Opinion – Marcia Dessen: Reflect on your financial mistakes and successes

Another year ends, and this one was quite different, wasn’t it? What doesn’t change is our willingness to reflect on what we got right and what we went wrong during the year. I’m going to list some good financial decisions and some bad ones, hoping your list gets more hits, a sign that you’re using the money to your advantage.

hits

Make financial planning, control expenses, set priorities and limits. Plan your life first, then your finances to make sure you spend your money well. The happiness we all want isn’t in the money, it’s in what we decide to do with it.

Maintain a financial reserve for emergencies. Knowing that you have the money to face adversity will make you feel free to find solutions and solve problems. The reservation will be “your bank” at the time of the squeeze.

Think and plan before taking on debt. Before getting into debt, plan well to define how much money you will repay the loan with, what expenses will be reduced or eliminated in order to fit the new commitment into the budget.

Pay yourself first, don’t expect to be left over to invest in your life projects. The leftovers are for the superfluous.

Finding the balance to take care of the present and the future. Save a value that isn’t too much, that sacrifices the gift; not even a little, which compromises the quality of life in the future; enough, to live the life you want.

Always invest with a purpose. Defining the reason to invest encourages saving and helps you choose the most suitable investment. Study and expand your investment knowledge. Thus, you will have the capacity of discernment and critical sense to evaluate what works and what doesn’t work for you.

errors

Taking on debt to finance consumption. Plan your life, make a good budget, have a financial reserve, use credit just to evolve and build equity.

Disrespect your investment risk profile. Respect your investor profile aware that there is no such thing as a risk-free investment. Don’t take risks if you are not knowledgeable and unwilling to put some of your capital at risk.

Believing in false advertising that offers guaranteed, risk-free returns, exorbitant profits in a few days, promise to earn money without leaving home and an invitation to invest carefree during the crisis. Strong evidence of coup. Remember that when alms is too much, the saint is suspicious.

Use your credit card to spend more than you can and then pay your card bill in installments. The card limit is what fits in your pocket, not what you were given. Reduce the number of cards and the amount of limits that suit your financial reality.

Put a line called “credit card” in the budget. It is just a means of payment. List each of the expenses incurred in the category to which it belongs and assess whether you are spending your money well, on the things that really matter.

In love, scheduled the wedding, but still haven’t talked about money? Know little about each other’s financial lives? Marriage changes your life and your finances too. Don’t leave this conversation for later.

Add a new purpose to the list of assertive decisions, adjust others, and exclude at least two bad behaviors you identified with.

The year that ends was not easy, but it provided opportunities for learning, both individually and collectively. A retrospective reflection of our mistakes and successes will allow us to do better in 2022. May we all have a happy New Year!