1. Know how your money behaves and moves

The first task you must do to start building your financial plan is to be clear about your income and expenses. Knowing how much you earn and how much you have to allocate to cover your obligations will allow you to have a clear financial picture, to know which are the crucial moments for your pocket and to understand how much you can allocate for savings or investment.

2. Establish realistic and achievable financial goals. One of the most frequent drawbacks when making a financial plan is to set unrealistic goals that are beyond our reach. In order to achieve successful savings, it is necessary to be sensible.

3. Always have a savings for any unforeseen expense. Even if we have our finances under control, sometimes situations may arise that we cannot control: an illness, an injury, a layoff, among others, that can happen to anyone. For this reason, it is important that in your financial plan you allocate an amount for unforeseen expenses. This way, if an unfortunate event happens to you, you will be able to count on emergency money that will help you face those difficult moments with greater peace of mind.

4. Make a detailed budget that adapts to your strategy.

Translated by: A.M