What are ant expenses, the invisible leak that impacts the end of the month

The small purchaseswhich go unnoticed and do not attract attention, can represent a significant amount of money if they are not contemplated and controlled within the routine. This is how you attack the effects of the economy and they put on Look at the payments that are essentialsuch as food or services.

While it’s okay to make a wish come true, the key is also to plan for it. To do this, they must be identified by taking into account that:

• They are repeated periodically, that is, daily, week to week or month to month. Being everyday things, they seem to have no major impact on personal calculation.
• They can be avoided or replaced by a cheaper alternative.
• By adding, the total could be reduced and improve the financial balance.
• They are impulses that do not fit into any of the fundamental categories.

From Financial Womanthe start up that trains in terms of investors, ensure that the “ant expenses” they should not exceed between 5% and 10% of the individual budget, as long as it covers fixed expenses and a minimum percentage dedicated to savings.

“Finance management must be adapted to our tastes and the lifestyle we want to lead”they said, and clarified that we should not deprive ourselves of the Little pleasures of lifebut you have to manage them strategically.

For example, for a person who loves specialty coffee, this can be pampering and a long-awaited moment, while others prefer to prepare it at home and thus increase their ability to save for a goal that most appeals to them.

An effective way to maintain control is to register the sudden purchases they are barely done and reflect on why they happen. Thus, it will be known if they are really worth it and if they can be avoided repeating them in the future.

Another tip to avoid leakage is to review your subscriptions or memberships to see which ones are actually used.

How to make a monthly budget

Although each budget is unique, it is recommended to apply the 50-30-20 rule.

In detail, the fixed costs should not exceed 50% of what was received, Variable expends should not exceed 30% and ideally 20% should be allocated to saving.

Within the latter should be included the emergency fundwhich must cover between three and six months of total expenses, in case of unforeseen events.

Regarding investment, both trust and knowledge are very important pillars, so training and education play a leading role.

IOL invested online offers free webinars where you learn from “How to open an Investment Account” until “The way to operate Dollar MEP”. They also suggest understanding the type of person each one is, whether conservative, moderate or aggressive. For that in IOL there is the “Inverter Test”where after answering some questions, the system informs what is the set of ideal assets and what is the risk willing to assume.

Investor profile: what are the three types

• Conservative: You need a low-risk investment portfolio to achieve significant stability in your investments without requiring significant potential growth in their value.
• Moderate: does not seek current income, but does require a modest potential increase in the value of your investments. Likewise, he tolerates some volatility, but seeks to face less risk than the aggressive investor.
• Aggressive: looks more for an investment portfolio that captures significant capital gains in high-risk operations, thinking that this exposure to higher volatility will be rewarded with a higher return.

How to maintain healthy financial habits

• Have an updated budget and make projections of it.
• Create an emergency fund.
• Define and keep in mind short, medium and long term objectives.
• Know your own emotions and consumption habits.
• Plan the future thinking in the long term.
• Invest in financial education.