2023 poses challenges for debtors and savers, both individuals and companies and even for the Government due to high interest rates, inflation and prospects of less economic dynamics, compared to 2022, when GDP grew 7.5%.
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According to the Tyba financial platform, which works as an investment channel, to these aspects we must add the war between Russia and Ukraine or the zero covid policies applied in China, and even the reforms that Latin American governments are promoting. “All of this, in one way or another, ends up having an impact on people’s pockets.«, given.
Reassess expenses, save and have an emergency fundThese are some of the recommendations to take into account to have good finances in 2023, the platform mentions.
Despite this situation, Valdemaro Mendoza, CEO and co-founder of Tyba, points out that the current scenario must be seen as an opportunity, since it allows people to reinvent themselves and build healthy financial habits.
“Usually, in the midst of any crisis, there are always great opportunities. The economic imbalance will lead the majority of Colombians to adjust their pockets, change their consumption habits and carry out good saving and investment practices.Mendoza highlighted.
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Five key recommendations
The fintech tyba, elaborated five recommendations to have a greater financial intelligence in 2023:
1. Evaluate expenses and update the budget: Most people do not keep in mind the ‘ant’, ‘ghost’ or ‘vampire’ expenses, as they can be terrifying for finances. For example, ask yourself and identify these expenses and take some action on them, such as: how many streaming platforms are paid for and can they actually be used? You continue to pay for the gym membership that you no longer go to and since everything is more expensive than a year ago, you have to update the values of fixed expenses in the budget and everything that requires adjustment.
2. Set goals for the year: It is important to set financial goals as if to preserve personal achievements, for example, save 10% of salary until you have three months of salary as an emergency fund or invest 8% of income in Collective Investment Funds every month for 3 years to fulfill the goal of studying abroad.
According to the Tyba Investor Mood Index Study, Colombians who do not save do so mainly because they do not have enough (35%) and because they do not have sufficient income (25%). In that sense, setting clear goals from the beginning of the year should be a priority.
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3. Pay credit cards on time: Something that can affect personal finances is not paying a credit debt on time, since not only do interest costs start to run due to late payments, but the credit history is also affected.
4. Build an emergency fund: It is not only having savings for simple eventualities, but also having the possibility of having a fund that represents 3 to 6 months of salary to be able to be prepared for a complex situation, such as a medical emergency or for a moment of difficulty.
5. Extra money to boost personal finances: In some opportunities it will be possible to obtain additional income that complements the salary. That capital can help you meet financial goals, such as saving.
Tyba recommends making diversified investments, with assets or vehicles that allow you to have goals of different terms, exposure to different countries, regions and sectors.
Other approaches to saving
For its part, Financiera Progressa, a savings and credit cooperative from its financial education program ‘Progress Financially’recently shared several tips on how to save from the daily work and home.
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1. Check the cell phone bill because you can probably choose a plan that is more adjusted to your consumption to reduce the cost of the service.
2.Avoid taking taxis by planning the time of the journeys during the day. If possible, use the bicycle.
3. Cook, because you not only save money but also eat healthier and save medical expenses.
4. Review financial products. Eliminate those that charge administration costs. If there are products with high interest, ask for a portfolio purchase with more favorable rates.
5. When extra income is generated, make an investment. Through this figure you will not only save your money safely, you will also earn excellent profitability.
DataCrédito Experian says that in Colombia, a person who borrows an amount of money informally for free investment could pay the lender 55% annual interest, and in some cases 60% or more.
This drop-by-drop modality is mistakenly considered by many people to have more benefits, or to you can get the money immediately and without any requirement.
But, although this modality seems easy, there are payment terms, maximum application amounts, requirements for the procedure, and additional applications disguised as guarantees to structure the process.