Economic break-even point – learn how to adjust your finances
Taking care of money is a task that can be difficult and calls for calm when it comes to paying the bills. However, many people have difficulty finding the economic break-even point and thereby losing financial control.
Nonetheless, avoiding unnecessary expenses is still a positive factor, but, no one needs to be genius or that strict with expenses. To do this, it is enough to have a minimum of knowledge and, thus, it is possible to avoid problems.
Therefore, we created this guide to explain about the economic break-even point and how people and businessmen can manage money. In this way, it is possible to make a profit and guarantee a little money in the cashier.
What is an economic break-even point?
This financial index serves to organize the payment of personal or business bills. Afterwards, the remaining money is divided between the partners of a venture or for personal use.
Nonetheless, a company can sell all its inventory, but it needs to guarantee that the sale will bring profit to the business. With this, the enterprise will remain in the market and with commercial value.
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However, there are three ways to maintain the break-even point. However, the concepts and calculations are similar, however, there are some differences. Therefore, understand below how they can help control your finances.
accounting
Companies use this modality to keep expenses fixed according to commercial results. With this, it is possible to have an idea of what can be turned into profit after the monthly payments.
Economic
This point stands out as a necessary factor to maintain the flow of a business. To do so, the person chooses an investment or analyzes the results and, thus, may have a higher profit margin.
But, this option must show an equal or greater result over previous investment options. In this way, the economic point creates opportunities and advantages to keep the cashier full.
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Financial
The financial point can eliminate expenses that you or a company do not need to be responsible for. However, expenses are declared and accounted for in the financial transaction history.
On the other hand, the financial point shows only the administrative and operational expenses of the business or personal routine. That is, it is the profit before making the payments.
How to calculate the economic break-even point?
The economic break-even point is calculated on monthly expenses and profit margin. To do so, it is necessary to deduct everything that comes out of the cashier and, in this way, it is possible to have an idea of what will be left over.
Thus, to maintain the profit structure, you need to balance the factors that affect cash flow. Therefore, a product that the company sells contributes to a more detailed analysis for the market.
Are there any rules for using the money?
Brazilians are on a tight budget, so expenses must be under maximum control. Nonetheless, Brazilian inflation is decreasing the population's money and thus the solution is to tighten the tale.
Still, financial specialists recommend taking care when going to the supermarket, filling up the car and even with superfluous expenses. But, many people lose control over money.
However, money has no rules for moving. To do so, a person must know the economic scenario and, with that, Establish what should be a priority for your expenses.
Therefore, the consumer needs to keep an eye on the market and avoid impulse buying. Therefore, the rule is to avoid debt to keep control of money, whether for personal or business use.
What precautions are needed to avoid accumulating debt?
Debt is part of many people's lives, however, it is possible to eliminate debt gradually. To do this, you must make a list of what you owe and look for solutions to pay.
On the other hand, the pandemic broke many companies and left some people in delicate situations. Since, with the financial imbalance, the money stopped circulating and brought losses to several sectors.
Therefore, you must be careful and seek a healthier financial life. In addition, it is worth talking to the family to clarify the problems and find ways to get out of the red.
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