Financial planning in the life of a traveler
Financial planning is crucial and a central bank survey shows that more than 60% of people do not do any financial planning and that is why 70% of Brazilians are in debt.
Imagine how this can disrupt a traveler’s life?
Planning is essential for everyone who wants to have a more peaceful life and achieve their goals.
In the case of a traveler, it is even more important, because in addition to traveling being a non-essential item, as it can be cut from your budget, it can also bring additional debt and worry into your life.
So that you can travel more and better, we will discuss what financial planning is, how to do it and what it can help in your life as a traveler.
First, we need to understand that planning is an important part of financial education.
According to ENEF (National Financial Education Strategies) it is:
“It is the process in which individuals improve their understanding of money and products with information, training and guidance.”
Financial education is a set of skills that will help people in their decision-making to manage and save their financial resources.
Aiming to increase your assets and ensure a safe and peaceful current and future life.
The main objective is to multiply your earnings to accumulate wealth.
What is financial planning?
Financial planning is the organization of your finances with the aim of knowing your current situation and creating strategies to achieve your financial security.
Planning uses tools and best market practices to achieve goals and realize dreams in the short, medium and long term.
In addition to the tools, a change of habit is necessary and for this, discipline becomes an essential factor for success, as there is no point in having a great plan if you abandon it in 1 month.
Another key characteristic is that it is long-term. Remember that the goal is to provide resources for your current and future needs.
It also aims to create protection to face unexpected events.
What are the steps to make great financial planning?
1 – Survey of your current financial situation.
I know it’s a lot of work and painful, but it’s extremely important and crucial.
To help, use this spreadsheet made by,……..
Don’t forget any detail, even the coffee. Everything must be included, because only then will you be able to have an accurate view of the situation of your personal finances.
2 – Understanding your debts.
With the knowledge of your personal finances, it is necessary to look into the debt section and understand the following:
A – How did you get into this situation?
What habits led you to acquire these debts?
What pressures led you to this situation?
B – What are the characteristics of debts?
What kind of interest for each one?
Who is it for?
Inform the term of each debt.
3 – Study your consumption habits.
When and where do you make your purchases?
Children’s schools?
Leisure habits?
This reflection is even more crucial when purchasing higher-value products/services.
4 – What are your dreams and goals.
What are your wealth goals?
Where and when do you want to travel?
What do you think your ideal retirement would be like?
5 – Where to make your investments?
With the knowledge of your resources and needs, you can create the investment plan that can provide you with resources in the future to meet your needs.
It is necessary to know the economy, characteristics of each investment, such as direct treasury, savings, shares on the stock exchange, etc.
How financial planning affects your trip.
Planning directly affects your ability to carry out your trips, as it is an extra expense.
If not planned, it can compromise your ability to meet your needs, as it can increase your debts.
Good planning of your trips can also help with your personal finances.
See Cheap air tickets: The definitive guide and 6 tips to make your vacation fit your budget for some strategies to save on your trip and help keep your household budget in the black.
What to do after planning.
Well, now that you have a very clear vision of your current financial situation, all your needs, dreams and goals, it’s time to start a new journey.
You will need a lot of discipline and commitment to achieve your goals, but I can guarantee that if you do this you will have a full and above all long and safe traveling life.
To continue in Financial education.
If you want to know about the traveler’s lifestyle or sustainability.
