How to manage debts and improve my savings in 2023?

On this New Year’s Eve, many people prepare cabals and rituals to achieve abundance in 2023. But it is also important to review some tips to improve the family economy and personal finances. These recommendations will help you maintain a good credit profile and avoid bad ratings on portals such as Infocorp and the SBS report. Likewise, you will be able to make better use of your income and grow your savings. Next, review the recommendations of Jorge Carrillo Acosta, a professor at the Pacífico Business School:

Keep track of your income and expenses

You must be clear about how much you earn, how much you spend and what you spend on in order to calculate your surplus or shortfall, and from there, know how to manage it. When it comes to income, always consider net income (after deductions) and not gross income.

Regarding the billsit is recommended to distinguish between household expenses (rent, electricity, water, telephone, cable, internet, etc.), household maintenance expenses (food, cleaning, health, education, etc.), transportation expenses (tickets, taxis, gasoline, etc.), daily ‘gustitos’ and weekly ‘gustitos’.

Plan your purchases

Planning is essential so as not to overspend when making any purchase. For example, when you go to the market or supermarket you must make a list and respect that list so as not to buy something you don’t need.

Also, many families buy products in large quantities in order to save collectively on the wholesale price. Another example of a proper planning It is to search previously on the internet for the product that you are going to buy and in this way find the best value.

Save, even a few

One of the best financial habits is saving, which you should see as “paying yourself”. The saving It allows you to achieve certain goals (such as accumulating for the initial payment of an apartment or a car), as well as face some unforeseen events (family emergencies, accidents, etc.). In this sense, the ideal is to save at least 10% of your income and accumulate at least three monthly salaries over time.

Use your credit card wisely

The best way to use the credit card is under the modality of “direct credit” either “full payment”; that is, you consume your day-to-day expenses with the card and leave it at “zero” (you pay everything) when the payment date is over. In this way, interest is not generated.

Make a consumption with the credit card And paying it in installments or with the minimum payments is usually very expensive, unless it is an “interest-free installment” promotion, in which it is convenient for you, as long as it is a large amount.

Borrow only for major purchases

You should only go into debt when it comes to a consumption that has an important value, such as an appliance, a large piece of furniture or a trip, the purchase of which you cannot pay in full at the end of the month. In these cases, it is best to personal loan instead of a credit cardsince the rates are lower on average.

If, for example, you earn your salary in soles and borrow in dollars, you may run the risk of the exchange rate going up a lot and unnecessarily increasing your debt. It is better to take the credit in the same currency with which you receive your income.

Check that your installments do not exceed a third of your income

If your salary or net income is, for example, S/1,500 per month, what you allocate to pay the installments of all your debts together (credit cards, personal loans, vehicle credit, etc.) should not be more than S/ 500. Otherwise, you could fall into over-indebtedness.