The world economic crisis is a reality that governments around the globe are facing, Colombia is not exempt from this situation. Although there are countries with stable economies that have taken some initiatives to combat the effects of the recession, there are nations, such as Colombia, that have less developed economies, which means that the impacts of inflation are felt more strongly by citizens. on foot.
According to the Government’s Economic Development Observatory, the cost of living grew by 6.31% compared to January 2022, a worrying figure. There are products from the basic family basket that even rose by 109%, in the case of some tubers, among other foods. In special situations like this, the real question is: how can I make the money work, is this really possible?
Now, it is true that there is little that citizens can do to counteract the crisis at the country level, but there are small actions that allow them to take care of their pockets and even save.
The finances
It is very important that Colombians understand the importance of taking care of their finances while the country recovers from the current crisis.
According to Marco Arenas, regional manager of Liberty Seguros Colombia, “in the first months of the year, when in most cases there is an additional expense for the pocket, it would be very useful to be able to generate savings in the personal and family portfolio , and thus counteract economic adversities, in which the well-being of you and your loved ones prevail. From Liberty we promote an initiative called Seguro Aprendo, to guide users regarding their expenses, savings, finances and insurance”.
For this reason, financial specialists share some tips for calculating spending and saving capacity during this time:
1.- Monitor ant expenses
Ant expenses are those small sums of money that are spent on everyday pleasures or on things that are not used. The complex thing is that, when dealing with low sums of money, the expense generally goes unnoticed. Inside and outside the home you have surely felt the desire to buy some kind of candy, chocolate or something else, such as a hair treatment that you will not apply, among others. This represents a small expense that added little by little becomes a bigger one. We recommend choosing a monthly budget for these ant expenses and start adding up the small purchases, in such a way that this budget leads to a spending limit.
2.- Avoid unnecessary purchases
Sometimes, free time and constant access to devices such as computers and cell phones can lead to buying unnecessary items on the internet. Promotions, applications with discounts and even advertising while working or studying, can result in filling the quota of the credit card in online or home purchases. These expenses, which are not reflected in the finances immediately, can become a problem at the end of the month.
If you are teleworking and the level of expenses has dropped, you can take advantage of this moment to save, especially given the job uncertainty that has been generated since the start of the pandemicavoid entering online shopping pages and unlinking credit cards from cell phone applications.
3.- Save transport costs
When you go to work, university, school or another place, whether by car or public transport, a daily expense is generated in tickets or gasoline, but if the person is working at home or taking virtual classes, this recommendation is of great interest :THave a table of fixed monthly transport expenses and take a percentage of this for savings, assuming that you were actually commuting to work normally.
For example, when using a vehicle there is a fuel consumption that, depending on the number of kilometers, varies in price; We could say that if this weekly expense were $35,000, for four weeks, there would be a total of $140,000. The ideal would be to save 100%; however, the savings percentage can be adjusted based on current expenses.
4.- Make a list of monthly expenses
It is essential to make a list of monthly expenses – transportation, public services, food, among others – in order to keep track of what is invested month by month in essentials, in order to review what is earned and can be get to save
Writing down the expenses that occur on a day-to-day basis will allow, at the end of the month, to take stock of the money that is being earned, as well as the money that is being spent. The important thing is to not spend more than what you earn, that is the purpose.
5.- Prepare food at home
Back to normality, it is usual to go out with co-workers, friends or family to eat in new places without measure, generating additional expenses; however, cooking at home measures expenses more accurately. It is important that when going to the supermarket, the products are chosen according to the budget and needs. A good recommendation for not buying more is to make a list of daily menus for the week, that way when you buy in the supermarket the necessary products will be identified.
The most important thing about personal finance is the preparation and willingness to follow it. With these simple tips, you will be more prepared and aware when it comes to organizing your finances, making smart purchases, and making the best economic decisions to take 2023 off on the right foot.
6.- Suspend unused services
Laura Peña, an economist at BBVA Research, notes that “it is urgent that the Government present alternatives such as a subsidy to food producers and try to reduce intermediation. At BBVA Research, we anticipate that the high levels of inflation will continue to be transmitted, especially during the first half of 2023, followed by a moderation of the data, which may close the year at close to 8%”.
The expert recommends that families control spending: “Ant spending must be controlled. Moderating smaller purchases can be a great relief, because these represent one of the largest expenses that end up affecting financial capacity at the end of the month”.
It also indicates that “services that are not used must be identified. Knowing if resources are being lost due to unused subscriptions and/or services can be of great help to many people who have purchased passes for gyms, streaming services, magazines, apps, bank accounts, among others, since these generate unnecessary monetary flow of which trace is lost”.
7.- Government must generate employment
The president of the Colombian American Chamber of Commerce, AmCham Colombia, María Claudia Lacouture, maintains that among the government’s measures “it is important to reinforce policies for the generation of formal employment, so that families have resources to face the increases derived from high cost of food, transportation, gasoline and taxes, as well as improving business productivity so that they can offer products and services competitively for both the domestic and foreign markets, which becomes a key factor for the development of the economy”.