Name: PocketBook4you
Author: PocketBook4You

.4ad98be0-6ae4-49a2-89e2-8bbcd78ecc38.mp3

Do you know exactly how much you spend? Do you know what you need to buy? Is your financial life balanced? The author Gustavo Cerbasi will help you to answer these questions in the book “Como Organizar Sua Vida Financeira”!

If you don't know how to do it, calm down! Here you will find the best techniques and strategies for organizing your financial life in a didactic and simple manner.

Got interested in achieving a prosperous future for you and your family? Continue this reading with us!

The book “Como Organizar Sua Vida Financeira”

The book “Como Organizar Sua Vida Financeira”, in free translation from Portuguese “How to Organize Your Financial Life”, uses an objective, didactic and interactive approach to the reader to instruct them on how to develop personal financial intelligence.

In the end, the author Gustavo Cerbasi, discusses the world of personal finance, teaching how to assemble his own planning with appropriate tactics and models.

The work is part of a collection published by Expo Money and contains 160 pages divided into 10 chapters.

Gustavo Cerbasi is an administrator, writer, financial advisor, speaker and teacher. Finance Specialist from New York University and author of 16 books, highlighting the Best Seller “Smart Couples Get Rich Together”. 

He is considered a reference in financial health and education, giving lectures to anyone who wants to know how to invest in the stock market, negotiate debts or organize the financial life.

He was elected by Época Magazine as one of the most influential personalities in Brazil.

Why should I read “Como Organizar Sua Vida Financeira”?

Whether you want to learn the basics of personal financial planning or just how to organize your finances, this book is for you!

It’s recommended for everyone who wants to get the right tips in order to make more money-conscious decisions, avoiding common mistakes that disturb financial development.

So if you want to balance your finances and plan a more prosperous future, stay with us!

What can I learn from “Como Organizar Sua Vida Financeira”?

Self-knowledge is critical to financial success. Ignoring or omitting expenses will only postpone the problem and leave the dreams further from fulfillment;

The household budget is the tool that assists families in organizing expenses and income. It helps keeping expenses under control;

You must know your tax obligations, otherwise, you may have problems;

Planning is not just about paying for household expenses. All family buying desires should be equally budgeted, regardless of value;

Credit cards and loans are not always villains. It's important to understand these tools and use them wisely;

Unforeseen events happen, so having a contingency plan in mind is critical to ensuring your family in unexpected situations;

Investing periodically and often will ensure dreams come true and a comfortable future;

Studying and keeping up to date will improve your knowledge and consequently, decisions will tend to be more assertive;

For planning to be successful, focus is required. Actions such as keeping finances at your fingertips will make all the difference on the road to success.

Are you excited to know more about all these topics? Continue this reading with us!

Download the “Como Organizar Sua Vida Financeira” Book Summary in PDF for free

Do you have no time to read now? Then download the free PDF and read wherever and whenever you want:

What is the importance of Self-Awareness?

In this chapter of the book “Como Organizar Sua Vida Financeira”, the author Gustavo Cerbasi explains that the key to success is self-awareness of your current financial situation.

For this, it’s essential to involve the family to understand all the expenses, debts and investments you have.

Cerbasi shows that the value of his investments doesn’t include assets such as his home or car, but the amount of money invested in some applications.

He also quotes the concept of net profitability, and for him, it’s the value obtained in investments after the redemption tax discount.

But beware: income tax is deducted only when the amount invested is redeemed. This should be taken into account when calculating, as well as the period inflation rate.

Thus, the net return on your investments should be calculated and taken into account in financial planning.

In addition, the book presents 4 indicators that can be used to assess the equity situation, these are:

Minimum Survival Equity (MSE): This concept is nothing more than an emergency reserve that should be used in the event of unemployment or a situation beyond your will as a disease. This reserve must be made in an investment that has immediate liquidity. To find out your MSE, just perform the calculation below:

 MSE = 6 × Average Monthly Family Expenses

Recommended Minimum Asset for Your Security (RMA): The constitution of this asset is the ballast to maintain your life for several months. However, there is a differentiation to calculate this indicator according to its level of employability. This reserve is also directed to cases where the investment has immediate liquidity. To calculate it, you must use the following formula:

RMA = 12 × Average Monthly Family Expenses, for good employability.

RMA = 20 × Average Monthly Family Expenses, for low employability.

Ideal Equity for Your Age and Consumption (IE): This indicator will help you understand if you are on the right track in asset accumulation, so it takes into account your age:

 IE = 10% × Average Monthly Family Expenses x Age

Equity Required for Financial Independence (ERFI): The result of this calculation is how much you need to live the rest of your life with only the net income from your investments and small consumption of your reserves, making conservative investments:

ERFI = 12 × Average Monthly Family Expenses ÷ Annual Net Return on Investments

The author concludes the chapter by suggesting initiatives for your personal financial project, such as understanding your current finances, making smart choices, and devising a plan to meet the first indicators presented.

Here, Cerbasi explains that it’s essential to have a balanced household budget each month, so plans and dreams can come true.

He suggests that the family’s expenses should be outlined in an Excel spreadsheet or in a paper, for example.

To set up this budget, you need to subdivide your spending into categories, just like the example below:

Housing Expenses: mortgage, rent, municipal property tax;

Health Expenses: health insurance plan, consultations;

Transportation Expenses: fuel, parking, motor vehicle property tax;

Leisure expenses: cinema, sightseeing, travel;

In addition to including these categories, for the budget to be successful, it must be based on some assumptions such as:

The author concludes the section by warning that the budget should be monitored and, if necessary, periodically corrected and adjusted to meet personal financial goals.

Just listing your spending is not enough for your budget to be successful. With that in mind, the author suggests 8 fundamental steps you should follow:

Always write down or keep the receipts of expenses;

Arrange expenses to understand your consumption patterns;

Stipulate changes in your consumption in order to have more quality;

Pay attention to your new choices so that they are in line with your goals;

Always remember that your choices have consequences;

Use the current budget to simulate extreme situations, such as losing a job or receiving a large amount of money.

The book “Como Organizar Sua Vida Financeira” also addresses the actions that should be included in your planning routine, such as continually reviewing the budget, making the necessary corrections and adjustments, and taking the time to prepare and track the control sheet.

In addition, Gustavo Cerbasi suggests automating the saving habit by earmarking part of your income on scheduled applications monthly. A monthly saving of 10% to 20% of earnings is suggested.

It’s recommended that the budget has the vision of an end. Example: “This month I spent $200 on restaurant meals, next month I will spend $ 150.00”.

The unforeseen should also be equally “foreseen”, with about 5% of your monthly income sufficient to cover these expenses.

This chapter contains 3 more important advices:

Arrange the salaries of your expenses in chronological order;

Debit some of the expenses, paying attention to the companies you trust; 

Plan to pay taxes and other annual expenses.

Be sure to involve the whole family on it, including your children. Explain the importance of financial planning.

Also, be sure to keep your payment slips by type and by term! They may be important in the future.

There are 2 types of income: stable and variable.

For example, a civil servant has the stability of having his monthly income uneventful. This may cause some comfort on the part of the family because the family knows that they can count on this money.

Don’t fall into this huge trap! The household budget must exist regardless of the income situation.

But a self-employed person has to deal with variations in income month by month, which is a further challenge. Therefore, they should be more organized to meet their monthly expenses and still form savings for the realization of their dreams.

To conclude, the key to understanding variable income is to create a year-round mapping of revenues and thereby create a lean standard of living by exploring times that are more prone to eventual consumption.

Shopping: Do you know how to plan for it?

The book points out 6 fundamental tips for making your purchases a success.

Purchases must be specified in financial planning, regardless of whether they are ordinary or occasional. So always have a list at hand of your desires and needs.

For example, when shopping, we get lots of stimuli and if we don’t know exactly what to buy, we are tempted to fall into traps.

Tip 2 - Always Know How Much You Can Spend

In addition to knowing what you are going to spend your money on, it is crucial to know what is the maximum amount you are pretending to pay for this item, which helps a lot in decision-making. Always keep this value in mind before leaving home.

Researching prices is necessary before making a decision. This will probably save your money.

Tip 4 - Set Your Consumption Goals and Build Your Plan

Plan the goods you want to buy and set a deadline to buy them. Also define when each of them will be acquired, from an order by priority, for example: “I'm going to buy a washing machine and save $100 a month for a year”.

It’s important that this budget is made jointly with the family and contains short and long term plans.

Moreover, savings that will be invested, must contain the yield rate of the money invested.

Tip 5 - Be True to Your Goals and Track Your Performance

To be successful, it’s critical that you stay true to your goals and that your performance is tracked as your purchases are prioritized.

Always review your planning and see if you are really achieving what you anticipated.

Tip 6 - Negotiation/Communication Strategy

Before you go shopping, plan your trading strategies so as not to fall into sales talk.

If you think credit is the villain, you would be surprised to read this chapter of the book “Como Organizar Sua Vida Financeira”. With education and awareness, credit can be an important ally in anticipating your dreams or even a means of organizing your financial life.

The author Gustavo Cerbasi suggests that you should understand how your credit works, its limits and what are the advantages offered by the bank in which you are an account holder.

Always evaluate credit alternatives for the best value for money;

Study bank benefit programs and how they can be used in your favor, such as fees and fee exemptions;

Be aware and always have control of your spending and what you need to have a financially balanced life.

The content presented above reflects the vision and critical analysis  of our writing team, respecting the fundamentals of intellectual  property in Brazil (article 8, item I). 
No part of the book is  being copied. They are unique and exclusive content, always giving  credit to the authors and indicating the link to purchase the complete  work. PocketBook4You respects the copyright code in accordance with  Brazilian law, Law 9.610 / 98. 
This content is the exclusive  property of PocketBook4You and is protected by Copyright Law in its  articles 46, I, (a) and its article 47, because it is not reproduction  and do not imply any discredit, on the contrary, the moral right is  protected and, as noted earlier, the reader receives a link to acquire  the work. Reproduction of this material without permission of the  company is prohibited.

Note:

And receive a weekly summary of the biggest best sellers to read and listen to whenever you want!

Sign up for free

Click below and purchase the full edition of this work

Learn a new book every day, stay tuned to our newsletter and find out the highlights of the day.

Thanks for signing up! Starting tomorrow, we will be in your inbox with the best news and tips for your personal and professional development. Every day at 5:05 am

Now that you're done reading, don't forget to rate it too!

Strategy

Leadership & Management

Marketing & Sales

Business

Money & Investment

Biographies

Corporative Culture

Motivation & Inspiration

Communication & Networking

Productivity

Learn strategies for controlling and planning your personal finances, with the book summary of Como Organizar Sua Vida Financeira by Gustavo Cerbasi, so as not to make mistakes and to be successful in your financial life.

[ENG] How to Organize Your Financial Life – Gustavo Cerbasi.pdf

Learn strategies for controlling and planning your personal finances so as not to make mistakes and to be successful in your financial life.

Como Organizar Sua Vida Financeira - Gustavo Cerbasi

Como Organizar Sua Vida Financeira  - Gustavo Cerbasi,  Book Summary in PDF

Download summaries and listen offline in our app!