1-Define your financial goals and make a budget
What experts usually recommend is to set goals for the month, for the year and for the long term. It is advisable to leave it in writing so that you can review it every time you lose the compass.
Once the objectives have been defined, the next step is to create a budget. It does not necessarily have to be complicated or detailed, but it should include at least fixed expenses grouped into categories, such as rent or mortgage, food, medicine, clothing, education, vehicle, health insurance, debt, entertainment or whatever is most useful to you.
To that is added a category of extra or unforeseen expenses (and if conditions allow, savings). By putting the budget in writing, it is easier to see where you are spending the money and you can detect if you are exceeding yourself in any of those categories.
The most basic thing is to ask yourself: "can I live without this?" and dare to break the inertia by making the necessary cuts.
2- Create savings goals
The amount of what you save is not essential. What matters most is getting into the habit.
"Saving is not saving what is left over from my salary. Many times it requires making certain sacrifices"
3- Invest in what you are willing to lose
The first thing is to take a look at the interest rates in your country to analyze to what extent it is convenient for you to keep the money in the bank or invest it.
In many of the rich economies, rates have reached historically low levels, hovering around 0% or even negative.
The important thing is that you investigate where you are putting your money and not only get carried away by the promise of high profitability.
"Invest in assets that you really understand and with an amount that you are willing to lose.
The other recommendation is to start small and diversify investments, to avoid a total loss when an asset collapses.
And although the higher profitability is tempting, always bear in mind that the higher the profitability you run the more risk. That happens, for example, with cryptocurrencies.
