“In Spain there is no adequate savings culture”, conclude the studies on financial health. Despite the fact that the trend is on the rise and many people are adopting savings methods, there is still a large percentage of the population who must apply them in their lives in order to maintain an economy at home and in their pockets. .

Without going any further, the Spaniards are spending more even knowing that we are in a grim situation with rising prices and inflation. It’s true, in our country there is a confused economic sentiment between rising prices, inflation, possible recession and consumer habits.

That’s to say, more is spent, amid an economic scenario that citizens see as ‘bad’ or “very bad”, as evidenced by the CIS barometer

These behaviors have psychological antecedents and a lack of knowledge on how to invest and save with the money we receive for salary or retirement. Regarding the latter, we provide a list of methods that can help us lead a better economic life.

Savings habits can be formed and improved, but to do so there is an irreplaceable first step: education. Lack of financial education increases the risk of inequality, since individuals do not know the tools needed to be financially healthy and make better decisions.

kakebo

Kakebo is the Japanese word for household account book and that is precisely what this method is based on, aiming for. At the beginning of each month fixed expenses and income must be recorded (payroll, electricity, food, etc.). With this it is possible to know how much money will be available. After this step, the method consists of noting each expense, however small, and classifying it accordingly: leisure, clothing, travel, etc.

The goal? Learn to improve finances. The philosophy of the Kakebo method is to know how to identify which are the essential expenses and which can be eliminated to achieve the savings objectives. Fumiko Chiba, author of Kakebo: The Japanese Art of Saving Money, indicates that the savings margin can reach up to 35% of income.

set aside first

ALP stands for “Laying aside first things”. Consists of allocate part of the money to savings as soon as you receive the main income (payroll, pension, etc.) and live the rest of the month with what’s left. For this to work, you need to set realistic goals. For example, if a person enters 1,000 euros, he cannot allocate 800 euros to savings, but 100 euros can.

To know how much to save, experts recommend making a analysis of fixed income and expenses that take place during the month. In short, make a budget. With this, a coherent decision based on the current reality can be made.

Savings with the Harv Eker method

This method searches through distribution of income, avoid financial mismanagement. Canadian businessman Harv Eker, after a major economic setback due to inadequate management, began to analyze the relationship that people with great fortunes had with their money and that is how he developed this system.

There distribution proposed by Eker for income It is 55% for fixed expenses and basic daily needs: housing, bills and food. With the remaining 45%, five other partitions will be made: 10% to invest; 10% to continue training; 10% for leisure and unnecessary purchases; 10% to save it without investing it; and 5% for charitable donations and causes.

50/30/20 rule

This is one of the best-known budgetary approaches. Based on structure income according to the 50-30-20 rule: 50% of income for housing, food and other basic needs; 30% can be spent as you see fit; and 20% for savings.

investment products

Another of the alternatives to obtain a cushion is investment, especially in an environment like the current one in which inflation reduces purchasing power, that is, with the same money you can buy fewer goods and services than a year ago. Therefore, it is important to know what investment alternatives exist and which vehicle best suits each person’s profile based on their goals and needs.

To do this, diversification, the classic don’t put all your eggs in one basket, and planning. It is essential to think about how much you can invest, for how long and, above all, how much risk you are willing to take. There is a wide range of products depending on the investor profile: investment funds, ETFs (traded funds), pension plans, etc.