Financial education and the recovery of some habits lost in recent years is one of the few positive consequences of the financial crisis. One of the examples we have in the habits of saving and more specifically the ultimate goal of it, that is, to accumulate an income little by little to be able to buy a good or service in the future. To buy any good, in these years it has been more prized to use sources of financing – consumer loans, credit cards – that in addition to their cost, in many cases have led to a debt above the recommended and financial imbalances.
Therefore, with a healthy family economy, we must devote part of our budget to savings and one of the best products are savings insurance such as the CuenTAEgon that without a minimum period of permanence and with small periodic contributions will allow us to build capital to spend it. in what we most want, with the additional security of allocating a small part of our contributions to life insurance.
What is the best way to achieve our goal?
The best way to achieve this is to separate, from the moment we receive our income, a part of them for savings as if it were another expense. Set aside an amount every month and enter it into your savings insurance, and before you know it, you will have attractive capital. Withdraw money that you know you do not need, avoid many unnecessary expenses and allow you higher goals. A recommended percentage is to allocate a minimum of 10% of the income to savings, although any amount, however minimal, will deserve to be saved.
To know how much we can allocate for this purpose it is essential to correctly elaborate a budget. The starting point is to keep a careful control of all expenses, pointing them out in detail. You will be surprised at the total cost of many games and the possibilities and impact if you cut back on many of these games.
An essential step in preparing your budget is to know well in what you spend your money. To do this, distinguish the expenses in three categories:
- Mandatory fixed costs: housing, loan installments … The amount does not vary much from month to month.
- Variable expenses needed: food, clothing, electricity, etc.
- Discretionary expenses: all other expenses that, in case of need, could be reduced or eliminated.
The last ones are the easiest to cut even some items in a total way, while in the variables necessary only partially, for example in electricity changing habits or improving efficiency.
Finally, we must not forget that what is budgeted for certain expenses may not coincide with reality. Therefore, review the budget continuously, so that it adjusts to reality with achievable objectives.