Discover the five key rules to organize your finances. Remember that more important than the amount is constancy.
The opinions expressed by employees are personal.
There are many attempts and, unfortunately, also many times when starting the savings is only for a good purpose. Why is it so difficult to save? Although each situation is different, in most cases certain basic rules are ignored which, while not simple, are very effective.
Here we present them.
1. Save a fixed amount per month
The first mistake is to think about keeping “what about” in order to fortnight and the reality is that many times there is no surplus, but quite the opposite. That is why it is essential that when distributing household income, a fixed amount is allocated to savings, as is done with the payment of services. It is essential to start “today, today, today”. If possible this month, no later than the next. Remember that constancy is indispensable . Do not miss a month without saving and do not fall into the trap of spending too much thinking that “you will keep double the next”.
Like any good habit, it is hard to get it. Fortunately there are different ways to reinforce it: write down your agenda or register your deposit as a pending task in your account.
You can also schedule reminders in your email. If this is not enough, look for a very reliable ally to remind you when to save. Start with a small amount so that it does not become a straitjacket. If personal commitment is not enough there are other alternatives such as savings banks .
2. Think long term
The second most frequent mistake is to think only of the present, what you buy today with a certain amount.
If for example you can only save 500 pesos per month (excellent!) In one year you would collect six thousand pesos; in three, 18 thousand pesos and in five years, 30 thousand pesos, plus the interest generated by a good investment. Today these same 500 pesos would reach you for an abundant and good meal.
To succeed in saving think in the medium and long term: minimum 12 months. Remember that more important than the amount is constancy. If you can't save the 500 pesos of the example, it doesn't matter, save what is within your means and make accounts so you know how much you could collect.
3. Define a goal
Saving for a certain purpose (the initial capital to start your business, vacations abroad, a master's degree, a house hitch) is the best incentive. It is preferable to start with short-term goals (between three and six months), so the benefits achieved will reinforce the habit of saving.
After reaching a couple of short-range goals, try a medium-term one (one to three years), to finally take on a long-term challenge: buy a house, pay for study insurance for children, etc.
To achieve the objectives it is very important to prepare a financial project , which consists of defining three aspects:
a) What do I want
b) In how much time and
c) How much should I allocate per month to collect the final amount.
a) A mountain bike that costs two thousand 800 pesos.
b) I want it for October 2007 and I will start saving in June 2007.
c) I must save 560 pesos per month.
The more realistic you are when developing your financial project, the more likely you are to reach the goal.
Returning to the previous case, if your monthly savings level does not exceed 500 pesos, you can hardly collect the money needed to buy the cash bike. So the option is to delay the purchase a few months.
4. Increase savings, not spending
It is very common that when family income increases, expenses are also increased almost immediately, instead of allocating extra money or a good part of it to savings, which would be a more convenient decision.
It is worth asking: if even before the increase in resources you or your family lived with-say- 12 thousand pesos a month, there is no reason why they cannot continue to meet their needs with the same amount.
Perhaps the best option is to allocate 50 percent of the extra money to savings and the other 50 percent to current spending. The more you save, the greater the accumulated amount and the faster you will reach the goals.
5. Dare to invest
Saving and investing are not synonyms. Having the money in a bank account is almost like keeping it under the mattress, as far as interest is concerned.
Fortunately, there are several profitable investment options on the market (some very profitable), which fit different needs and budgets (we will talk about them in future editions). Millions are not needed to invest in them, in fact some start from 10 thousand pesos.
Money ends up losing purchasing value due to inflation. The next natural step after saving for one or two years is the investment. If you work hard, why not your money?
The lack of information is fertile land for the generation of myths. Here some of the most frequent around money:
* Savings is only for those with high incomes.
* Millions are needed to invest in the money market.
* It's no use saving 100 pesos.
* Bank accounts are a good option to invest.
* Buying on credit is the only way to acquire goods and services.