Finance specialists recommend to all people save 10-20% of your income either with a fixed objective such as travel, studies or others, but also as an emergency fund such as losing your job, getting sick or some need present at the last minute.
However, saving is not an easy task, especially when the economic situation presents us with high prices that are no longer in line with our income, added to this is the lack of financial education of people who do not know how to distinguish the true needs and reduce those ” ant expenses”, which can represent a good part of money if we put them all together.
“It is recommended to reserve at least 10% of your salarybut the percentage can be higher if ant expenses are avoided, that is, small daily amounts outside the budget, “says the economist José Luis Torres, Regional Manager of the Selva area of Caja Piura.
How much should you save according to your age?
The expert also advises using this savings guide according to age ranges:
- Under 25 years: It is recommended to save at least 10% of your income, however the best savers in this segment save up to 30% of what they earn.
- People from 25 to 35 years old: They should reserve 17% of their salary, but the most disciplined can keep up to half of their income.
- People from 35 to 40 years old: The minimum recommended savings percentage is reduced to 15%. “Although income tends to rise as time goes by, fixed expenses such as mortgage payments or children’s school fees usually appear as expenses after this age,” explains Torres.
- From 41 to 55 years: It is the most austere group with its expenses, it is estimated that it reserves 55% of its income.
Why save?
We have often heard the phrases: “There is only one life”, and we use it to justify some extra expenses, but trips, restaurants, and other tastes and needs demand money, therefore, José Torres recommended setting a goal for save that generates motivation..
“Plan savings in the short, medium and long term. Once you achieve a purpose, you will want to go for more,” she emphasizes.
Avoiding unnecessary purchases requires discipline, which is why Torres suggests adding up the ant expenses that are made daily to realize their impact on the monthly budget. “If you have this data and a clear personal or family budget, you will better control your money,” the spokesperson says.
Follow these tricks to learn how to save
If there is no saving habit and you consider that your list of expenses is too long, Torres also suggests some techniques to organize your finances. “An excellent practice is to pay yourself first” by Robert Kiyosaki (author of Rich Dad Poor Dad). Right after receiving your salary, you must allocate part of your income to your savings account,” says Torres.
Another very effective and popular technique in the United States for those who have never saved before or find it very difficult to do so, is the “52 week challenge”. It consists of the gradual and growing increase in savings.
We start by saving S / 1 during the first week of the challenge, in the second week we reserve S/2 and so on. The idea is that you save the same amount of the corresponding week number. For example, in week 25, you will save 25 soles and in week 52, you will save 52 soles. At the end of week 52 you will have saved the sum of S/1,378. If you apply the same technique and start with S/10 soles, you will complete the challenge with S/13,780, explains the Caja Piura expert.
The fact that the savings grow from a minimum amount to a maximum of 52 soles, will make you perceive it as something easy to achieve. You will be able to maintain the rhythm and not leave it halfway. We know that taking the first step to start a new habit is always the hardest, but with this technique there are no excuses.