Personal finance refers to the financial management that a person or family needs to be able to Make a budget, save and spend money in a certain time. However, a number of factors are taken into account, such as income, expenses, assets, liabilities and possible economic risks that may affect the economy.

“In order to maintain the balance of personal finances, it is necessary to follow a whole process that includes planning, self-evaluation, setting goals, carrying out certain activities, monitoring, evaluating and measuring our movements”, comments the dean and professor of finance at the Universidad del Río, Francisco Parodi.

At the beginning of the new year, It’s the perfect time to think about your financial goals and put together an effective plan to improve your personal finances.

Prepare a detailed budget:

Before making any financial decision, it is essential to know your income and expenses. Create a detailed budget that includes all your sources of income and monthly expenses.

What can I do if they don’t pay me my thirteenth salary in Ecuador?

Set realistic financial goals:

Define short-term, medium-term and long-term financial goals. These goals must be specific, measurable and achievable. Setting goals will help you stay focused and motivated to work toward your financial goals.

Save and invest wisely:

Establish a systematic savings plan and look for investment opportunities that align with your financial goals. Diversifying your investments will reduce risk and increase your chances of positive returns.

Eliminate high-interest debt:

Prioritize paying off high interest debts. Reducing these debts will allow you to save money in the long run and improve your financial health.

Take advantage of financial technologies:

Use apps and platforms fintech in order to optimize the management of your finances. From applications from budgets to automated financial advisors.