Finance for non-financers – see where to start
The complete guide to finance for non-financers!
Announcements
If you're new to the world of personal finance and investing, it's time to start understanding the basics of finance for non-financial people.
After all, although it is not difficult to understand the concept, there are several details that can generate doubts for beginners.
And if you want to understand more about this subject, continue reading!
Where to start studying finance for non-finance professionals?
The first step is to understand the main concepts of financial education.
This way, you will know at least the basics about money. This knowledge will help you both in the present and in the future.
Financial education is the best way to change your reality and actually start earning more money and increasing your earnings.
It is worth investing in courses, books, lectures, watching videos, reading articles on the subject, among others.
The good news is that there is a lot of free, quality content out there! If you can absorb the content and apply some of the lessons learned to your daily life, it will be much easier to organize your finances.
What are the three pillars of financial education?
The three basic pillars of financial education consist of:
• Save money
• Make money
• Invest in money
1. Save money
Saving money is important so that you can better deal with unexpected events.
A financially intelligent person should know what their main income and expenses are, so that they can organize themselves better.
Not spending all the money you earn is essential so that during emergencies or when good opportunities arise, you can use the money from your financial reserve, without having to resort to high-interest loans.
This means that saving money is important so that you can deal with financial contingencies with more peace of mind and achieve certain financial goals, such as taking a trip, changing cars, among others.
2. Make money
You already know the importance of saving money.
However, just saving is not enough to change your financial reality.
After all, savings have their limits. Of course, cutting costs is important, but there are expenses that cannot be eliminated.
Therefore, if you really want to have more financial freedom, you will need to increase your earnings.
But did you know that your job doesn't have to be your only source of income?
Of course, in most cases, formal work is a person's main or only income.
However, to increase your earnings, it is important to look for sources of extra income, such as:
• Making things to sell
• Sell used things
• Work with affiliate marketing
• Offer property rentals on AirBnB
• Sell credit card miles
• Give private lessons in your free time
• Place ads on your blog
• Create a YouTube channel
• Working with dropshipping
• Open a franchise at home
Of course, these are just a few ways to increase your income! It all depends on your interests and your time availability.
The important thing is that you have at least one extra source of income, so that you can achieve your goal. financial freedom faster!
3. Invest money
As important as saving is investing your money!
In recent years, many people have started to study more about the investment market. Even so, many people continue to leave their money sitting in savings.
Although the increase in the Selic rate has made savings a little more advantageous, it continues to be a bad option when it comes to making your money yield.
Saving is the first step. However, to maximize your earnings, you will need to invest.
Basically, investing is making your money work for you.
Of course, this doesn't happen overnight. But just by starting to invest, you can maximize your earnings in the short, medium and long term.
Among the main fixed income investments (which have previously defined return rules), we can mention Tesouro Direto, CDB, LCI/LCA, debentures, bills of exchange, among others.
In relation to variable income investments (which do not guarantee a fixed gain), we can mention shares, real estate funds (FIIs), ETFs, among others.
Finance Tips for Non-Finance People
Now that you know what the main pillars of financial education are, take the opportunity to read the tips we have prepared for you:
Understand your financial reality
Before anything else, it’s important to understand your finances.
In other words, knowing exactly how much you earn, what your fixed expenses are per month (essential and non-essential), the value of your debts (if you have any, etc.).
This way, it will be easier to know how much you can save and invest.
Track your expenses frequently
Make it a habit to track your expenses frequently.
To make this task easier, you can use a notebook, an Excel spreadsheet or finance apps.
Avoid “emotional” purchases
With so many promotions and temptations, it's really hard to keep control, isn't it?
But controlling unnecessary expenses is essential for a more balanced budget.
After all, they can generate debt and regret.
Of course, you shouldn't live in deprivation, on the contrary. One of the goals of financial education is precisely to enable you to make your dreams come true.
However, be careful not to lose control when shopping. Before purchasing a new product, think about whether you can really afford the expense and whether you really need to make the purchase.
Set goals and objectives
Set the goals and objectives you intend to achieve in the short, medium and long term.
Setting goals is important so that you can better organize your finances and control unnecessary expenses.
Conclusion
Now you know what the pillars of financial education are and some ways to organize your budget!
We hope this guide is useful and that you can plan more and more.
