In this post I will be talking to you about personal finances
When we think about buying a house, saving for our retirement, for children’s education and even to manage family budgets more effectively, today requires knowledge of personal finances, so we must train ourselves to manage our finances and achieve financial independence.
Financial independence is a term that is heard and read on social media, television and radio. It is basically to ensure that passive income, which comes from investments, is greater than expenses, through a combination of savings, intelligent investment, investments in the stock market, real estate, creating your own business, generating income from the Internet among others.
In life we go through different financial stages and our decisions and priorities depend on the position we are in.
- Accumulation phase Occurs when we are between 30 to 40 years before retirement, here we finance mortgages for homes, our children’s education, manage cash flow and save for our retirement
- Distribution phase. It starts with retirement, here you create a retirement strategy, it’s about reducing taxes, and maintaining the same standard of living.
- Preservation phase. Here we change the focus on investments and how to protect them to maintain income and this becomes a priority. It is also very important to try to reduce the impact of inflation.
- Transparency phase. It is the last stage of the retreat, here we begin to think about how to transfer our assets to our children.
For this, it is essential to have planning of financial goals and for this one of the tools further Important is the budget, trying to ensure that expenses do not exceed 75% of and achieve savings of 10 to 25% of total income.
Some advices from books I reviewed
Save, train, purchase insurance that suits your family, home, health, etc. needs.
Invest in the financial market the surpluses that you accumulate or have saved in some low-risk investments or fixed income, if you are a new investor and want financial security.
If risk is not a problem for you, increase it through stocks, variable income papers, investments in investment funds such as portfolios composed of fixed income, variables in other currencies, and highly rated bonds.
Conclusion
In today’s post I have briefly explained aspects related to personal finances, a topic of great importance if you have not achieved financial freedom yet and if you are like me at the stage of thinking about retirement.
In my next post I will talk about life insurance.
Freelancer professor 