The million dollar path can be shortened if you take some behavioral changes and behavior in your life. In my three decades of life and observing habits of friends, family, co-workers and reading various finance websites and blogs in Brazil and abroad, nowadays I can summarize and greatly reduce the science of Personal Finance that are out there.
There are books and entire sites about this but I will summarize here for you in a single post not to always beating this key because nowadays I find this a very basic subject, although I think a finance blog has an obligation to address this.
I do not use any kind of spreadsheet, notebook, mobile application and nothing to control my expenses. I already tried and I did not adapt, I’m not in the heat to close the month accounts so I do not think it necessary, for those who live in the heat can be important.
The biggest secret in personal finance is BEING YOURSELF!
If you are poor, BE POOR! Walk in poor clothes, transport the poor man, go to the poor man’s bar, buy at the poor man’s market.
The problem begins when you are poor and WANT to PRAY that you are rich for yourself or others. Then start buying shoes of R $ 300,00, watch a thousand reais, CELLULAR of 3 thousand reais, the ballad of 200 reais, STOP BEING DOUBTED!
Every time the poor man gives a rich man, he goes out of debt, saddened, and poorer still. And finally, other people will continue to know that you are poor, that HOW HOW TO HIDE. If you do not have a good education, any middle-class person will notice, so do not pretend.
In the same way if you are a lower middle class, you do not want to make it look like you are high or you are rich, so the upper-middle-class people want to make you look like YOU ARE RICH even if you are all indebted and financed with home, And travel all PARCELED and with interest, parties, leisure. Anyway, it’s an IDIOCY’s childish TOTAL wants to make it look like it is a class that you are not!
THERE IS NOT EVIL TO BE POOR, NOT SHAME, NOT HUMILIATION.
ALSO, there is no harm in being a low middle class, or high, or even rich.
But it is RIDICULOUS when a poor man pretends to be rich or the rich wants to be poor by force.
Sensible people will certainly know your income, your educational level and your assets often in 20 minutes of conversation most of the time, according to your profession, your time in the market, your way of speaking and passing The ideas, your clothes and accessories, the environment in which you are and also according to who introduced you.
So do not cheat and make no mistake, be yourself whatever it is, even this gives more confidence to everyone and avoids joking comments and jokes about you, and it can open doors and nice friends to be sincere with the world. Think about it.
How do I make my personal controls and my daily expenses?
For me, the most important thing is the CRITERIAOUS PURCHASE OF EVERYTHING, EVERYTHING, from detergent to a suit!
EVERYTHING I buy has to have a specific need, a place to be placed, a function and a task or work to be done with it. I do not buy anything to keep my mouth shut or to get my hands dirty.
Bank account: Avoid checks, this is so last century. FINISHED CHECK in your life understood? If you do not understand, go back to the previous sentence. Do not pay bank account fees. Open a digital account at Banco do Brasil or Itaú. You will be well served to do almost everything on the internet.
To go to the agency to chat and to have coffee with the manager is a retarded thing. All you need to know from the bank is on the internet on the bank’s website. A rate of 70 reais a month will cost you almost 800 reais a year and 8 thousand reais in 10 years, every 10 years, 24 thousand reais in 30 years. Fuck that huh?
Credit card: Who uses many credit cards paid many fees and are very lost, the lack is usual and pay multiple bills are boring and you can forget, pay interest and penalties. If you pay LESS than the TOTAL amount of the invoice, cancel all of your credit cards, this is not you, you are incompetent enough to have credit in the market place, wallet with money in the wallet and pay all cash, when you have not More money do not buy anything else and get hungry until you get the next salary, one day you learn to deal with money. Renner store cards, Riachuelo, Marisa, I do not know … I will not comment, break everyone and cancel them.
If in case you pay the full amount every time, just ONE, no annuity, or freshness of miles, black, platinum, or whatever. Miles are no longer good for nothing and you can buy them at will from various websites and people for 300 reais 10 thousand miles on average.
It has the Nubank card that is for free and also the Petrobrás card for free. There is also one from Ipiranga along with Itaú which I did because it is international, and the annuity is less than 60 reais and it joins km in the km program of advantages. And I did not want to run the risk of just having a credit card.
Car and transport: Buying new car is a thing of the middle class. If you are not a taxi driver or a fleet, there is NO LOGICAL EXPLANATION to buy a new car, paying a tax tip, this is just vanity, just vanity, you have no other argument. A 30,000 km car being a good company like Honda or Toyota is a NEW car.
Changing cars every 3-5 years “because it will start to give problems” is also a middle-class thing, this phrase in quotes is the favorite of the car salesman. The car that “starts to give problems” is car manufactured in the 80’s behind Chevette, Fusca, Brasília, Corcel … these gave problem, those of today not just care and do normal maintenance that can get 25- 30 years or more, when the engine hits go to a grind and have the engine rebuilt, it will be new again to run another 900,000 km. I know I deny that Corolla has 700,000 km in and is walking very well. The cost to maintain a car even if popular is about R $ 10,000.00 per year, R $ 100,000.00 every 10 years and R $ 300,000.00 in thirty years.
I did a post analyzing the cost of a motorized couch and categorically stated that it can cost your Financial Freedom, and it’s nothing more than the truth. If you are in debt and paying a lot of car financed interest and are tight, sell the car and ride a bike or bus. There is no such thing as buying car financed. It’s simple if you do not have the money to buy a car in sight, it’s because it’s not for you.
If you live in a large city try renting a place close to work (if the rent is expensive from the AP or home get friends from work or university to share the rent) and go on foot or bike, or even subway. Those who live in SP or RJ capital if they turn by subway and uber, nor need to have the car.
The car is a monster that costs dearly. Ballad, show, and bar if you go by taxi, supermarket always has a taxi at the door to help bring the shopping, stop crying. You will not get rich and independent if a car sucks your life.
If you live in a medium city with mild temperatures or small in the south or southeast and you can go for a quiet bike, GO BIKE! Going to work for BIKE will do you very well, will increase your quality of life, health, decrease your spending and leave you in shape.
Clothing and accessories: Do not use watch or necklace or ring, nothing. I do not buy designer clothes (the ones I have were present). I usually buy clothes abroad, and when I buy they are cheap, like 5 shirts for $ 20, here in Brazil I do not buy clothes. I’ve spent my whole life wearing clothes from my older brothers, from C & A and Riachuelo, you can too.
Being buying clothes every month, or giving a lot of clothes is expensive and I do not suggest. Buy clothing only when it is on a very special occasion yours or someone else, the rest wear your clothes. I have repeated clothes many times over Christmas and New Year and I am alive. You do not have to wear ugly, old or torn clothes, that’s a simple begging, but you do not even have to give $ 100 in a shirt, that’s stupid.
Health plan: I would advise doing so! Just in case you need surgery and UTI. In the SUS you can wait months for surgery and if it gives a serious problem almost always does not have a UTI vacancy. I work in SUS and I always see people DYING for lack of something or other in the hospital. No need to pay TOP apartment flat. Hire a national nursing plan with co-participation, it does not have to be a first-rate plan.
Beware of VERY popular health plans that the monthly fee is VERY LOW. It does not exist, health is good and it costs dear. A health plan that costs 80 reais a month is a real fraud.
Take care of your health, reduce consumption of salt, sugar, alcohol, industrialized food and industrialized drinks like juices, teas, soft drinks. This is all rubbish, straight into the depths of your body and soul.
Avoid white and farinaceous bread in general, plus pasta, pizza and rice, and simple carbohydrates. Avoid sweet food, the sweeter the worse. Lunch and dinner meat, chicken, more salads and the best drink to accompany is water. Keep the weight down, the BMI below 25 which will already prevent many diseases. Try to do physical activity FOR FREE.
Look for CALISTENIA on Google and youtube and learn. DO NOT NEED TO PAY GYM. GYM has nothing to do with health. You can get strong and beautiful, yes, but that is an aesthetic thing and not health itself. Other than that, I’m going to have to buy supplements and keep and spend money and waste a lot of hours training while I could be doing something more productive, but there are a lot of people I like, so everyone in your family, I’d rather do a sport than going to the gym.
Anyway, do some regular physical activity, which can be the gym. The bad is that it pays. If the monthly fee is 100 reais this will cost you $ 1200 per year, 12,000 in 10 years, 120,000 in 30 years, just for the gym.
Home utilities: Cancel Cable. TV is rubbish. Pay only a good internet that satisfies you, if you also give a Netflix to complement and you’re done. Try to sleep with the window open and/or fan, sleeping with air conditioning is very expensive and it is very bad for your health because the air is dry (without humidity), the noise interferes with the quality of your sleep and the filter gathers a lot of dust, Viruses, and bacteria.
Mixer, automatic juicer I do not know what there, I do not know what else, automatic banana peeler, I have Dreamed of these things. A kitchen with refrigerator, stove, microwave and the electric stove is already EXCELLENT. The rest is freshness.
Besides, I only have one coffee machine Dolce Gusto, which was present so I use it sparingly, nor is it every day I drink coffee in it (because not every day I come home). The coffees cost R $ 26,00 a box with 16 units.
I live in a very hot city but I only sleep with a fan (from the good, from the pedestal, it cost 250 reais, the energy consumption is minimal and it is quiet.) Make food at home, take some lunch for work. In addition to being dangerous, it is not healthy or hygienic. Foods sold by delivery and in any self-service are, in general, VERY MORE SALTY AND GREASY to be hot, is not it?
Think like the owner of the restaurant, the client has to have a good experience there, so you will not serve food without salt and fat (which is what gives the taste indeed). Learn to buy groceries or wholesale, hygienic products that weigh a lot you save a lot on wholesale (I buy dry deodorant for 7 reais, 5kg soap powder and 2l concentrated softener, this lasts for eternity). Buying these things at pharmacies or retail supermarkets is a real rape. Use the Retail supermarket for fruits, vegetables, eggs and just.
Fixed phone I have a Vivo, R $ 25 monthly, but it is because of my work, I AM THANK YOU to have a landline, but if you are not, do not have it, it is annoying, it is annoying, it is an invasion of your Privacy and is a means of watching over you, landline takes away your freedom.
Water expenses: take a quick shower, not have to be singing in the shower like an idiot, clean your teeth with a closed sink, add all the clothes to wash once, wash the dishes with the tap at very low flow. Hot bath: I NEVER take home. Only when I’m not home. Even early in the morning the super cold water I drink cold, I got used to it, it’s good to wake up for once.
Cleaner: It’s expensive, it is becoming more expensive and RARE. Finding good and working well is very difficult. I spent my whole life without one. I can do everything at home, wash the bathroom, make beans, wash the machine. Nowadays I have one (but she cooks lunch and dinner then compensates for me because I have very little time at home and I have to dedicate myself to sleeping, studying, resting and being silly than doing this.This is one of my few luxuries, A clean wardrobe, a clean washbasin, a well-made food. With it, I save a little by not having to eat on the street or delivery at work, and also because I have two dogs at home so it gets very dirty.
But look at your situation, who stays at home every night I do not think I have to have. You can work a little bit each day so you do not put together a lot to do and do a nice clean-up on a Saturday a month. I thought it was therapeutic to do the dishes, it gives you the strength to win, stop complaining about having to do your homework, this is the stupid thing, every home gives work and even in fucking and developed countries, the staff has a maid. This maid thing is the inheritance of the colonial period. I do not like and never want to take away your privacy and freedom and you are subjected to labor lawsuits, robberies, kidnappings and that she mistreats your small children or animals. Everything in life has RISK.
If your life is VERY hectic, agitated and laborious, see if it pays to pay one, at least once a week to give a general in everything and to wash the clothes. Another danger is her seeing your documents, jewels, getting the key to your ap (when I change the day laborer I ALSO I change the house lock, but that’s me, you do not have to be like that.
The safe box: It is controversial. A lot of people say that you are MORE OBSERVED if you have a safe box because the day laborer or the brother-in-law’s friend will tell you that the rogues come to assault you in your house and they arrive soon asking for the safe. And if they arrive from nowhere without anyone saying yes they will look for the safe and if you have a hostage you will have to go there and open it. In addition to saving money in cash, at home, even if it is the dollar (much) is a retarded thing, leave everything in the bank and hide the bank card.
If you are going to have a safe place in a more hidden place, do a little remodeling in your house or ap (the bricklayer will know right?) / There are people who ask the joiner to do inside the wardrobe or the room’s rack (the joiner goes Hide inside a wall, in a false bottom in the wardrobe, in a hole under the bed, I do not know, just do not leave it hidden or hidden. I do not have Rolex jewelry or anything expensive. My important things, like passport, dollar, college diplomas and other documents are all in a folder in a common drawer.
Insurance: If you have a small child and zero equity worth having life insurance. If you have a large estate, you do not have to, if you die people will inherit what you have and that’s it. Try to be more alive than dead. The guy already with money and equity I find it a waste to pay life insurance, outside the various cases of children and wives who have the individual killed to WIN THE INSURANCE. I know you trust yours (and do you think these dead people did not trust you either?).
If you have good and new or semi-new car it is worth it, especially for the case of theft or total loss. The more you fuck your car, the more you screw up to pay for insurance. An Audi comes up to cost $ 8 a year insurance. Fucking cars like Audi, BMW, Mercedez, Land Rover have VERY expensive insurance.
Residential usually ask if your condo already has (usually have). If you live in a house on the street consider the possibilities, they are usually very cheap, but I do not think they are something that should be paid for.
That’s basically it. There is not much secret. You do not have to invent the wheel here. Just do the right thing. Just do it and be as simple as possible. Improving your life largely depends on your behavior and your attitude toward your choices. Do not deceive and make no mistake. You are who you are. You do not owe anything to anyone, let alone spend more to appear to be a person you are not. Always focus on you and your personal development, your health, your studies, your rest and your work.
My monthly personal expenses are like this in the last months:
Several shopping = 22.43% (credit card bill excluding gasoline and supermarket)
company expenses = 22.43%
Supermarket = 11.23%
Family (monthly donation for parents) = 11.23%
Car = 10.4 % (2007, settled) [Note that CAR iS A BITCH SPENDING! Even settled]
Diarista = 5.98% (3x a week, making food)
Plane tickets = 3.74% (the downside of living away from their city, family and friends)
Health care = 3.4% (Bradesco median ward, with co-participation)
Energy and condominium (housing) [Ap settled] = 2.84% each
Mobile, internet and Netflix = 2%
financial expenses = 0.75% (brokerage costs, bank cards) [In reduction process]
Donation (Doctors without Borders) = 1%
donation to the Party NEW = 0.25%
The good news is that from March next year I will get rid of a big installment that I have in the company so there will be more money to contribute and also lower my monthly costs with the company.
PS: I will insert in my blog now from this post a banner of Doctors Without Borders to help spread, I will not receive money so it is only to help the cause. Sorry for the visual pollution.
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