What is saving indeed? This is a question that we all think we know and the truth is that it is not. By definition, savings is the amount of income that a person, family, company or organization (public or private) does not use immediately, but reserves it for the future. Thinking that saving can only be done by those with a high income is based on a wrong premise because we can all spend more than usual and many can spend less than usual. With this little game of words, what I want to say is that in these times of temptations, very few billionaires may not know what to spend their money on and many others will say that they do not have enough for basic needs.
Saving is a habit that must be achieved to achieve future well-being and well-invested savings can boost income by improving the lifestyle of those who understood it that way, but where do you start?
- The first step is to know, how much and what do I spend it on?, for which it is important to record each expense on the scale that is possible. Are you organized in your family? Write down: food, travel, school, recreation, financial expenses, the interest you are paying on your credit card, or at the home appliance store, how much do you pay in installments and could you buy it in cash? Do you need the car you have or would a cheaper one provide the same service?, etc. Rank each expense by its importance.
- The other aspect is to evaluate the income: What is the income? Are you paying for all your work? Income is not just salary at the end of the month. You must also compute all the activities that you develop, they all have a value.
- Establish a balanced budget where you include everything that is essential and eliminate the superfluous. Is that daily coffee with friends essential? Is it essential for those weekly dinners, those frequent vacation trips?
When you made the decision to save, you must take out the amount, let’s say 10%? Separating it first. Then, you must adjust the budget to the remaining 90%. Eliminating superfluous expenses and with the budget in hand it will not be difficult for you to arrive. By applying savings discipline you will begin to see that it can be done.
So far we have seen how to separate money from savings, but this alone is not enough, the time of the piggy bank (the little pig) is over as our ancestors used to, today inflation quickly erodes that savings, with inflation money cannot to remain as such, asleep in some container or as it is commonly said under the mattress, today it is essential to move to the next step: investment.
When talking about investment we must consider 2 aspects: the protection of value (through the purchase of precious metals such as gold, silver or others that guarantee preservation, but require special care), the purchase of hard currencies (such as dollar, euro etc.) that also suffer some inflationary and devaluation effect, and finally the actual investment of savings.
The real INVESTMENT is putting that savings to produce, but… how? It’s simple, through a stockbroker who advises you (most do it at a minimum cost or for free) you can lend it in exchange for an interest rate, buy issues from companies in Argentina or abroad and leave it in the hands of their professionals. While they are looking for ways to earn money for their companies, they are working for you, who are part of those companies.
Contact information:
Instagram and Facebook: HJD Investments
WhatsApp: 2474 513620
by CEDOC
