A kind of diet to avoid unnecessary expenses is an option given by financial institutions to better manage money and set goals for 2022
Do not buy anything that is not necessary or use the cards for 21 days. It is not impossible and it is a method to improve personal finances after the holiday, gift and debt season. This idea was born in the United States and is now also spreading in Ecuador, which in the midst of the pandemic has seen an increase in the level of savings that has continued in 2021.
“Neither intermittent fasting nor keto diet! Perhaps what is going to do you good right now is a financial fast that helps you heal and stabilize your finances once and for all. ” Thus, Banco Pichincha invites its clients to join this challenge to learn to spend with conscience, to know clearly what the household needs are, to better control the temptations of offers and to see the ability to save.
How and what expenses to reduce to adjust the salary to the crisis and start 2021 with the accounts in order
The personal finance columnist for the Washington Post Michelle Singletary creó The 21-Day Financial Fast: Your Path to Financial Peace and Freedom or 21-day financial fast for peace and financial freedom. During that time, you should only assume expenses for survival and put aside purchases by desire. It is like a diet and it has four golden rules.
1. Do it for 21 days. The first thing is to respect the time of fasting, and this is based on the idea that in three weeks a person can integrate a new habit into their routine. “If during the 21 days you break any of the rules, then the best thing is that you start everything from scratch and that this motivates you to do better the next time”, is one of the tips that the bank gives among its advice to set goals for meet in 2022 and that are part of the blog on your website.
2. Buy only if necessary. Identify the essential expenses for living (housing, food, medical care and medicines, basic services, transportation and cleaning) and those that are only wishes or whims to put aside for the duration of the fast.
3. Pay in cash those purchases of survival in those 21 days is the third key to in this way visualize the money that is spent and think twice before wanting to make an impulse purchase. “Watching your wallet bills fly is a powerful way to make you regret it! And you will develop much more self-control ”. After three weeks you can use credit and debit cards again if there is the security of being much more aware of expenses.
4. Keep a journal of expenses to record the purchases made and their respective amounts. That way you will be able to know how the money is used and how much is saved each day. Everything should be noted.
And it is that financial institutions at this time give suggestions to customers on the management of their finances. The Banco Bolivariano prepared a checklist financial end of the year:
- Review insurance policies and update them if necessary.
- Review how your investments have grown in the last year.
- Review your budget and come up with a plan for the coming year.
- Review your emergency fund or create one if you haven’t already.
- Review your debts and consider steps to reduce them in the following year.
These councils have had a greater reception after the pandemic, due to the need to protect themselves against crises. Thus “deposits maintain a growing trend during this year,” indicates the Association of Private Banks of Ecuador (Asobanca). There is 11.2% more money deposited than a year ago, it is an additional $ 4,001 million that entered the system as deposits.
Leaving term savings increases the interest received from $ 3 to $ 30 per month, if the amount is high
In total there are $ 39,654 million of deposits until November and 37% are in term ($ 14,857 million). Those who opt for this form of savings prefer to leave them between 91 and 181 days, this year they were the ones that experienced the most growth in their participation, from 22% to 25%. Monetary deposits (checking accounts) are 32% and savings, 26%.
52 Week Challenge: How to Save for $ 1,378 in One Year
The year has 52 weeks and this challenge consists of saving one dollar the first week, two dollars the second week, three the third and thus adding a dollar more each week, in the last week it should be 52 dollars and with that the year will close with $ 1,378 in savings. At first it is easy to separate that money, but in the middle of the challenge – in June – they are already around $ 100 a month that must be allocated to savings. A recommendation is to do it in a sealed piggy bank so as not to use that money if an unforeseen event occurs, or to do it as a couple to reach the end.
Kakebo method, Japanese savings system
This is a method that has become popular in recent years, but it is the simple way that has been used to keep track of money, it consists of writing down in a diary or notebook all income and expenses, day by day, and analyzing it first monthly and then annually. By writing down all the money that is received: salaries, bonuses, overtime … and subtracting expenses, every penny is better controlled and the balance that goes to savings is obtained. You must be consistent in keeping your notes every day.
How to take care of money
The suggested thing is to save 10% of the income because this way in a year it is possible to accumulate a salary. A golden rule is never to defer food purchases, because that is how credit card debts accumulate and are payments that are dragged for products that are consumed immediately, and another mistake is to go to the supermarket without a list no clear budget. (I)
Paul is a talented author and journalist with a passion for entertainment and general news. He currently works as a writer at the 247 News Agency, where he has established herself as a respected voice in the industry.
