You could say that we all have the interest to save, however, at the end of the month we do not know where our money was and we did not save the amounts we wanted.
Saving without a doubt is a difficult challenge, since low wages have not increased in the same way as the prices of products and services have. But make it a difficult challenge, it does not make it impossible. There are many expenses that we can cut, without our lifestyle changing too much, for example: spending ant. Do you know how much money is going to you in those small and unnecessary expenses that you do not give importance to but that, added, do affect your portfolio?
Ant expenses are derived from unnecessary purchases that go unnoticed for different reasons. Normally, we give greater importance to the most significant purchases and expenses, than to the small expenses, because when disbursing 20 or 30 pesos, we do not believe that it affects our economy, but what happens if we add up all those expenses each month?
They represent 12% of our income, according to the Condusef. The 12%! It is more than 10% that it is recommended to allocate food or education expenses monthly. At the end of the month, the ant expenditure turns out to be significant.
What unnecessary expenses do Mexicans have?
Some of them are coffee, sweets, cookies, chips, cigars, beers, bottles of water, tips, commissions in shops, etc. So, assuming that a person has an income of $ 10,000 per month, these ant expenses would represent about $ 1,200 per month and about $ 14,400 per year.
Now let’s think how much do we save for an unforeseen event or for an emergency fund? How much money are we saving for our retirement? How much money do we need to meet personal goals? If the answer is very little or nothing, then it is time to find what our ant expenses are and cut them out or eliminate them.
Find your savings opportunities
The expenses ant are different for each person, that is to say, there are small expenses that while for some they are unnecessary, for others yes they influence in their way of life. Therefore, it is up to each person to find out what are the small and unnecessary expenses that we do not give importance to, but which, added together, are preventing us from achieving bigger things.
There are expenses that are more complicated to eliminate, but you can find ways to reduce them. An example is subscriptions to services such as Netflix or Spotify. The monthly subscription for a person of these services costs $ 109 and $ 99 per month, respectively. This represents an annual expense of $ 2,496. If you hire the Netflix Premium Plan for four screens, which costs $ 199 per month and you share it with three other people, and you hire Spotify for yourself and up to 5 friends or relatives, which costs $ 149 per month; your annual expense would be $ 895. You would be saving $ 1,601 a year!
Sharing some expenses is a great way to save money while still using certain products or services.
It is important to know these data to organize and plan your personal finances. In just 4 steps you can start converting your ant expenses into savings and a good idea is to rely on fintech, or financial technologies, both to make a budget and to make your money work through investments.
4 steps to reduce your ant spending and increase your savings
1. Identify the total amount of money you receive per month and establish the essential needs.
For this, in Finerio we recommend the 50/30/20 rule.
The rule says that you must allocate 50% of your income to basic needs such as rent, food, services and transportation. 30% can be for lifestyle and entertainment expenses. 20% should be used for savings. In this way, you will see that it is easier to organize and plan your expenses with the money you have available. If you have spare, always save it.
2. Make a budget and implement the 50/20/30 rule.
Calculate everything you spend in the month, the more specific your budget, the better because you will avoid unnecessary expenses. Having a budget does not mean quitting going out and eating the same thing every day. It means establishing your priorities and adjusting some expenses according to your needs.
We know that sometimes it is tedious to make a budget, but with Finerio you can do it in a simple way and track your expenses in an automated way. You can link your bank cards and have all your information in the same place.
3. Take courses or research personal finance.
Financial education is essential to achieve much with little, if necessary. An education of this type will allow you to choose the financial instruments appropriate to your needs.
It is important that you inform yourself about the investment instruments that exist in the market, so that you choose the most suitable one for you and you can grow the money you save by eliminating your ant spending.
Once you have organized your expenses and know the financial instruments that exist to improve your finances, start investing. Neither should you be an expert, opening an investment account is as simple as opening a savings account. You just have to inform yourself to make the best decision.
Currently, digital investment platforms have more accessible processes than those of a bank and generate better returns. You can start investing from $ 100. That’s right, that money that you will save on sharing Netflix and Spotify, you can put it to work now.
Finally, order your financial priorities and create a budget based on the Fintech. Say goodbye to unnecessary expenses and you can save even more than $ 15,000 a year, if you take advantage of the investment instruments. With it you will fulfill goals that you thought were difficult to reach. You just need a little effort and be constant. Leave us your comments and tell us what ant spending you can eliminate from today?