1. Save every month
Allocating a part of our monthly income to a savings account is essential to be able to face the unforeseen events of the future. According to the 50/20/30 rule, we should distribute our payroll so that we can save 20% per month.
2. Schedule an automatic transfer
To satisfactorily meet our objectives, one option is to schedule an automatic transfer for the first days of each month to allocate a portion of the payroll to a savings account. In this way, we avoid spending money throughout the month.
3. Do not abuse the credits
It is advisable to resort to credits or credit cards in a timely manner and not to cover day-to-day expenses, since our economy tuition could end up being in a hurry if we get into debt without caution.
4. Beware of over-indebtedness
Although it all depends on the salary or family responsibilities of each one, experts advise that no more than 35% or 40% of the monthly income should be used to pay debts or the mortgage so that our domestic economy is not in danger.
5. Write down your expenses to keep them up to date
Writing down our daily expenses on our mobile phone or in a notebook will help us control where we spend our money. In this way, we can assess whether we invest too much in things that we do not need. From there we can prepare a budget that will help us save.
6. Study the concepts you don't know
The concept of “financial education” can scare us. However, learning what certain terms mean will help us in our day to day life and it is easier than it seems. Concepts such as commissions, Erabor, APR or TIN will help us to better understand the fine print or the operation of banking products.
7. Set long-term goals
These goals can range from buying an apartment to saving for our retirement. It is never too early to start saving since this way we can take advantage of the compound interest of our savings account; interest that increases month by month.
8. Be cautious
We must regularly review the statement of accounts and cards to be able to react as soon as possible to possible suspicious movements and thus avoid being a victim of fraud. In these cases, the bank must be notified as soon as possible to cancel the affected card.
9. Consume responsibly
Financial education is not only related to saving, but also to how we manage our money every day or in what we invest it. Before consuming any product or service it is important to compare prices, as this will also help us save. It is essential to know, at all times, what products or services we are consuming, in order to avoid abusive clauses.
10. Know the risks of the products you hire
Each product or service hides its risk and it is important to know what they are to avoid abusive clauses or negative returns that can cause us to lose money.