It is not new that the dynamic of high inflation in the Argentine economy usually generates uncertainty, the permanent surprises caused by the escalation of the cost of living and the condition of always having to adjust our income to changes in the prices of products and services. that we consume. However, this financial order is not an impossible mission to achieve, even in this framework of simbronazos. Contrary to what one may think, inflation does not completely discourage an individual’s ability to make investments, but rather, in certain cases, it drives decisions that end up being more beneficial within a well-planned scheme. To begin to defend ourselves from the inflationary “rattle”, it is advisable to take into account three basic steps that will not solve our lives completely, but that will help us establish ourselves in an idea and a path to follow.
Don’t take your eyes off our budget. This primary tool of all financial planning requires our perseverance. Without becoming obsessive, in a scenario of high inflation it is necessary that this attention on our “little board” maintain its regularity and not decline, because the budget is for our finances like living with a doctor at home, who, in the event of any symptom or discomfort , will be able to give us a diagnosis with greater certainty and speed. The well-controlled budget speaks for itself and shows us all the red and green flags of our numbers.
Manage loans and debts. Liabilities are part of the financial board, therefore, their presence must be assumed without fear, although with the utmost respect for the role they play and preventing them from being out of control. Two of the most common on people’s financial spectrum are loans and debt, and being clear of both elements in this overwhelming context would be a huge asset.
According to the Financial Inclusion Report (IIF) prepared every six months by the Central Bank and whose last publication was last month, the percentage of the adult population with financing in the national system registered an increase of almost one percentage point compared to December 2022. and reached a participation of 55.4% as of June 2023. In this way, just over 19 million Argentines remain under some type of financing and carry one or more debts, although the entity’s report indicates that the negative balances They are minors.
The most common financing is credit cards and personal loans. In both cases, it is important to know the current interest rate. In the case of plastics, the cost of making only the minimum payment and rescheduling the rest can unleash a nightmare from which it is very difficult to wake up, especially if those consumptions are very high. In opposite cases, the card is recommended whenever you are certain that you will be able to cover this financing, given that access to credit is indeed something advantageous. In reference to loans, a lot has to do with the entity that grants them and under what conditions (the cost in a financial institution is not the same as in loans subsidized by the State, to contrast just a few examples), but it is always better not to have have to resort to them.
Ice on the mattress. The warmth and sense of security that home gives us acts in an influential way on many people when it comes to assigning a destination to an amount of money in hard currencies. Although this protection does not generate a profit, many choose to keep it in their home because it gives them peace of mind. Strictly speaking, almost no one actually does it under the mattress, and the figure refers more than anything to a very ancient custom. In any case, whether in a closet, in a box, behind the toilet or under a piece of ceramic, the people who hoard in their homes have a markedly conservative profile and, for some reason, prefer to enjoy a supposed tranquility rather than putting eggs in different baskets and give your savings a little more adventurous life. Behind that shelter, on the contrary, there are also risks, although they do not usually keep us up at night: theft, fire, humidity, deterioration or forgetfulness. That is why no self-respecting financial advisor would ever recommend this strategy. Although we must remember that, between the glacial state of the “Colchon Bank” and the waste of the Wolf of Wall Street, there is a wide range of possibilities that, even without breaking that conservative investment profile, can be contemplated.
*Gabriela Totara is a psychopedagogist and financial educator.
by Gabriela Totaro
