6 Most Common Mistakes Consumers Make When Saving

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6 Most Common Mistakes Consumers Make When Saving

6 Most Common Mistakes Consumers Make When Saving

Seasons of heavy spending are coming. Christmas and the end of the year tend to become the last impulse for commerce in Colombia and having responsible consumption is vital to avoid making mistakes when saving and avoiding starting short on money in 2022.

This is why it is necessary to identify which are the common mistakes that consumers make when saving.

Knowing how to allocate enough money to necessary and unnecessary expenses is important so that this Christmas season can be enjoyed with financial peace of mind.

Knowing how to save in a country like Colombia is more important when, according to figures from the National Savings Fund, by 2018 only 12% of Colombians were saving formally (with special emphasis on higher-income households), a proportion that, In 2021, it became evident that only one in 10 Colombians had some type of savings, according to data from the consulting firm Kan tar.

 

These are six common mistakes when it comes to saving

  1. Not Having Clear Accounts

Not having a judicious budget of the amount of money you have and the number of accounts payable, or expenses to be made, is usually one of the most common mistakes when saving.

Being clear about how much money you have and what the inflatable needs are when paying bills is vital.

The idea then is to establish a budget, including fixed and unforeseen expenses, and from there to define how much of what is received in a month can be saved or used for entertainment expenses.

It is very important that this budget is made, as far as possible, with the money that is owned and not with the money that will be close to arriving.

  1. Learn To Pay Your Debts

Having a clear schedule and payment plan about the debts that you have, and knowing how to allocate the necessary percentage to meet those obligations, will be key to understanding how much money should be used for savings.

In long-term loan payments, whenever possible, you should always pay a little more to the monthly installment, either to reduce the principal debt or the interest amount.

  1. Beware Of Excess Credits
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Another common mistake that prevents savings is deferring paying recurring expenses through the use of credit cards.

Taking on future debt is the biggest stick in the wheel to generate constant savings.

Hence, the most important advice is that, if a credit card is going to be used to pay the market for the month, make this type of transaction at a single installment, since the interest paid can be the vanishing point, whereby the opportunity to save is slipping away.

  1. Beware of Ant Expenses

Lack of planning leads to small recurring expenses becoming another mistake when it comes to saving.

These ant expenses can be: payments for music or video platforms lower than even $12,000 per month, payments for video game services, transportation through applications also using the credit card, sweets, meals outside the home, among others.

It is necessary to be precise about the expenses that are not a concern due to their price, but when added together they become a weighty item, it is substantial when thinking about savings.

  1. Savings Must Be Made Efficient

Another common mistake is to think that saving is about accumulating money and leaving it intact in a bank account, in a piggy bank or under the mattress.

Saving without the purpose of profitability becomes the simple accumulation of money that, over time, can lose value.

Hence, making savings efficient is substantial to take advantage of the accumulated money.

A CDT, a short-term investment, an open investment fund or even opening a voluntary pension fund can be some of the solutions.

In this last point, it must be taken into account, depending on the option, a minimum of money or temporary permanence is required.

  1. Increase Sources Of Income

Finally, the need to save for a personal or professional project should lead to evaluating the possibility of increasing the income received monthly.

This includes, if you have the time and capacity, the option of doing extra work.

But you can also trade goods that are no longer used and still have a productive life: computers, televisions, bicycles, or any other type of non-necessary durable good.

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