Maintaining good financial planning is not always an easy task, and if there is not frequent monitoring of financial control , it is inevitable that any process will destabilize and turn a real mess very quickly.
Losing financial control ..
Financial control has become an essential part of any company’s finances. Therefore, it is very important to understand the meaning of financial control, its objectives and benefits, and the steps that must be taken to have it implemented correctly. Any financial performance process becomes meaningless if a strategy to control it is not defined and implemented based on objectives consistent with the current state of the company and its upcoming projects.
Accounts are delayed, debts accumulate, interest rates increase, and everything ends with you ever more distant from being able to hold the reins again and perform financially. Watch for signs of loss of financial control and avoid the problem even before it happens.
1. Get to the end of the month in red
Most people are accustomed to having less money on the arrival of the end of the month, and to some extent this is normal, since most Brazilians receive their payment on the fifth business day, remove their accounts and manage day to day with the remainder until the next salary.
However, when you live tight at the end of the month, it’s good to open your eyes: it can be a sign of lack of financial control ! It is necessary to make a schedule so that the money that enters enters last the whole month. When this does not happen, it is convenient to turn on the alert flash and find out what is preventing it from happening.
Usually the problem is in superfluous expenses from day to day , which are not accounted for and therefore you do not realize. Spending credit cards everywhere without giving an account of how much the total of the invoice will come, exchanging high-value bills and ending up spending the money in “cheap” nonsense, and the money goes away without you noticing.
When this happens, it’s time to organize a spending spreadsheet and control yourself so you do not spend more than you will receive. Write down your expenses!
2. You have no saved background
Not having money saved is also a classic sign of losing financial control . It is essential to have a reserve for any emergency, and the lack of it can put you in trouble, such as causing the need to use a loan and paying interest so if you need urgent money to cover some unforeseen.
After you make a financial spreadsheet and start adapting to keep a financial control so you do not spend more than you earn, you also start gradually to pull the brake a bit more so money on and you can save. It does not have to be too much at first, start slowly and increase gradually as you can.
This reserve is important to cover unexpected expenses, casualties and even leisure, but you must use responsibly to not get back to zero!
3. Living hanging with credit cards
Using a credit card can be a convenience or a trap: it depends on the financial control you have! The bill can be a real threat to your economy, because using the card without keeping any type of organization makes it easy to spend more than you earn.
Gradually this becomes a snowball because the money you have is not enough to pay the full amount of the invoice, then you pay the minimum amount or any amount below the total. This generates interest for the next invoice.
Since there is no living money on hand because of this debt, you tend to keep using the card more and more, and the problem never stops growing. If you live in situations like this, you are probably starting to lose financial control and need to redouble your attention.
Use credit cards if necessary, for Internet purchases or installments that are necessary, not forgetting to count the amount of the installments to your worksheet so as not to get involved, or you can end up with the negative name and a giant debt.
Watch for the signs and solve the problem before it gets worse. Maintaining a financial control provides a quieter life with no grips and is not difficult!