I have interviewed 11 financial advisors in the last quarter of the year.
In every interview, I’ve asked them what they would recommend or What are the things one needs to keep in mind before starting to save or invest for your future.
first thing is always Strengthening the level of financial education, The latter depends on the ability to save and the risk profile of the investor. But nothing that is not within our reach, even in a year when we have seen the highest prices of our lives and high interest rates are here to stay.
“The first step we must take is born out of awareness, is to honestly assess ourselves whether what we spend month after month is on essentials or if we really need them. At that time we will realize That We’re ready to take charge of your finances“, says Sergio Pesquera, economist and business manager at OVB Spain.
these are 4 Essentials for Healthy Financesthat can become Best Financial Resolutions for 2023According to some financial advisors who spoke Business Insider Spain,
Record expenses (it’s not worth knowing ‘more or less’) what you spend each month)
“In order to have good financial health, people must have 2 very clear things: Know how much money comes in your house every month and how much is spent and the purpose of saving (for a trip, a wedding, retirement…)”, says eduardo bolinchesfinancial Analyst.
what is it not worth About this Know what you spend every month. In that expense record, which you can do with a simple Excel template, you’ll need to write down the 0.40 cent of the bread you buy at the neighborhood supermarket every day.
“The easiest way is to take the first step record our expenses, determine how much and how we spend. This means not only writing off our main expenses (rent, mortgage, transportation, food…), but also reducing those other expenses,” says Gabriel Rodríguez, co-founder of Sin Comisión.
To these expenses you will add some Categories to help you add up and see where you’re leaving the most money each month, in the shopping cart subscribed to streamingIn the reeds of the weekend…
make one Record expenses and create a budget from scratch This was my 2022 resolution: I made it happen with an Excel template.
sticking to a budget
“they have to sit Analyze what is being entered and spent per month, Take stock every month and Adjust a budget so you can be sure you have a good plan And that you can actually anticipate an increase in expenses and not reach the end of the month”, recommends Christopher Hanson, CEO of Prestalo.
This is what we are talking about when we refer to a personal budget: Income and expenditure projection for the coming months, how much to save and invest,
“Saving means making a plan and sticking to it. Once we take the first step, create our budget and get our expenses under control, the hardest we may have already achieved“, explains Rodriguez.
Here’s a Free Excel Template for Create a budget for 2023, with a record of expenses and an automatic balance, All you have to do is review how much you’ve spent over the past 3 months and make an estimate for each month of 2023 in the Budget tab.
Get Started Making an Emergency Mattress
With a budget, you can start Adjust what you earn and spend each month to build up a decent emergency cushion. —Essential if you want to have a sound financial position to start investing—. Typically, this emergency fund should represent 3 to 6 months after spending, But the ideal is to save up to 9 months of fixed expenses.
“The solution to the question is to know how much liquidity buffer I have to provide. The Bank of Spain recommends that our contingency buffer allow us to meet normal expenses over a period of 3 to 6 months,” says Pesquera.
“Whoever is starting All you have to do is come up with 9 months of fixed cash expenses, Once you have saved that, you can start taking risks and investing,” advises Unai Ansejo, Co-CEO and Founder, Indexa Capital.
Of course, be careful, because money you don’t need can lose its purchasing power with inflation.
Design a long term investment plan
The best time to start investing was yesterday. The second best moment is today, says Unai Anejo from Indexa Capital and Miguel Camina, CEO and co-founder of MikaCapital.
“The sooner we start investing, the better. It is a misconception that only the super rich invest. Today, Investment is available to anyone And, although we had little money in the beginning, The sooner we start internalizing the routine of saving and investingThe more chances we have to develop our heritage,” Camina insists.
How to get the most for your money? , Summary SBM Personal Finance & Investment
“The strategy that always works well in the long run is Keep putting an amount in your investment plan every month, You are buying low and high, but in the long run you will have it as a good return on your portfolio. don’t try to make Business With the market because it’s very difficult and the only one who pays you back is doing it every month”, says Christopher Hansen, CEO of Prestalo.
Is this the best time to start investing?
2022 has been a bearish year in the financial market and 2023 will be a year to “see them coming”, according to Bolinches. But the worst thing you can do is try to follow the rules time Market’s – To forecast the next movement of the stock market. What? Experts recommend using a financial advisor to assess risk profile and design a tailored investment strategy.