just a couple of weeks ago December and with it, the year 2021. That month is, without a doubt, one of the months in which people spend the most, since they must buy things for Christmas and New Year’s dinner, they also spend on gifts and details and even try to pay off the debts they have.
Now, in January, a difficult stage arrives in terms of the financial issue, because all the expenses that were incurred during the past month, and even at the beginning of this month, begin to charge us. This stage is known as January cost.
Moris Dieck is a financial visionary and business strategy consultant. According to your profile Linkedin, is a passionate about finance and economics and a firm believer that education and financial inclusion are fundamental pillars for the development and growth of any society.
Currently, he is dedicated to teaching courses, is a lecturer and is a content creator for various media on topics related to personal finance, investment, economics and business. One of the platforms for which he creates content is for YouTube, where you have a channel. There he too influence He explained that it is known as the January cost because financially, in theory, the year of rise begins, because it is like a burden with different factors that accumulate to make our financial life complicated, especially when the year begins.
In January, you have to pay certain taxes, for example, the predial, the endorsement or license plates of the car, among others. To this is added the inflation, because there is regularly an adjustment in prices in practically everything: food, products, services, etc., and companies have to protect themselves against the increase that occurs year after year in inflation and prices rise. To this are added the debts from Christmas or year-end expenses.
Dieck shares four steps to make January’s hill go lighter and not feel so heavy.
He mentions that you have to take advantage of the discounts given by the government for prompt payment in taxesWell, it is normally these days when the government, if you pay property taxes or car taxes on time, gives you a discount on payments.
The second piece of advice he gives is eliminate debts that are “creeping”. “This is where it starts to cost us all those months without interest around November and December, the Christmas dinner, if we made a trip, and the gifts, this is where it starts to cost us, so the last What we really want is to be carrying debts from last year in a year where everything is supposed to be better”, mentions the influencer.
He says his recommendation is that people concentrate on eliminating debts, and that you start from the smallest, which is the one that will be able to be eliminated as quickly as possible if you start paying extra money, and thus, eliminate one by one, until, finally, only the smallest remains. big, to focus on her. This will help you in psychological part, to concentrate only on one debt, and you will save many charges and commissions that having other debts does.
Dieck says that if you’ve been dragging your feet since December or November, the worst thing you can do is keep “getting your foot” in our money. This is why you have to communicate to the people close to you, that in these times you are with him. “tight belt” so you will not spend more. “Remember, right now the most important thing you have to do is generate a little savings, so that you can be using that savings to pay off your debts.”
For this reason, it recommends Be very aware of ant expenses from now on.
The fourth and last piece of advice is to project finances for the entire year ahead. “Make your projection, your budget of income and expenses, this will help you make decisions given the circumstances that arise in your life.”
Explain that the way to make the budget is: in income, it is divided into fixed income and variable income. The fixed ones are those that do not have to vary, such as salary or if you have any property that is rented. Variable incomes are those that can vary given the circumstances and activities you do, such as commissions paid to you at work or if you have a business.
“Ask yourself: Are my sources of income enough to give me the lifestyle I have or would like? What modifications do I have to make?” he says.
Then, you have to go to the expenses part, which has to be divided into household expenses, such as food, rent, services, and everything you need to maintain your home. The second are the family expenses, such as tuition, weekends, expenses of your children, partner, etc.
Next are the transportation expenses, such as the public transport service, the car, gasoline, maintenance, etc. The fourth is debts that you are dragging and that you are going to allocate an amount to them every month. Then the personal expenses, such as clothing, personal hygiene items, etc.
Next up are the spending on leisure and entertainment. He recommends that these first few months you should try to entertain yourself in which you should not spend much.
When you have the sum of the income, you must subtract all the expenses that were capitulated, and what remains is the personal utility. He recommends projecting this throughout the year so that there is more clarity, since The best way to improve our finances is by measuring them.