1. Get the value of your assets.
Make a personal balance, calculating the amount of your assets and your liabilities, to obtain the total value of your assets. Do this exercise monthly, so if you follow these tips, see how it increases every month.
2. Pay your debts and start saving.
Carry out a thorough analysis of your financial situation, your income and your expenses. See where your money is going, and how you can save. Do not spend the salary increases or bonuses you receive; use them to pay a part of your debts and, when you have liquidated them, destine them to the savings for the fulfillment of your objectives. This is a way to take care of your money.
3. Create your emergency fund.
It is very important to always have money available, equivalent to between three and six months of your current spending, invested in a safe, accessible, liquid account that earns interest above inflation. Use this money only for emergencies and unforeseen events, so you don't have to dip into the money you've saved for other purposes.
4. Invest more now.
The more and sooner you invest, the more benefits you will get, thanks to the magic of compound interest.
5. Be systematic.
Deposit your salary directly into your checking account, and use the electronic advantages offered by some banks to automatically transfer a certain amount each month to your investment account. Take advantage of the Personal Finance business programs to keep a daily record of all your movements, and always have on hand the most relevant data.
6. Educate yourself.
Read articles, books and magazines on Personal Finance, which will give you new ideas about how to be a better saver, how to buy smarter, how to take care of your money and how to be a better investor. Attend as many seminars and talks as you can. Although you may have your own investment advisor, you should always know and understand the basics of investing.
7. Hire an expert.
If you don't have a financial advisor, and think you need one to guide you, find and hire the one who knows how to earn your trust. The ideal advisor should listen to all your wishes, concerns and goals, and design an investment plan for you that guides you on the right path to achieve them. It should help you take care of your money.
8. Diversify your investments.
Diversifying means not putting all your eggs in one basket - this is essential to take care of your money. Invest in different instruments, a little in debt instruments, a little in currency hedging instruments and a little more in equities, but always taking care of your liquidity needs, your performance expectations and your risk profile.
9. Check your credit report.
In Mexico, any natural person can access their Credit Bureau report free of charge. Knowing him and being aware of his credit situation is the first step to improve it.
10. Check your credit cards.
Use them only as a means of payment to take advantage of the free financing they offer, and pay them in full before your deadline. Never use them as a means of credit, unless it is a true emergency. Have only what you need to meet your needs.
11. Estimate your pension.
Make a projection to find out how much you will have in your Afore when you retire, assuming that your salary will remain constant. See how much you have already accumulated and how much you are contributing to the two-month period. Use a real return of 5-6% and consider the commissions on balance or yield that your Afore applies. Do this exercise every time your salary changes.
12. Calculate how much you will need for your retirement.
If you see that it will not reach you with what you will have in your Afore, complement your savings with voluntary contributions, with endowment life insurance or with an independent retirement plan.
13. Know the benefits that your Social Security system gives you.
Social Security systems in Mexico offer many benefits. The most important are, without a doubt, health and maternity insurance, disability payments and the right to a pension in case of total and permanent disability. Find out how many weeks you must contribute to obtain each of the benefits offered by current legislation and try to take advantage of all its benefits.
14. Verify your insurance coverage.
This is another way to take care of your money. Make sure you have your home, health, life, cars and liability adequately insured. If you own a home, get coverage at replacement value; If you rent, insure your personal property.
15. Plan your succession.
Make a will or hire a testamentary trust, to ensure that the fruits of your labor are in the right hands, and ev
Make a personal balance, calculating the amount of your assets and your liabilities, to obtain the total value of your assets. Do this exercise monthly, so if you follow these tips, see how it increases every month.
2. Pay your debts and start saving.
Carry out a thorough analysis of your financial situation, your income and your expenses. See where your money is going, and how you can save. Do not spend the salary increases or bonuses you receive; use them to pay a part of your debts and, when you have liquidated them, destine them to the savings for the fulfillment of your objectives. This is a way to take care of your money.
3. Create your emergency fund.
It is very important to always have money available, equivalent to between three and six months of your current spending, invested in a safe, accessible, liquid account that earns interest above inflation. Use this money only for emergencies and unforeseen events, so you don't have to dip into the money you've saved for other purposes.
4. Invest more now.
The more and sooner you invest, the more benefits you will get, thanks to the magic of compound interest.
5. Be systematic.
Deposit your salary directly into your checking account, and use the electronic advantages offered by some banks to automatically transfer a certain amount each month to your investment account. Take advantage of the Personal Finance business programs to keep a daily record of all your movements, and always have on hand the most relevant data.
6. Educate yourself.
Read articles, books and magazines on Personal Finance, which will give you new ideas about how to be a better saver, how to buy smarter, how to take care of your money and how to be a better investor. Attend as many seminars and talks as you can. Although you may have your own investment advisor, you should always know and understand the basics of investing.
7. Hire an expert.
If you don't have a financial advisor, and think you need one to guide you, find and hire the one who knows how to earn your trust. The ideal advisor should listen to all your wishes, concerns and goals, and design an investment plan for you that guides you on the right path to achieve them. It should help you take care of your money.
8. Diversify your investments.
Diversifying means not putting all your eggs in one basket - this is essential to take care of your money. Invest in different instruments, a little in debt instruments, a little in currency hedging instruments and a little more in equities, but always taking care of your liquidity needs, your performance expectations and your risk profile.
9. Check your credit report.
In Mexico, any natural person can access their Credit Bureau report free of charge. Knowing him and being aware of his credit situation is the first step to improve it.
10. Check your credit cards.
Use them only as a means of payment to take advantage of the free financing they offer, and pay them in full before your deadline. Never use them as a means of credit, unless it is a true emergency. Have only what you need to meet your needs.
11. Estimate your pension.
Make a projection to find out how much you will have in your Afore when you retire, assuming that your salary will remain constant. See how much you have already accumulated and how much you are contributing to the two-month period. Use a real return of 5-6% and consider the commissions on balance or yield that your Afore applies. Do this exercise every time your salary changes.
12. Calculate how much you will need for your retirement.
If you see that it will not reach you with what you will have in your Afore, complement your savings with voluntary contributions, with endowment life insurance or with an independent retirement plan.
13. Know the benefits that your Social Security system gives you.
Social Security systems in Mexico offer many benefits. The most important are, without a doubt, health and maternity insurance, disability payments and the right to a pension in case of total and permanent disability. Find out how many weeks you must contribute to obtain each of the benefits offered by current legislation and try to take advantage of all its benefits.
14. Verify your insurance coverage.
This is another way to take care of your money. Make sure you have your home, health, life, cars and liability adequately insured. If you own a home, get coverage at replacement value; If you rent, insure your personal property.
15. Plan your succession.
Make a will or hire a testamentary trust, to ensure that the fruits of your labor are in the right hands, and ev