” If you add little by little and do it often, it will soon become a lot”, – phrase of the Greek poet Hesiod.
The last few months we have lived have exposed us to various learnings, and one of them is the importance of “saving bread for May”. Having the ability and discipline of saving allows people to achieve financial and personal goals of a higher level and also, Be prepared for unexpected situations.
It is possible that we have not analyzed this topic in depth, but saving allows us to do such simple things in a healthy way for our pocket, for example: buy a new computer, fix our vehicle in case of any unforeseen event; and other more complex situations: treating an illness or making purchases of significant goods, such as the first home or changing vehicles.
Likewise, saving allows us to achieve goals and desires in the long term, such as making the trip of our dreams, paying for the children’s university or putting together the retirement plan according to our tastes.
Definitely, saving sometimes sounds simple, but in practice, achieving discipline has some challenges that we must face. That is why we share five simple steps so that you can effectively achieve your savings goal:
- Define your income . If you’re salaried and it’s your only income, it’s easy, but consider things like your Christmas salary, bonuses, vacation bonuses and other income that may apply. If you are independent, you should consider your estimates for each month, trying to be as close to reality as possible.
- Document your expenses. Until we see our detailed expenses month by month, we do not fully understand what we allocate the money to and where it escapes us. Many times we have small expenses that we do not realize on a day-to-day basis, but that at the end of the month are significant.
- Set a budget. Once you know your expenses, you can set a budget that meets your goals and, above all, your capacity. You must work honestly on this point so that you can achieve your goals.
- Define your savings plan: Within your budget, your savings goal is almost non-negotiable. Try to adhere to your plan as much as possible and make sure you achieve your goal month after month.
- Check compliance. Every month review how you met your budget, make the necessary adjustments until you can achieve it easily and that your budget is a consultation and reference tool for you when you think about making your expenses.
The stock market of the Dominican Republic grows every day and expands its universe of options to make investments. All Dominicans have the opportunity to see their investment specialists as their allies to create and develop the culture of savings. What better way to save than when you get the best returns on the market?
With minimal outlays, you can start on your way to potentiate your savings and grow your personal wealth. Once you start building your personal wealth, you will see how easily your savings can grow over time through investments.
As you gain experience in the area, you will be able to make higher-yielding investments that offer your savings the maximum opportunity for growth, always in accordance with your investor profile.
If you haven’t started saving, this is your time. Remember, for your big dreams and goals to come true, you need to start building them now and keep in mind Benjamin Franklin’s phrase: “A penny saved is a penny earned”.