Six ways to make the budget go further

Many face challenges when the budget go further, as the lack of a clear strategy and poorly targeted consumption habits can lead to financial difficulties. 

Therefore, tHaving good financial planning is essential for anyone who wants to maintain healthy personal finances and achieve long-term goals. 

In this article, we present six strategies to enhance your budget, helping to create a balance between income and expenses. 

With these tips, you can maintain effective control of your finances and ensure that your money generates sustainable income.

Analyze and reorganize your fixed expenses

To make your budget yield more, the first step is to analyze in detail the fixed expenses, which represent the basis of your monthly budget.

Expense mapping 

Gather all your fixed bills, such as rent, internet, electricity and installments, and use a spreadsheet or financial control applications to record these costs. 

This is because, according to a study by Bankrate (2023), 62% of people who monitor their expenses manage to save significantly within six months.

Therefore, with a clear visualization of expenses, it is easier to identify where to cut expenses.

Renegotiate contracts and services 

An effective way to make your budget yield more is negotiating contracts with service providers, such as internet, telephone and insurance. 

This is because many companies offer better conditions to old customers, as long as there is a formal request. 

So, reviewing these expenses and negotiating contracts can represent savings of up to 20% per year, according to research by Consumer Reports (2023).

Replace expenses with more economical alternatives 

Evaluate whether there are more economical alternatives for expenses such as gym memberships, health insurance or even streaming services. 

This is because opting for cheaper options can have a significant impact on your budget.

So, switching supermarket brands or looking for discounts can result in considerable monthly savings, allowing your budget income more.

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Set clear and realistic financial goals

Setting financial goals is essential to maintain focus and motivation, especially when the objective is to make your budget yield more.

Division into short, medium and long term goals 

Set short, medium and long-term goals, such as paying off debt, creating an emergency fund or investing in a retirement fund. 

This is because goals help direct efforts and avoid impulsive spending. 

According to the National Endowment for Financial Education (2023), 69% of people who set financial goals are more likely to improve their finances.

Use the SMART method to set your goals 

The SMART method (Specific, Measurable, Achievable, Relevant and Timely) can be a useful tool for setting financial goals. 

For example, instead of saying “I want to save”, say “I want to save R$5,000 in one year for an emergency fund”, after all, this targeted practice helps you maintain focus and discipline.

Periodic review of goals 

Reviewing goals periodically is essential to ensure they are still relevant and to adjust the plan as financial conditions change. 

This way, you can adapt your strategies and continue to make your budget yield more.

Adopt the 50/30/20 method to organize your budget

The 50/30/20 method is a simple and effective way to allocate your resources, allowing you to make your budget yield more in a structured way.

Distribution of expenses 

In this method, 50% of income is allocated to essential expenses (housing, food, transportation), 30% to discretionary expenses (leisure, hobbies, travel) and 20% to savings or paying off debts. 

So, this balance makes it easier to organize your finances and prevent expenses from getting out of control.

Flexibility and adaptation of the method 

Although the method is simple, it can be adjusted according to your needs.

If your essential expenses are higher, adapt the proportion to ensure that savings are not neglected, as this helps you stay focused on the goal of making your budget yield more.

Tools to apply the method 

There are several tools, such as financial control applications, that help you apply the 50/30/20 method in a practical way. 

These resources facilitate organization and allow you to monitor the performance of financial goals, ensuring a clear view of the budget.

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Invest in financial education

So that your budget income is more, it is essential to invest in financial education and learn to better manage available resources.

Consumption of specialized content 

The internet offers countless free courses, blogs, e-books and videos that can help improve your financial knowledge. 

The study of FINRA Foundation (2023) showed that 43% of people who seek financial education significantly improve their personal finances.

Participation in financial communities 

Participating in online groups and communities dedicated to financial planning allows you to exchange experiences and learn from other people’s experiences. 

In addition to practical tips, these groups also offer motivation to achieve financial goals.

Financial mentoring 

In some cases, seeking guidance from a financial advisor can be a valuable investment, after all, this professional can help you create a personalized strategy so that your budget income more, considering your financial reality and specific objectives.

Create an emergency fund for unforeseen events

An emergency fund is essential to deal with unforeseen events without compromising your budget. 

This practice helps you make your budget yield more, avoiding debt in emergency situations.

How much to keep in reserve? 

Experts recommend that your emergency fund be sufficient to cover three to six months of essential expenses. 

This guarantees financial support in cases of unemployment, health problems or other unexpected emergencies. 

According to Feels like it (2023), only 25% of Brazilians have an adequate emergency reserve, showing the need for awareness.

Where to invest the reserve? 

The emergency reserve must be applied to low-risk financial products with immediate liquidity, such as savings accounts or CDBs with daily liquidity. 

This way, the money will be available whenever needed, without losing the accumulated income.

Reinforcement and replenishment of the reserve 

If you need to use part of the reserve, it is important to plan to replace the amounts used.

Therefore, set a goal to replace the amount as quickly as possible, avoiding compromising your financial security.

Cut superfluous expenses and reevaluate priorities

Carrying out a critical analysis of consumption habits is one of the quickest ways to do the right thing. budget yield more. 

This is because identifying unnecessary expenses and replacing them with more economical alternatives can free up resources for investments and savings.

Identification of superfluous expenses 

List all expenses and evaluate which ones are truly essential, such as subscription services that are not used, for example, and can be canceled, freeing up resources for other priorities.

The study of IBOPE (2023) indicated that, on average, Brazilians spend 15% of their income on non-essential expenses.

Prioritize what really matters 

Review your priorities and adjust your budget according to your values ​​and goals, which may mean cutting spending on dining out to focus on trips or courses that will bring a more significant emotional and financial return.

Use the 30-day challenge method 

An interesting strategy is the 30-day challenge: when you identify a desire to purchase, wait 30 days before making the purchase. 

This time allows you to assess whether the expense is really necessary and avoids impulsive purchases, helping to make the budget yield more.

Comparison of investment alternatives for emergency reserves

Below, we present a table with some of the main options for investing your emergency fund:

Investment Option	Liquidity	Risk	Approximate Yield (2023)	Suitable for
Savings	High	Low	0.5% per month	Conservatives
CDB Daily Liquidity	High	Low to Medium	0.8% to 1.1% per month	Moderates
Selic Treasury	High	Low	0.9% per month	Conservatives
Fixed Income Funds	Average	Average	0.7% to 1.2% per month	Moderates

The table makes it easier to choose the best investment for your emergency reserve, considering liquidity, risk and yield.

Finally, sBy following these six strategies, you can make your budget yield more and achieve long-term financial stability. 

After all, controlling expenses, setting goals and seeking financial education are essential steps to

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