World Savings Week: how to create the habit of saving and why it is important to have it in a bank

There “World Savings Week” is an annual celebration whose main objective is to raise awareness of the importance of saving money for the future and to promote a culture that avoids unnecessary expenses. This year, it will be held from March 20 to 26, depending on the Superintendence of Banks, Insurance and AFP (SBS).

Saving money not only allows you to achieve financial goalsalso helps to have a greater future financial stability. In fact, according to a study carried out by the consulting firm Kantar, 73% of Peruvians say that carrying out this type of practice is important to them. However, the same study found that only 43% do it regularly.

In view of these figures, Luis Fuentes, director of Alligare Internacionalconsidered that the promotion of the culture of economy It is essential to financial well-being because it generates stability and is also the starting point for investment.

“If you get used to save in a regular and disciplined way, you will be able to accumulate a capital which can be used to invest in different Financial assets and generate higher returns,” the financial expert recommended.

Likewise, the specialist pointed out that investing can seem like a difficult task or reserved for experts, but with financial education there appropriate adviceanyone can do it responsibly and profitably.

“He economy it can be a powerful tool to achieve long-term financial goals, such as buying a house, raising children, retiring, among others, and becoming a successful investor,” Fuentes pointed out.

In this sense, the financial expert shared some useful tips to promote the savings culture and create a habit of this practice which, in times of economic uncertainty, allows you to deal with unforeseen events and difficult situations.

• set financial goals

To save effectively, you need to set clear financial goals. These may include save for an emergency fund, for your children’s studies, for retirement, for a trip or to buy a house. Make sure they are realistic and achievable. It is also important to establish a deadline for obtaining them.

a budget helps control your expenses and make sure you don’t spend more than you earn. Start by writing down your monthly income and expenses. Identify what is mandatory and what is optional. Then look for ways to cut down on the unnecessary and put that extra money into savings.

Another way to save money is to smart shopping. Compare prices before buying something and look for offers and discounts. It is always essential to ask yourself if you really need to buy something before you do so. Also avoid impulse purchases. Always think about your financial goals before making a purchase and ask yourself if this will bring you closer or further from your goals.

• Find ways to make more money

There are many ways to do this, such as selling things you no longer need, doing odd jobs or even starting a small business. If you have special skills, such as writing, designing, or programming, you can also consider freelancing in your spare time.

Fixed expenses like rent, utilities, and food make up a big chunk of our monthly budget. However, these are also areas where we can save money.

For example, you can save on your utility bills by using electronics more effective in energy consumption, turn off lights and unplug electronic devices when not in use. Also in cooking food at home instead of eating out or buying food on sale.

Being consistent is the key to achieving your goals economy. Be sure to review your budget and financial goals regularly to make sure you’re on track. If you stray from your budget, don’t be discouraged, just readjust and move on.

• Use artificial intelligence for automatic savings

In the digital world, there are applications that use the artificial intelligence to analyze your spending and make recommendations to save more money. Many applications allow you to configure

Automatic savings, in which a set amount of money is deducted from your bank account each month and deposited into a savings account, can help. It can help you save without having to think about it.

Although there are many financial entities, the most common are probably banks. However, we often overlook all the functions they perform and the benefits they offer to manage the personal finance. In this sense, Scotiabank mentions some advantages of having your savings in a bank.

• Accounts with guaranteed security for your money

Save your money in a bank this is one of the safest ways to take care of it. Banking establishments have deposit insurance which protects your resources. This implies that in the event of the bank’s liquidation, you could recover all or part of the money you deposited, depending on what said insurance covers. In addition, each bank has security systems stringent rules that protect all users’ money and personal information.

• You start building your credit history

When you start using banking products To save your money, you start creating a life of credit, with which you can apply for credit more easily. For example, if you have a savings account, accounts with permanent income and you manage it responsibly, you can apply for a credit card from the bank, with a greater probability that they will grant it to you because of your background.

It is important that you keep in mind that a financial product reflects your economic situation, your income, your borrowing capacity and your financial stability. If you manage your money and your debts correctly and maintain an optimal relationship with your bank, the benefits for you will be innumerable.

• You receive interest on the money you deposit

It is essential that you know that depending on the amount of money you keep in the bank, the type of product you have and the policies of each entity, you can get profitability of what you deposit. It is important that you become well informed about the products that have breakeven percentages and how often you could make a profit.

This is perhaps one of the most important advantages of having your money in a bank, because, colloquially speaking, having it under your mattress will not generate any profitability.

• You benefit from fast and agile access to your resources

Many banks today offer a wide and comprehensive range of options so you can use your money whenever you want. In addition to traditional means, such as ATMs or direct payment deposits, online banking is currently a fundamental tool for enjoying and control your finances from home or wherever you are in a safe, simple and agile way. Digital channels allow you to manage your financial products, make transfers, pay for your utilities, among many other functions, whether from your mobile phone, tablet or computer.

• You gain more control over your finances

For example, when you have a savings account or a checking account, you can have much more control over how your money moves: how much you deposit and how much you withdraw. This will help you know how many resources you have to achieve your goals. financial goals and fulfill your obligations.