Faced with this situation, an unknown is generated in the entire investing public: How do I take care of the savings that cost me so much to gather?
To answer this question, we must resort to different methods that allow us to optimize the immobilization of the liquidity that we have (available pesos) and make a correct management of our expenses.
As a starting point, the financial order is essential, separating what is available from what is committed.
When we talk about the commitment, we refer to the percentage of money that we must allocate to the payment of contracted obligations, such as: the gym, school, courses or remaining fees on the card. For this, it is recommended to bring an excel, table or any application that allows us to detail each of these expenses and their payment due date. Once this scheme is established, we know what percentage will not be able to be used to expand consumption, otherwise, we will break our budget line.
Another concept that I recommend always keeping in mind is that our expenses should never exceed our total income. For this we can use a flow scheme, which is nothing more and nothing less than a projection of how much cash is going to enter us in the coming months. With this we managed to have a real idea of the available income.
With our two tables (of expenses and income) already created, we can accurately know how much disposable income we have left to spend in our day to day and to save.
Now comes the time to plan. It is recommended that of our remaining money, after having paid our debts, we separate 50% for general expenses, 20% education (courses, materials, etc.), 20% for savings / investment and, finally, 10% for of contingencies.
To deal with overhead, two optimization strategies can be used. The first option is to have the money in payment platforms that generate daily interest, as is the case with many virtual wallets. The second option is to face daily expenses with the use of credit cards, which allow us to pay these expenses when they expire. Alert! This is only advisable for very organized people, since it must be established previously that the amount to be consumed with the credit card must not exceed the 50% projected for personal expenses. At the same time, this percentage must be invested in some asset that generates interest or returns and allows the potential of money to be squeezed.
So, At this stage, we still have to analyze the possibilities to invest these available balances that arise from the spending-saving distribution strategies.
For this it is essential to understand the time in which we are going to invest our money. Today, the most attractive alternatives to invest our money in different terms are mutual funds, since we can choose which of them is 100% suitable for us, depending on the time we are willing to invest, our objectives and performance.
In the case of credit card balances pending payment, it is advisable to generate positions in low-risk funds, which, if possible, give constant returns and have low volatilities. These characteristics can be found in our funds T+1 Adcap Wise Capital Savings and T+2 Adcap Wise Capital Growthwhich emerge as very interesting investment alternatives to position transitory balances that are already committed.
On the other hand, if we focus on the percentage corresponding to savings, we must look for funds that optimize profitability since under no circumstances will we make use of these, but rather they will focus on the long term and we will use compound interest at our favor at the same time that we will increase their total by 20% month after month. For these cases, the Adcap Wise Multistrategy Fund is a very interesting fund since it invests in high-value equities that will tend to appreciate in the future, increasing performance.
Finally, we have to determine what we are going to position our remaining 10% for contingencies. It is recommended to have this surplus in T+0 funds or any virtual wallet that does not restrict access to it, since contingencies or emergencies are not controllable and it is always advisable to have it available at hand.
Wise Capital Financial Advisor.
Source: Ambito
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