As nobody better than you knows your finances, there is no one better than you to make the most accurate economic decisions. However, to achieve success in your personal and family economy, it is essential to be well informed and to build a solid base of financial knowledge. During the past week, and through a touch of humor, we wanted to inform you about financial concepts so that you become you make your own decisions.
Finances accompany you every day.
Although the Financial Education Day is celebrated on a Monday in October, every day you should worry about knowing a little better the financial reality that surrounds you. No, financial knowledge is not only for economists and experts in the field, it is also for you, saver, because you are continually facing decisions that affect your personal economy and that of your family . And take it easy, because you have at your disposal all the necessary information to expand your financial knowledge and so that your decisions end up being the most successful, for you and your environment.
We will give some examples: understand the breakdown of an invoice , assess what supplier supplies you, understand the current economic reality, keep the daily accounts, develop a monthly budget or for holidays, how to overcome the return to school without problems , what aspects to consider when requesting a loan, what to take into account when investing, which bank fits best with you, what pension plan you want to open, how your salary affects your income tax, how your salary is broken down, what salary withholding fits your income , what home is best suited to your family with your budget, etc.
Let no economic term leave you KO.
As you see, throughout the day you are interacting with concepts of economics, more or less directly. It is not about getting to study them by heart, as in the times of the institute, training in finance is much more fun than you have been able to check all last week in our Social Networks.
Do not put obstacles to your financial education, just the opposite: follow your curiosity, encourage your interest to go a little beyond an economic fact, search, read and learn . If there is a term that sounds like Chinese to you , look for it and soon you will learn its meaning better than ever.
You also do not have to strain your brain fighting with complex articles, or dense economic publications, but you can tune the ear when the radio or television discuss issues of economics. A few minutes of economics around here, a few minutes over there, this morning on the radio, from the mobile phone in the aftermath, then in some television chat room … Little by little you are absorbing concepts in the areas that interest you most. come the moment of truth, some term still escapes you , that does not leave you KO, you use the Internet and, after a moment of reading, you will know how to solve any doubt .
Think of it as small challenges, break down your financial doubt into smaller ones. For example, if you want to change the company that supplies you electricity because you think you pay a lot:
- How much is much? How much consumption would be reasonable?
- What concepts am I paying on the electricity bill?
- Do I have the rate that best suits my hourly consumption?
- How much would another provider charge me?
- Should I also change my energy habits at home?
Another example, you are considering starting a pension plan . But dozens of doubts block your choice. Being so decisive for your future, what are you waiting for? Start now to solve doubts, one by one:
- Panorama of public pensions little hopeful?
- What is your saving capacity and how much is the maximum that you could contribute?
- Tax implications in your next IRPF statement.
- What is your risk profile and what combination of fixed and variable income makes you feel comfortable?
Or if you see next the purchase of a house, nobody is going to ask you to study the Mortgage Law but, why not start today to assimilate concepts like Euribor, interest rates, installments, amortizations, fiscal bonuses … And to put more Attention to the articles on mortgages of online press and blogs of economy. When the time comes to mortgage you will be better informed to choose the financing that best suits you.
You make your own economic decisions
Nobody is going to decide better than you what is best for your finances . They can advise you, but nobody like you knows the entries and exits of your bank account, your loans, your investments, your way of saving, your risk profile, your personal and family reality. As if it were an exam in finance that you approve or suspend with your daily decisions of economy. Your choice of a set of alternatives for investment or savings, or planning your economy is not based on chance, nor on what has gone well for your friend, nor necessarily on what your bank manager recommends. The best financial decision you make based on your good financial education . Or in other words, your knowledge in finance is outstanding when you are able to consistently choose everything that affects your economy . On the contrary, a very deficient will lead you unmistakably to be a money loser .
Do not be afraid to make mistakes, because mistakes are part of learning. For example, as an investment you can start with a deposit, or put a small part in an investment fund and see how it works, as a financial cap .
Achieving the expected return on your investment fund , repaying the mortgage without problems, retiring with a good pension, achieving the desired savings, or facing household expenses without problems every month, are objectives to be achieved. However, the road to travel to them is not always easy . The logo of Financial Education Day in the form of a tree, with more or less intricate branches, but which always end up bearing fruit, accurately reflects this .
Saving as a basis for your financial education.
Savings are essential to achieve financial equilibrium at home, that is, each month the income is sufficient to cover the expenses. But be careful, because you can not look for that balance in an isolated way in a month , but in the long term, because probably in the future you need to face higher expenses, some predictable and others totally extraordinary.
Think of any setbacks, such as illnesses or accidents, in the next holidays, in the studies of your child, in a new car, in renovations in the home, in appliances that break down, etc. For all these expenses that go out of the usual, you have two options:
- or borrow, something that should be left alone for exceptional or special situations, and unexpected disbursements.
- or pull the savings, the savings would have to be the solution.
Saving is the best ally to maintain financial balance at home . To save, you need to establish an objective (how much to save, how long), plan expenses, meet a budget (expenses, weekly, monthly, for vacations) and make constant financial decisions. Without a doubt, learning to save is a basic pillar of your financial culture. If you also share your ideas with your children, make them part of the family budget and how much each thing costs , you will be promoting a fundamental financial education for their future.