The word savings came into the vocabulary of the Portuguese and the Europeans, after many years in which the slogan was consumption and credit.
Although we like to save money, we do not like the sacrifices that are required by what the word savings generates love-hate relationships. I knew in this article what savings are, what they serve, how to raise and how to apply.
What is Savings?
Saving or saving money means not spending today to spend in the future. The money is for spending, whether today, tomorrow or in 10 years.
This definition may help you save as we often find that restricting our lives in the present does not make much sense because the future is uncertain and distant. In fact, this preference for short-term living is what justifies the lack of retirement savings or even savings for your emergency fund.
What does it cost?
The money we put aside in savings accounts serves several things. Whoever defines the goal to give to money is its owner. It can be used to cope with unforeseen events (such as a hole in the tire or a trip to the dentist). You can pay for family vacations, pay for retirement or pay for education of your children.
The important thing for those who save is to be aware that we must take a prudent attitude that is rewarded either because we can afford to incur expenses when they appear (gives a very positive feeling of security) or because we receive interest from the application of money in accounts savings or other investment products.
How to Increase Savings?
If you want to save you have to create saving habits, saving regularly. To help you, we suggest that you make savings an automation by setting an automatic transfer from your account to a savings account.
After making savings as automatic (we forget to spare ourselves) we suggest you look hard at your family budget and declare war on waste. Court on bank commissions, negotiate your claims, your insurance and see the daily expenses you can cut without endangering your quality of life.
How to Apply Your Savings?
On the website of Good Finance has numerous articles in section investing that recommend exploited time. Tips for beginners or for more experienced people.
At this stage we will only say that you should apply your savings to a diversified portfolio, taking calculated risks and saving / investing regularly. Financial markets are not bullshit. Think of investing as in applying your money to companies that can create value for their owners.
We do not promise miracles and we do not promise that he will become a millionaire. We defend that the path is made by what we should start the path well equipped and as soon as possible. We also suggest that you mark your free financial consultation where we can analyze where you can cut your costs to start your savings, something that could also go through consolidated credit.