Most people do not save because they do not devote the time and effort to basic calculations on income and expenses, and because they are not willing to make some sacrifices, usually easier to assume than they think. From Fidentiis Gestión we present 7 aspects to consider in order to start promoting savings, on the occasion of the International Savings Day, on October 31st.
1.- I do not have time
At the beginning, it may take a little more time to make a budget with an estimate of income and expenses. After that, you simply have to follow up and let the math take care of the rest.
If you are too busy to make the present and future financial situation a high priority, then it would be interesting to consider what you have time for. How much time is devoted to physical well-being and sports? Compare with the one dedicated to financial well-being.
2.- I'm too lazy
Dedicating time to the numbers is boring and many times we leave it for another time, or we delegate it to the couple or a family member. But there are other heavier things, like having to spend time looking for another smaller house or another school for the children because at the time there was not a correct estimate of what could be paid from a mortgage that was going to live with us during 20 years. Or having to talk to relatives and banks to find funding for that extraordinary expense that had not been anticipated. Does anyone know of a close case?
3.- I have it in my head
I know more or less what I spend each month and if I can allocate something for the pension or retirement plan at the end of the year. Can you imagine a financial director telling the CEO of the company that he has the budget in his head, that he knows more or less how the exercise will end, and that he can visualize the projections for 5 years? I would be fired before the meeting ended.
The management of personal finances demands a personal discipline that soon becomes a simple routine.
4.- I do not know anything about finances
That nobody has problems calculating the budget when going on vacation? And to which a margin is almost always left in case there is an extra expense on what was initially budgeted?
It is not necessary to know about finances to know what is paid and what is spent today, or to make some simple estimates of what will be paid and spent in the future, or to calculate what financial cushion is needed in case of unforeseen events. Unemployment situation or extraordinary expense.
To save you do not need to know about finances, and to invest what you have saved you can always subscribe investment funds where management is delegated to professionals, consult a financial advisor, or use some of the digital tools that are being extended.
5.- Financial advice is expensive
Compared to what? How much does a gym cost a month? And a consultation from a specialist doctor? Or a good hairdressing session?
Having a certain level of well-being or financial tranquility is less expensive than you think. A meeting with a financial advisor once or twice a year can be more than enough.
6.- With all the expenses that I have, it is impossible to save at the end of the month
It is not if we do the exercise mentioned above. Once we see on paper where we spend our money, and which are the expenses that take most, the list is innumerable in the items that can be adjusted.
And before major new expenses (house or car for example), which will live with us for many years, it is better not to rush into our debt capacity today, but to adjust it to the structure of expenses that we think we will have in the future.
7.- Thinking about retirement and that the pension will not come will cause me anguish
Maybe this is the only "no myth", so it's better not to waste a day: you have to start by calculating what will be the expected expenditure structure for that day, more than probably less than today, and only with that already We will see that they will be one euros less than we will need.
And finally, a quote from Warren Buffet "Do not save what you get after spending, spend what you have left after saving."