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The long-awaited financial freedom is something desired by all Brazilians.
After all, according to Serasa, only in 2021 were more than 60 million defaulters in Brazil, an alarming and worrying number.
If you are part of this segment of the population, don't lose hope!
It is still possible to achieve your financial freedom and it is never too late to learn how to plan and put your plans into practice.
Thinking about helping you with this, the ConsultaCred team developed this complete content, with everything you need to know to learn how to “turn the game around” this year. Check it out!
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What is financial freedom?
Financial freedom, unlike what many people think, is not about wasting money.
Quite the opposite, it’s knowing how to save and where to invest the money you have left over every month.
It's knowing how multiply the money you earn and invest in new sources of income passive, which will take you to new financial levels.
This way, you won't have to worry anymore. If unforeseen events happen, you'll have money left in your account to reverse the situation.
The same happens if you want to open a new business and need funds for it: you don't have to worry, since you have the amount available in the bank.
But be careful not to confuse freedom and financial independence! The terms are different and portray complementary scenarios.
Differences between financial independence and financial freedom
Having financial independence means having autonomy about your own finances and know exactly what comes in and what goes out every month.
Already the Financial freedom is the level that everyone wants to reach: make choices, purchases and investments without worrying about the price.
How to achieve financial freedom?
So how is it possible to achieve this financial freedom and feel carefree about your future and stability?
The answer is simple: just follow a solid step-by-step guide that helps you climb each step until you see your money grow and multiply, instead of disappearing “out of nowhere” every month.
1. Know your expenses and outgoings
The first step is know well how much you spend compared to your salary fixed every month.
To do this, understand that there are two types of expenses: fixed and variable.
Some examples of fixed bills, which receive bills every month, are:
- the rental installments;
- rates of financing;
- loans;
- water and energy bills;
- subscription to streaming services, gym and internet;
- food and supermarket expenses;
- college or school fees for children;
- fuel and others, depending on your situation.
Variable expenses, which may or may not be charged monthly, are:
- leisure, with trips to the mall, cinema, parties and outings;
- gifts on special dates such as birthdays, Christmas and New Year;
- purchase of clothes, shoes and accessories;
- investment in knowledge, with courses, books, lectures and workshops;
- and many others.
To track where your money is being spent, the best option is to invest time and write down all your expenses, whenever this happens, whether in a notebook or in a simple spreadsheet.
2. Avoid getting into debt
When you have everything written down and start to see “the damage”, you become more aware and avoid acquiring new debts.
The truth is that acquiring debts knowing that you already owe is a huge danger, especially if you have a family to support.
Speaking of family, talk to your family about the need to cut expenses and ask for everyone's collaboration so that you can spend less and save more.
3. Have a financial plan
In addition to these steps, you need to have good financial planning. But what does that mean?
Financial planning consists of analyze all your expenses and sources of income, in addition to surveying how much you owe, who you owe it to and what the cumulative interest rates are.
With this data in hand, it is time to draw up financial goals and action plans.
Analyze whether you will need to earn extra income or pay off your debts in more installments to be able to pay them off little by little.
4. Make investments
With good financial planning in place, with action plans drawn up to pay off all your debts and avoid new expenses, it is time to think about investing.
If you follow all these steps to the letter, it will be entirely possible to have money left over in your account each month.
This remaining money should be used for investments.
There are many forms of investment today, divided into two large groups: fixed income and variable income.
Fixed income consists of the arrangement of investment assets with dates and values fixed at the time of purchase.
Variable income, as the name suggests, is not as predictable and its values can change.
5. Have an emergency fund
Your chosen investment method can be useful for building up your emergency fund, which is a sum of money saved for when unforeseen events arise.
The best way to building your emergency fund is investing money monthly in fixed income securities, which are more stable and predictable.
Just be aware of the investment's validity: for an emergency fund, the ideal is that your money can be withdrawn at any time, and not on a specific date.
To make this important choice, you can count on the help of ConsultaCred!
We offer the best financial products for investment and help you according to your needs. It's worth checking out!
Count on ConsultaCred's help to find the best financial products!
Conclusion
Did you realize that achieving financial freedom is not impossible, nor is it a “seven-headed beast”?
Enough know which paths to follow and how to act in relation to your money, always avoiding new debts and investing the surplus at the end of each month.
If you enjoy learning about finance and investments, you need to check out the other articles already published on the ConsultaCred Blog. Our goal is to help you achieve financial freedom as soon as possible!
