Healthy finances: 5 tips

1. Have an investor mind

Dieck mentioned that one must be aware of the resources that each person has, such as money and time.

"The investor mind is aware of what it has and the decisions it makes every day for its benefit," said the author.

The consultant highlighted the importance of recognizing the role of finances in daily life, as they protect well-being and provide tools to meet the life goals of people and businesses.

He also said that a financial mind thinks and projects in the short, medium and long term.

2. Know how we spend money

For the author, personal goals define and begin financial life, since each of them requires monetary and time resources.

In money management, he stressed, an important factor is knowing where our money comes from and what we spend it on.

Another tool that you mentioned and that you consider to be the most important to achieve any objective is to implement a budget.

“A budget, like a sales projection in a company, helps us give direction to our money,” Dieck said.

3. Have savings and invest in the short, medium and long term

The personal protection of finances is another pillar to achieve financial success and Moris Dieck explained that it is made up of 3 axes:

Always have emergency savings made up of 3 months of fixed or recurring expenses

Invest 80% of our income in short and medium term goals

and 20% invest in long-term goals

Other tips that he shared were living below economic possibilities or in conservative scenarios, in addition to investing in medical, auto, and life insurance, which is like having an emergency fund.

“Prevision and financial protection should accompany us for the rest of our lives”, reiterated the financial consultant.

4. Know where to invest your money

For the personal finance specialist, investing is the starting point to increase resources, beyond money.

“By investing we increase our wealth and diversify our sources of income,” explained the speaker, who commented that there is an investment instrument for each person.

They range from investing in real estate, which are the most conservative options, to investing in the stock market.

For Dieck, there are also 7 other invisible assets that each person has and can invest to capitalize, and they are:

Knowledge

Relations

Attitude

Health

Spirit

Weather

 5. Live with compound interest

Compound interest is defined as investing, earning and reinvesting the resources that are generated.

“The results that are generated are exponential; something that the human being is not accustomed to understand”, admitted Dieck.

For the speaker, the most important key when investing is just to do it through compound interest, which is to invest what I earned with my first investment plus the basis of the investment and so on.

The issue, he explained, is that not everyone wants to reinvest all their money and profits and pointed out:

 "Behind financial success there is discipline and perseverance, there are no magic recipes."