2023 was the year for me safety mattress.
In January, I decided to set aside some of my savings for the completion the minimum that experts recommend having in an emergency fund: three months of income (or fixed expenses, depending on each person’s needs). The goal was that in 2024 my New Year’s resolution should have started invest excess savings that it will not go into the emergency fund.
I have scheduled an automatic transfer of mine current account to paid savings account. But I had to retract that airbag a few times during the year.
At the end of 2023I’m not very far from the goal, but of course I didn’t get it.
So I asked inside Business Insider Spain By six financial experts what to do when the goal is not met and how to plan a successful New Year’s financial resolution.
Define a clear (and realistic) New Year’s resolution
“It’s good to set a goal now. Many don’t and even hope that someone else will solve it in the future. The fact that Set these goals that will give you more freedom, that in itself is very good. But you have to reflect and analyze what happened”, suggests Unai Ansejo, the company’s co-founder and CEO Capital Index.
Elizabeth Wakefield, independent financial advisorbelieves that one of the main reasons people don’t keep their New Year’s resolutions is level of financial education.
“If someone can’t achieve your financial goals it is due to lack fixed habitsadequate education and an effective system. The financial habits are necessary to achieve our compliance financial goals”, answers the expert to the question Business Insider Spain.
“Inappropriate practices such as not having a personal budgetirregular savings due to lack of priority or falling into unnecessary debt can be compelling reasons to achieve this,” adds Wakefield.
Control your spending to save more this year
As a result, this knowledge or necessary planning get a regular savings goal, expenditure in budgets people who do not control their finances can easily get out of control. Ansejo insists that each person must analyze and think about why he did not achieve the goal. Was it too ambitious a goal (or not)?
“I would tell him to think and learn from what happened. For example, I love to measure and review the goal. I also find out if there are things along the way that could not be done otherwise,” he adds.
Luis Martín, partner of the company Abencys, agrees with Ansejo. For Martín, it’s an obvious question analysis of interests, expenditures and operations.
“People need to realize what their options are and inform themselves. And believe in their own safety. It is also true that there are people who are more afraid and move around with more or less security measures,” defends the expert.
“People who have not reached their financial goal by 2023 should reassess and adjust their financial plan, revising the revenue structure and emphasizing expenditure control”, Add Fernando Castello Sirventeconomist, professor and researcher at the Polytechnic University of Valencia.
“In situations like the current one, taking responsibility is usually delayed by making debt and investment decisions whose effects are seen in the medium term,” he warns.
Analyze the economic context
“You may have spent more than you originally intended, or Maybe interest rates have gone up and the mortgage now costs more money. and He failed to realize the savings he planned to earn”, points out the director of Indexa Capital. It may also have helped a loved one through a time of crisis, leaving them with less liquidity month after month than expected…
“Frugality can be a good guide to action in those domestic economies that did not consider implementing a regular, planned and recurring control of your income and expenses, evaluation of the previous estimate and subsequent deviations. After all, as the Swedish proverb says: ‘he who spends on what he does not need robs himself’,” adds Professor Castelló Sirvent.
Financial advisors also agree that lack of knowledge of basic concepts —budget, types of investments, interest rates and risk management for example – can cause people to make harmful financial decisions.
“My main recommendation is: prioritize your finances basically through two options: become financially educated or have a financial advisor to lead us. By gaining solid financial knowledge, we can make better decisions with our money, which in turn will lead to a better quality of life now and in the future,” he suggests.
Use tools to help you save (or invest)
Along the way, he comments on a question posed by this medium EFPA SpainLuis Manuel Donaire, Territorial Delegate of the Committee for Member Services in Extremadura, people can rely on different tools to help you build a savings habit and hence have a healthier financial situation.
“Consistency is, in my opinion, the eighth wonder—along with compound interest—. Regular contributions at the beginning of the month are a very important help for people who cannot save. Even if today there are other methods such as rounding up purchasesDonaire says.
“But always save in a separate account or product. Products with limited liquidity are also a good alternative,” he adds.
Make savings profitable
In the same spirit Jordi Bellobí, partner of the company RSMhead of the financial advisory services department, recommends keep in a current account for at least three to four months. Then, convert to a product that has some reward —no matter how small it may be —.
“That’s very peace of mind. Whether you have it in your checking account without paying it, or you have it in an easy or highly liquid asset, you can have it in a refundable deposit or three months’ worth of cash.” account. Better a three-month T-bill than nothing. This is how you make a profit” he concludes.