Save or invest What is the best option for my future?

If I want to improve personal finances: Do I save or invest? Both go hand in hand and they are the two most accessible ways to have more money.

For Carlos Galán Rubio, author of the book “Become independent from Dad State” Both are key, but “we must not forget something very simple: To invest you have to save. And to save first you have to enter and spend less”.

This is also considered by the financial coach Andrés Mórtola, who indicates that you must first get out of debt, then create an emergency fund (save 3-6 months of your monthly budget) and once you exceed those amounts you can invest, but there are You have to spend some time learning how to manage investments.

There will be those who can start learning immediately because they have few financial obligations (the youngest) and those who will need a previous safety cushion before launching to make their money profitable.

How to generate equity?

Mórtola explains that a positive flow in finances must be generated, that is to say that expenses do not exceed income and save that surplus and then invest itthere you are creating heritage directly.

In which markets is it recommended to invest in Ecuador?

Despite the problems that have arisen, confidence in the Ecuadorian stock market is something that should be maintained. “Investment funds are a great alternative. But the main thing is not to forget to continue investing in our talents, currently online businesses worldwide are providing additional passive income and this can only be achieved with preparation and investment in ourselves”, highlights Mórtola.

The Mercapital brokerage house recommends that for a better management of your finances, when you perceive that you have excess of your salary, you receive a bonus, profits from the company, or any additional income to your normal monthly income. Therefore, you can follow the following steps:

• Debts: Analyze how much you have left to pay of a debt, make an advance payment or if you can pay everything you have left, so you will save all those future interests.
• Expenses: Make a list of the additional expenses that you must incur in the short term, at the same time, check what expenses you are paying every month and if you can cut back by considering them unnecessary expenses.
• Saving: Try to do the two previous steps thinking of leaving at least 20% free of that additional income, and add this leftover to your savings.
• To invest: If you have savings that do not produce interest or the interest they pay you is very low, it is almost like having them in the ‘colchonbank’. Create an investment plan in different assets, some that are very liquid and can be used quickly for an emergency, or you can invest in long-term assets that generate higher returns. (I)