detonators: What’s taking you down a good financial path and what’s got you on the wrong track. I mean, maybe you realize you tend to do a lot of emotional expenses. Or, maybe you’re very organized and keep a daily look at your finances. List what detonates good and bad habits.

Your super financial powers: What can you do better than anyone else? What talents do you have? By identifying this, you’re going to realize that you can find different ways to increase your income. How? If you are excellent in any language, if you cook delicious, if you know graphic design or social media management, etc., you can capitalize on your talent in a way that generates extra sources of income.

Your villains and cryptonites: What behaviors or habits do you have that negatively impact your finances? It could be being extremely indebted, paying for everything with your credit card, just having a source of income, making purchases you don’t need. List what puts your personal finances at risk.

Your allies and amplifiers: What strategies can you take to create better habits? Maybe you can implement a monthly budget that allows you to control your spending. Or, you can start paying off your debts and delete your credit cards. Think about actions you can take that are your financial allies.

Your action strategies: Now that you know your strengths and weaknesses in managing your personal finances. What can you do to improve your current situation? You need an action plan, just like in superhero movies.

You must draw a financial map that takes you step by step towards your goal and adhere to it.

If you don’t have a plan, you won’t make it to the finish line.

Remember, if you don’t take care of your personal finances, no one else will do it for you.