Achieve greater financial stability with this good habit

October 31 was World Savings Day, which reminds us that having good financial habits implies various responsibilities, among them saving stands out, which is an alternative that not only allows you to have liquidity in times of emergency, it is also an opportunity to generate a change in your financial education and even contribute to the development of a plan for your retirement.

However, in Mexico there are still challenges in this area, including that related to active saving, which according to the Organization for Economic Cooperation and Development (OECD) occurs when a person deliberately sets aside money for savings. future in some formal or informal financial instrument.

In this sense, the National Banking and Securities Commission reported that during the period from 2012 to 2018, the percentage of the adult population that saved actively increased by 17 percentage points (pp), going from 51 to 68 percent .

“Active savings were found to be positively associated with living in urban locations, higher education, having a formal job, receiving a higher salary and being a man. On the contrary, as age increases, the prevalence of this type of behavior decreases ”, details the dependence in the document“ Savings in Mexico: products, instruments and evolution ”.

What I can do?

It is a fact that you do not need to be an expert in the field to start saving, the important thing is to set honest goals from the beginning and according to your financial profile.

For example, Principal proposes five steps to become an efficient saver, the first has to do with listing your income and expenses.

“Studying your current personal and family financial situation will help to know and add in detail the income you have and the expenses that are made month after month, giving a better overview of the economic situation of the home,” he advised.

When reviewing your financial situation, Principal also recommends identifying the debts you have, your ant expenses, those that go almost unnoticed but that when doing accounts, add a significant amount of leakage.

The second step, he added, is to define a budget, this step is important to improve your financial education.

The third step is to establish an emergency fund, all this after reviewing your financial situation, you must establish measurable and achievable financial goals in the short, medium and long term, in this way you will be able to know and keep in mind where the efforts made will be directed .

It is advisable to integrate within these objectives an emergency savings fund that is equal to three months of your salary, this will help to be prevented from any inopportune situation, “he said.

Opting for formal savings is the fourth step, for this it is recommended to do so in a savings account at a financial institution.

Finally, the fifth step is to take saving to the next level, this is when you already have a deep-rooted saving culture and a considerable sum and deposit the money in investment instruments.

“You can invest through various mechanisms, including investment funds, which are instruments that help plan financial well-being, prioritizing objectives that adapt to the profile of each person and seek the best opportunities to generate returns. ”, He advised.

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