We have to start by defining some concepts that we are going to use, we can start with finances that can be defined as managing money in an intelligent way and the final purpose of finances is correct decision-making. We must also know the terminology of discipline; which expresses that it is the set of norms or rules that constantly complying with them lead to a certain type of result.
In this brief context, we say that there is a recurring lack of discipline in finance. But, how do we know if we are using our money correctly? This is where a possible answer to this question begins.
Although, it is commonly known that expenses should not exceed income, now, what are income and expenses? Well, in a simple way we can say that income is any amount of money that enters our money flow constantly, whether it is biweekly, weekly, fourteen weeks, etc. Now, expenses are all those money outflows that occur during a period of time, for example, the payment of water, the payment of electricity, the payment of cable, the rent of the house, etc. They are clear examples of each type.
Well with this in mind, we can say that the money is used correctly when at the end of the month you manage to cover all the necessary payments for those goods and services that you use daily. Reaching out to pay does not mean that you arrive scratching or barely make it to the next fortnight or that you do not borrow to be able to complete yourself in expenses despite the fact that the next day you receive your salary. Goods and services are those tangible or intangible things of economic value that benefit the owner, for example owning a car.
Making the correct use of money is knowing how to make good decisions based on our financial capacity.
It is necessary to know what types of expenses we have; which must be fixed and variable. It is said that they are fixed because they are expenses (or money outflows) of fixed and constant amounts, for example the payment of housing, the payment of water, the payment of food, among others. And variable expenses are those amounts of money that are irregular, for example transportation to work or school, unforeseen events, meals away from home, etc. Adding up all the expenses (both fixed and variable) provides us with the amount of money that we spend.
Expenses are offset by income.
DEVELOPING
The lack of discipline in finance is manifested in a very common way when buying more than we can pay, the over-indebtedness of credit cards, the lack of a culture of personal finance, among others.
Something as simple as knowing how much we spend and how much money goes into our pocket could help to have a better way of managing money.
There are several tools for the correct use and management of money, the most used are budgeting and financial planning, but what is budget and financial planning? The budget is said to be the set of expenses and income expected for a certain period of time. And financial planning is the set of different methods and tools to establish economic and financial goals and forecasts.
By making proper use of both tools, a beginning can be achieved for a correct money management and being able to achieve proposed goals.
Discipline is finance is a situation that surpasses an individual, it is something that should be encouraged from childhood, from parental support to as part of basic education. Although the information to access a financial discipline is present in different ways, it is poorly disseminated. Rooted to this, the habits and customs of each individual, as well as the will, enter the playing field. Some myths that impede financial discipline also come into play.
"Within personal finances, there are beliefs that due to lack of information can affect your economic well-being" (CONDUSEF). As the Condusef points out, they are beliefs, however some of them are not exactly real but they are close to it. There is no better method than to keep a written report of all the expenses that are up to date, to later gather them in a monthly format (as a suggestion, adapt to the form that best suits you, be it weekly, etc.) and compare it with income.
CONCLUSION
The money will not arrive alone, by magic or by winning the lottery, the money reaches our pockets through work and daily effort, however, not everyone has the capacity, the will, or the habits to be able to keep their money over time, and instead of being devalued, increase in value.
In a society in constant motion, in the development of new business and investment ideas, at a time when there is a technology that sooner or later will surpass reality, and with declining purchasing power, it is of the utmost importance that in the New generations will instill the habits of saving, personal finances, business opportunities and responsible consumption because if we aspire to stop being a developing country and be a first world country, it is necessary to cultivate in future minds, the path of correct use of money but, before achieving this, it is necessary and urgent to start with us first.
"It is impossible for a human being to achieve what he has never wanted, but at the same time it is impossible for what is desired to be achieved without effort." (Eduarte, 2010). Without will and effort it is difficult to achieve any proposed goal, it is hard to excel, but above all it is even more difficult and hard to keep money over time without it losing its purchasing power.
BIBLIOGRAPHY
Arturo Morales Castro, BS (2005). http://fcasua.contad.unam.mx/. Retrieved May 19, 2016, from http://fcasua.contad.unam.mx/:
CONDUSEF. (sf). www.condusef.gob.mx. Retrieved on May 19, 2016, from www.condusef.gob.mx: http://www.condusef.gob.mx/Revista/index.php/usuario-inteligente/educacion-financiera/472-mitos-que-afectan -your-finances
Eduarte, W. (October 25, 2010). www.herramienatasdesuperacion.com. Retrieved on May 19, 2016, from www.herramienatasdesuperacion.com:
