How to balance savings, investment and consumption?

Financial life should be defined by three pillars: Savings, investment and consumption. But in many cases, the accounts are so tight that apparently only enough to comply with the latter. If you understand the importance of each one, you can make certain changes in your budget and customs, to achieve a balance.



consumption credit

This item groups the monthly expenses that we must assume, such as housing, services, cell phone, food and transportation. But also included are those purchases we make during the month, whether it is an outing to eat or to the cinema, such as the acquisition of an appliance, clothes, etc. In our budget it is the item that occupies the most space, but it should not take more than 80% of the salary.



The advice that everyone gives you about how good it is to save is not in vain. The truth is that at a minimum, you should spend 10% of your monthly income on savings. This will not only serve to attend emergencies, but also to fulfill certain personal projects. An ideal way to make your savings pay off is by placing it in a financial institution that pays interest on a monthly basis. There are many options, but the ideal is to compare them all to see which one offers you the best conditions.




Something that few take into account is the importance of investment. If you know how and when to invest, you can increase your income and manage money better. It is not about investing large amounts or taking large risks. Find out what options you have on hand, get advice and allocate a small percentage of your salary to start.

In order to achieve a balance, it is necessary to evaluate the current state of your budget and start eliminating those things that are undermining your stability and closing the portfolio against unforeseen expenses until you are in a better situation.

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