How to improve my personal financial health

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How to improve my personal financial health

The comparison with health is perfectly applicable to the economic situation of anyone: a home, a company or a State. Speaking of money, a good balance of expenses and income in your day to day will make you enjoy economic health that allows you to unwind with ease and without straits. Now, how to improve your personal financial health?

Personal financial health is the way we can refer to the economic status of each one. Know in this article some recipes to strengthen your health on a day to day basis.

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Financial health

As with human health, financial health is the result of a healthy lifestyle. This, translated into purely economic aspects, is definitely about not spending more than what is entered and saving. In other words: good health in economic terms is achieved when the monthly income is sufficient to satisfy basic needs, carry with possible debt or savings commitments and, above all, guarantee a stable economic future. In this sense, for example, the extended 50-30-20 gold rule is a good option to structure income and expenses.

The 50-30-20 rule advises dividing the income into three different types of expenses: half of the income, this is 50%, must be destined to cover basic needs; 30% of the expenses must go to what is useful or attractive, but not essential, and 20% of the income must be saved, in the best of cases, in a separate account that generates an additional return. This control of the economy guarantees a good management of the income and, in addition, allows in the long run to create a cushion to cover sudden or unexpected expenses. In order to make a 50-30-20 plan, you have to pay attention to what you pay for, what you spend and what you can save.

The savings plan

Just as we take care of our health in a preventive way, the same can be done with financial health. In this case, however, we do not take pills or restorative, nor do we spend hours in the gym: we simply save. One of the most common recommendations is that the savings amount to approximately 20% of the income, in this way, it will be the tool through which you will be able to face tomorrow with ease. The money saved can be used to pay for incidentals, breakdowns or sudden expenses without significantly disrupting day to day.

Where to save? Without a doubt, there are different games for this.

  • Controlling expenses: what you enter and do not spend, you can set aside.
  • Managing extras: squeeze every extra pay or money that comes too much to you.
  • Saving systematically.

And how? Hand in hand with tools and banking entities that help you! With BBVA Bconomy, the new tool of the BBVA app, you can access features that will give you all the information about your money that you did not have before. Hand in hand with the latest BBVA in cost control features you can set as a challenge to achieve the desirable 50-30-20, analyze your consumption habits in detail, discover how to reduce unnecessary expenses and which is easier for you to achieve, financial mattress you need. Do what you always wanted.