The importance of savings

In NATIVU we believe that being tidy with your money will allow you to lead a quiet life, so we present the following information.

What are savings and how can you start?

Savings are that part of the total income, which is not destined for immediate consumption, is money that is reserved for future accumulation.

It is of great importance because it will allow you to have economic stability, security in case of emergency, etc. And it also gives you the option of reaching goals without reaching indebtedness.

When setting aside a percentage of the monthly or biweekly money to be saved, it is vital to first identify a specific objective: Why do I want to save and how much money will I need?

Subsequently, you have to define the fixed expenses: how much money do I need to meet my basic needs (housing, food, water, electricity, etc). This is the money that must be paid month by month, without alterations.

From the remaining amount, you can determine a budget for the savings account. If constant, you can also calculate how long it will take to raise money to reach your goal.

Then, how much should you save?

According to the Summa Magazine and experts of the Costa Rican Banking Association, the ideal is to save between 10% – 15% of income, every month. In this way, you can develop the habit gradually. The important thing is to start, even if little and not give in to the “whims”.

Now, if you notice that the discipline of saving is difficult for you, you can open a bank savings account, exclusive to the goal you set. This way you will avoid using that money for everyday investments. In the same way you can modify your consumption habits, to establish priorities.

Saving is a healthy habit that will allow you to live in peace and guarantee you greater security, financial independence and quality of life.

It is preferable to consume responsibly today, than to worry about indebtedness in the future. Don’t wait any longer and start today the good habit of saving!