What to do with my money in 2022? Follow these 12 financial recommendations

The 2022 is very close and, although at the current juncture we are still trying to get out of the economic crisis As a result of the pandemic and the political environment, the economy must be one of the priorities in order to achieve our academic, health, etc. goals.

Therefore, Jorge Carrillo Acosta, professor at Pacífico Business School, suggests 12 simple recommendations to start this 2022 taking care of our personal finances in order to improve the family economy.

Keep track of your income and expenses

You must be clear about how much you earn, how you spend and what you spend on, to be able to calculate the surplus or shortage, and from there know how to manage it.

Regarding income, always take into account the net income (after discounts), and not gross income.

Regarding expenses, it is recommended to distinguish between household expenses (rental, light, Water, telephone, cable, internet, etc.), household maintenance expenses (food, cleaning, health, education, etc.), transportation expenses (tickets, taxis, gasoline, etc.), daily “treats” and weekly “treats”.

Reduce your non-essential expenses

Typically, expenses are incurred that are not strictly necessary, either on a daily basis (such as buying candy, soda, or playing the lottery) or on a weekly basis (such as going to the movies, dining at a restaurant, or going out to a mall).

There are even expenses that we could avoid, such as spending on taxis by not getting up earlier and taking public transport.

We must try to control or reduce these types of expenses, in order to have a greater economic capacity.

Plan your purchases

Planning is essential to avoid overspending when making any purchase.

For example, when we go to market The supermarket, It is recommended to draw up a list and respect that list, so as not to acquire something that we do not need.

Also, many families buy products “in spot”, in order to save together at the “wholesale” price.

Another example of proper planning is to previously search the internet for the product that I am going to buy, and in this way find the best value.

Save, even if it’s a few

One of the best financial habits is saving, which you should see as “paying ourselves.”

Saving will allow you to achieve certain goals (such as accumulating for the down 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 our income, and accumulate at least three monthly salaries over time.

Use your credit card wisely

The best way to use the card is under the “direct credit” or “full payment” modality, that is, consume your “day-to-day” expenses with the card and leave it at “zero” on the payment date, since in this way you do not pay interest.

Making a consumption with the card and paying it in installments or with the minimum payments is usually very expensive, unless it is a promotion of “interest-free installments”, where it is convenient for us, as long as it is a large amount.

Endorse only for major purchases

You only have to go into debt when it comes to a consumption that has a significant value, such as an appliance, a large piece of furniture or a trip, whose purchase we cannot pay in full at the end of the month.

In these cases, the best thing is usually a personal loan instead of a credit card, since the rates are lower on average.

If you are going to take out a loan, let it be in the currency in which you receive your income

If, for example, you earn your salary in soles and I get into debt in dollars, I can run the risk that the exchange rate will rise a lot, and the debt will unnecessarily increase. For example, so far in 2021, the dollar is up about 12%.

Let us remember that the dollar is a currency that varies a lot, and its value depends on both external and internal events that occur in the country.

Check that your fees 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.

In financing, always ask for the TCEA

When you take out a loan, normally you only ask about the interest rate, but, in addition to this, financial institutions charge other additional items, which are commissions, insurance and other expenses.

If we include all the charges that are charged to us in a single “package”, the TCEA (Annual Effective Cost Rate) is precisely obtained, which is the real rate that we must compare.

Take care of your “potential debt”

It is not convenient to have many Credit cards or a lot of credit line in these plastics, since this increases your “potential debt”, and when you apply for a mortgage or vehicle loan, you will not be able to access these products unless you cancel some cards or reduce your lines.

It is recommended to have a maximum of 2 credit cards, and with lines no greater than 3 monthly salaries.

Keep a good credit history

You must take care of your credit reputation, punctually complying with your obligations, and not exclusively when it comes to debts with financial institutions, but also with other institutions such as Sunat, the payment of electricity, water, telephone, etc., since all this is reported to the credit bureaus.

If you are misreported, your possibility of obtaining new financing is limited, but you could also lose job opportunities.

Take advantage of months of strong income

If you are on the payroll, you should take advantage of “seasonal” income such as gratification, the CTS or the payment of utilities, in order to reduce your expensive debts or start saving.

The same happens if, for example, you are an entrepreneur and you get higher profits in this Christmas campaign. It is a good opportunity to organize your family finances.