December is a key month when it comes to personal finances. It is the season of many expenses due to Christmas gifts, New Year’s Eve dinner and even the New Year holiday, however, workers also receive some extra income, such as Christmas bonus, annual rewards or higher profits (in some Cases due to increased sales of the business).
The end of the year is a good time to rethink the path of your financial situation, repair your mistakes, and set new financial goals for next year, we show you some options to organize your economy.
It is an extra money that you do not regularly count on, so you should use it wisely. We suggest that you prioritize your outstanding debts as payment of your debts, you can also take out insurance to have greater financial security and/or anticipate the payments you are going to make next year.
2. Eliminate your debts
Accelerating the payment of your debts involves making a budget (so you can attack the root problem), the first step is to identify how you distribute your income to meet your basic needs, as well as your debts, and you must order the latter depending on the time you spend It will take time to leave them and make a list, so you can know your ability to pay (difference between income and expenses), this amount allocates a greater amount for the payment of the debt that you leave behind in the shortest time.
Apply the previous strategy for the rest of your debts, thus speeding up your payment, do not deviate from the goal that is to eliminate debts. Remember that it is essential to make your budget, based on how much you can spend and not how much you want to spend, this will avoid making impulsive and unnecessary expenses that will cause you knew debts for next year.
It is a discipline that for many may seem complicated, but if you consider the benefits that it entails, you will know that it is worth doing. One of the main fruits of saving is that it will allow you to make expenses that you probably cannot afford with your regular salary. Saving is a habit you can adopt; However, saving your resources at home is not the best option as it involves a risk, such as losing them. Saving in batches also carries a risk, as the organizer might not give you your resources. It is best to choose a financial instrument in an authorized institution such as the Banks, Cooperative Societies of Savings and Loans (SOAPS) and Popular Financial Societies (SOFIPOS). Remember that to know which Financial Institution offers this type of products, you can visit the Financial Institutions Bureau; In which you can find the evaluation of the products: savings account, payroll account, and demand deposit. So you can decide better, with which Financial Institution you can contract any of these products.
One way to generate surpluses, to end the year well, is to invest; But for this, you need to have previous savings, since it is fundamental that you do not commit the resources that you are going to need or that you already have destined to realize some expense. When investing considers the performance, the risk, the term and your investor profile that includes objectives, investment term, age, and knowledge or investment experience. Know your investor profile per your objectives:
Conservative: the horizon of investment is generally short, so you should try to take the lowest risk possible, in addition, to preferring stable investments, but with lower yields.
Moderate: the horizon of investment is medium, so the yields are good, but without taking many risks, besides you are interested in the security in your investment.
Aggressive: the investment horizon is long, so you are looking for higher yields, And you are even willing to take the risk as necessary.
If you’re just going to start investing, ideally you should start with low-risk instruments and gradually go for more with more sophisticated instruments that give you higher returns.
Where to start?
Some instruments you can start with are the CETES , these are government investment instruments, with which at the end of the term you receive a return, which is the difference between the face value and the price you paid when buying them; You can also acquire them with terms of 28, 91, 182 and 364 days and renew your recruitment.
There are also the Federal Government Development Bonds (BONDS), which are government investment instruments, but unlike CETE, BONDS pay interest every 28 or 91 days; As the owner of the BONDE you receive these interests (at the end of the indicated periods) and the difference between the nominal value (100 pesos) and the price you paid when buying it. You can also purchase them within 1, 3 and 5 years.
Also, the Promissory Notes with Liquid Marketable Income (PRLV) are short-term securities issued by various financial institutions and at the time of their contracting, a rate of return is established, with a term of 7, 28, 91, 180 and up to 360 days. In the Bureau of Financial Entities, you can find the evaluation of this product, in the sectors: Banks, SOFIPOS and SOAPS. In total, 56 financial institutions (January-June 2015), of which only one institution failed, Alta Financial Services (SOFIPO); While five banks obtained a rating of 10.
If you already have investment experience, you can try with the Investment Funds (also known as Investment Companies) that are institutions that bring together the savings of several people who, when participating, become shareholders of that company. An investment fund seeks to invest in different instruments to reduce risk and are classified: debt, equity, and capital. The most common liquidity in the funds is daily, although there are also 48 and 72 hours, weekly and monthly.
In all investment funds there is an associated risk, generally depending on the volatility (ie the variance or the positive and negative changes in the price of the securities of the investment fund) and the rating they have (a measure for Assess the risks to which the debt instruments are exposed and which is issued by a rating agency outside the investment fund).
In the Financial Institutions Bureau, you can also find which are the investment companies that are operating in the country, so as not to be surprised by some apocryphal institution.
Shital regularly contributes on current health articles and healthy living ideas to health blogs around the web. When she’s not busy working with the jobs, you will find her undertaking many of her own health-related topics and healthy living ideas! She has a lot of dreams. She works hard to fulfill her dreams. She loves to share her ideas, tricks, tips and information by blogging. She also works at Creativejasmin.com, a company that committed to helping businesses with online marketing.