Organizing your personal finances is a fundamental step towards achieving peace of mind, avoiding debt and making your dreams come true. However, many people don’t know where to start. If you are a beginner in the world of financial education, this article will help you take the first steps in a clear and practical way.
1. Understand your financial reality
Before anything else, it’s essential to understand your current situation. This means knowing exactly how much you earn, how much you spend, and where your money is going. Many people avoid this step out of fear or embarrassment, but facing the numbers is the first step to change.
Start by writing down all your sources of income (salary, extra jobs, pensions, etc.) and then all your expenses — fixed (such as rent, bills, monthly payments) and variable (such as leisure, eating out, shopping). You can use a spreadsheet, a notebook or financial tracking apps.
2. Categorize your expenses
After listing all your expenses, organize them into categories: housing, transportation, food, health, education, leisure, among others. This makes it easier to visualize your spending habits and allows you to identify where you are overspending.
Small daily expenses often go unnoticed, but added up over the course of a month, they can represent a significant portion of your budget. This awareness is essential for making more assertive adjustments.
3. Set a budget
With a clear view of your reality, it's time to set up a monthly budget. The goal is to set limits for each spending category, while always respecting your income.
A well-known rule is 50-30-20 rule:
- 50% income for basic needs (housing, food, transportation);
- 30% for desires and leisure (travel, tours, non-essential purchases);
- 20% for financial priorities (savings, investments, debt repayment).
This proportion can be adapted according to your profile, but the most important thing is to maintain balance and avoid spending more than you earn.
4. Create financial goals
Having goals is what gives meaning to financial organization. Think about short, medium and long-term goals: paying off a debt, taking a trip, buying a car, building an emergency fund or investing for retirement.
Set values and deadlines for each goal. This makes it easier to plan and stay focused. Goals help you avoid impulsive spending and prioritize what really matters to you.
5. Build an emergency fund
An emergency fund is a sum of money saved for unforeseen events, such as job loss, health problems or unexpected expenses. Having this security prevents you from having to resort to loans or credit cards in difficult situations.
Experts recommend accumulating between 3 to 6 months of your monthly living expenses. The ideal is to save this money in a low-risk, high-liquidity investment, such as the Tesouro Selic or an interest-bearing account.
6. Avoid debt and use it wisely
Credit (cards, loans, financing) should be used responsibly. Many Brazilians get into debt due to a lack of planning and end up compromising a large part of their income with very high interest rates.
If you already have debts, prioritize paying them off, starting with those with the highest interest rates. Negotiating with creditors, cutting expenses, and using part of your extra income are all valid strategies.
Avoid paying for unnecessary purchases in installments and always ask yourself: “Do I really need this now?” or “Do I have the money to pay in cash?”
7. Start investing
Many people think that investing is something distant or only for those with a lot of money. But this is a myth. Nowadays, with less than R$50, it is possible to start investing in options such as Treasury Direct, CDBs or funds.
Investing is the way to make your money work for you. Start by studying basic investments, understand your investor profile (conservative, moderate or bold) and, little by little, diversify your portfolio.
8. Educate yourself financially
Financial education is an ongoing process. Reading books, following reliable channels, taking courses and talking to people who understand the subject are effective ways to learn and make more informed decisions.
Among the most recommended books for beginners are:
- Rich Dad, Poor Dad – Robert Kiyosaki
- Spare Me! – Nathalia Arcuri
- The Richest Man in Babylon – George S. Clason
Additionally, there is a lot of free content on the internet, such as YouTube videos, podcasts and specialized blogs.
9. Review your organization regularly
Life changes, and so do your finances. That’s why it’s important to review your budget and goals periodically. Make adjustments as needed and celebrate each achievement, no matter how small.
Financial organization is not a destination, but a journey. With discipline, patience and consistency, results will appear.
Conclusion
Getting your finances in order may seem challenging at first, but it is an essential step towards achieving freedom and peace of mind. You don’t need to be an expert: with small actions and consistency, you can transform your relationship with money.
