Very high contexts inflation like the one the country is going through can, in some way, threaten the possibility of keeping personal finances stabilized. It is not new that this dynamic in the Argentine economy usually generates uncertainty, the permanent surprises caused by the escalation of the cost of living and the condition of always having to adjust our income to changes in the prices of the products and services we consume. However, This financial order is not an impossible mission to achieve, even in this context of shocks.
Contrary to what one may think, inflation does not completely discourage an individual’s ability to perform investments, but, in certain cases, it drives decisions that end up being more beneficial within a well-planned scheme. To begin to defend ourselves from the inflationary “rattle”, it is advisable to take into account three basic steps that will not solve our lives completely, but that will help us establish ourselves in an idea and a path to follow.
Don’t take your eyes off our budget
This primary tool of all financial planning requires our perseverance. Without becoming obsessive, in a scenario of high inflation it is necessary that this attention on our “little board” maintains its regularity and does not decline, because the budget is for our finances like living with a doctor at home, who in the event of any symptom or discomfort, It will be able to give us a diagnosis with greater certainty and speed. The well-controlled budget speaks for itself and shows us all the red and green flags of our numbers.
Manage loans and debts
Liabilities are part of the financial board, therefore we must assume their presence without fear, although with the utmost respect for the role they play and preventing them from being out of control. Two of the most common on people’s financial spectrum are loans and debt, and being clear of both elements in this overwhelming context would be a huge asset.
According to the Financial Inclusion Report (IIF) prepared every six months by the Central Bank and whose last publication was last month, the percentage of the adult population with financing in the national system registered an increase of almost one percentage point compared to December 2022. and reached a participation of 55.4% as of June 2023. In this way, Just over 19 million Argentines remain under some type of financing and carry one or more debts, although the entity’s report indicates that the negative balances are smaller.
The most common financing is credit cards and personal loans. In both cases, it is important to know the current interest rate. In the case of plastics, the cost of making only the minimum payment and rescheduling the rest can unleash a nightmare from which it is very difficult to wake up, especially if those consumptions are very high.
In opposite cases, the card is recommended whenever you are certain that this financing will be able to be covered, given that access to credit is indeed something advantageous.
In reference to loans, a lot has to do with the entity that grants them and under what conditions (the cost in a financial institution is not the same as in loans subsidized by the State, to contrast just a few examples), but it is always better not to have have to resort to them.
Ice on the mattress
The warmth and sense of security that home gives us acts in an influential way on many people when it comes to assigning a destination to an amount of money in hard currencies. Although this protection does not generate a profit, many choose to keep it in their home because it gives them peace of mind.
Strictly speaking, almost no one actually does it under the mattress, and the figure refers more than anything to a very ancient custom. In any case, whether in a closet, in a box, behind the toilet or under a piece of ceramic, the people who hoard in their homes have a markedly conservative profile and, for some reason, prefer to enjoy a supposed tranquility rather than putting eggs in different baskets and give your savings a little more adventurous life.
Behind that coat, on the contrary, there are also risks, although they don’t usually keep us up at night so much: theft, fire, humidity, deterioration or forgetfulness. That is why no self-respecting financial advisor would ever recommend this strategy. Although we must remember that, between the glacial state of the “Colchon Bank” and the waste of the Wolf of Wall Street, there is a wide range of possibilities that, even without breaking that conservative investment profile, can be contemplated.
Source: Ambito
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