One of the most common myths is to think that you need to earn a lot of money to save. Although the cost of living and financial commitments can make setting aside money seem difficult, there are simple strategies to start small and build a solid financial foundation.
“Saving begins by having financial education, discipline and planning, not by generating a specific amount of income,” explains Juan Maldonado, Vice President of Institutional Relations and Corporate Governance of BAC Guatemala.
To do this, there are different savings options, depending on the needs of each person, an example is the BAC Alcanza savings account or the Fixed Term account, which is 100% digital.
Saving is not a one-month effort. It is a habit that strengthens over time and requires discipline. Maldonado recommends periodically reviewing the progress of your goals and celebrating progress, no matter how small it may seem. It all depends on how the budget is organized; there you can include a fixed amount for the savings goal.
Five steps to start saving
1. Define a specific goal
Saving without a purpose makes consistency difficult. You must define if you want to create an emergency fund, if it is to start a business, grow an existing company, etc. The more specific the goal, the easier it will be to stay motivated.
2. Order payments
One of the most common mistakes is trying to save only the money left over at the end of the month. “Savings should be treated as a priority, the ideal is to separate a part of the income at the time of receiving it, before starting to spend, for this, it is ideal to include a fixed amount of savings within the monthly budget,” recommends the expert.
To facilitate this practice, BAC recommends opening a savings account separate from the account used for daily expenses. Having a specific account allows you to automate periodic deposits and maintain better organization of personal finances.
3. Start with a realistic amount
BAC specialists recommend starting with a percentage that is comfortable for each person, for example, 10%. As finances become more stable, you should gradually increase until you can save 15-20% (or more) of your monthly net income.
4. Identify expenses that can be reduced
In most cases, the reason why money does not seem to be abundant is due to small monthly expenses that, when added together, represent a significant amount, the so-called “ant expenses.” Reducing some of these expenses, or planning for them as necessary, can free up resources to allow for more savings without significantly affecting lifestyle. It is also recommended to keep a daily record of expenses so that you can easily identify those that you can eliminate and; transfer that amount into savings.
5. Create an emergency fund
Before focusing on long-term goals, BAC recommends building an emergency fund equal to three to six months of fixed basic expenses. This fund acts as a safety net for unexpected situations such as accidents, illnesses, urgent repairs or loss of income.
Make it a habit
Once you have begun to build a savings habit and have a significant fund, you can consider investment instruments to make your money grow. “Fixed-term deposit certificates are an option for those who want to obtain returns on their savings without assuming high levels of risk. By keeping the money invested for a certain period, it is possible to generate interest and move faster towards medium and long-term financial goals,” explains Maldonado.
Take these financial tips into account to maintain your financial health and remember that BAC has different tools to provide you with positive financial advice at https://finanzaspositives.com/guatemala and the “Hágale Numeros” podcast on Spotify baccredomatic.com/es-gt/personas/landing/podcast-hagale-numeros