5 financial mistakes in uncertain times

The uncertainty scenario can result in you often making financial mistakes that make it impossible to improve your income and thus balance your economy.

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5 financial mistakes in uncertain times
5 financial mistakes in uncertain times

The opinions of the employees of s You are personal.

During the pandemic, 12 million Mexicans lost their jobs, and according to INEGI, others have seen their working days and their wages cut. This situation caused Mexican society to change its economic activity significantly.

To this evil comes the lack of a habit of saving National Financial Inclusion Survey (ENIF) Of the National Banking Securities Commission (CNBV) presented in 2019, 42% of Mexicans have never officially saved anything, and 14% have stopped doing so. We identified based on this panorama of uncertainty created by health contingency the five most common financial mistakes::

1. Apply for loans based on future economic income

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After the pandemic, the Mexican government and banking institutions created attractive credit options for society. The most common mistake in a wide range of credit options is overindebtedness. This situation becomes complex when the payments are seen on the basis of measures that are to be implemented in the future as a company or contract. The decision to purchase a debt must be supported by current economic income, and the planned payments must make it possible to reduce the debt and have an amount of cash available for basic costs and emergencies.

2. Buy unnecessary items

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Leisure time at home has enabled people to visit various online shops and buy household or personal products through attractive offers. These costs can prevent a basic need from being met or the possibility of saving being delayed. Any decision that requires expenditure during the health emergency must be based on logic and not on emotions.

3. Do not control expenses and income

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In uncertain times of the year, it is important to have a financial plan that has specific goals within a clear time horizon and that can be updated every two weeks or monthly. You need to include spending and revenue as this season’s spending patterns may not match those before the pandemic. This counteracts the feeling of insecurity after a disorganization and a lack of identification of the really necessary products or services. If you don’t leave the house, savings will be made that can generate “extra income” that can be misused to buy non-essential items. It is best to refer you to an emergency fund or to invest.

4. Don’t look for a new source of income

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One of the most common mistakes when you have savings is that the money is stopped. The key to saving goes beyond creating an emergency fund as it is important to increase that number. It is advisable to evaluate the best way to generate performance. It is necessary to understand the types of investments available, the investor profile you identify with, the amount you can start with, and how money works within this investment option.

5. Don’t diversify

Image: Adeolu Eletu on Unsplash

The key to increasing your money is to be open to new opportunities to take advantage of your savings. It is positive to know all investment opportunitiesr and its conditions such as term, yield and investment plan. It is functional to get returns from different sources and to participate in different projects in an informed way, that is, to understand the benefits and risks of each type of investment according to your profile. For example, investing in real estate means securing land and property that makes the investment tangible and quiet for certain types of investors, a point that may not be relevant to others. It can be a mistake to save all savings in one option. trying and knowing is an ideal option when it comes to making money.

Making financial mistakes in times of uncertainty is common, but not a viable option. It is therefore worth paying attention to and understanding these points so that the goal is achieved: control of the family or personal economy and creation of opportunities.

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