1. Learn

Spend a few hours a week getting informed and learning about financial education. It may seem boring at first, but doing so will allow you to manage your financial resources more consciously, responsibly and assertively. Among other things, you will learn how to save for a goal, how and why to take on debt and how to take advantage of your financial products, for example, bank accounts or credit cards.

The important thing is that by reading content on financial education, you lay the foundations for a healthy personal economy and empower yourself with all the resources you have and could access.

2. Set financial goals

In many cases, financial goals help to achieve personal goals. Therefore, one of the most basic tips we can give you is to start setting these types of goals. What do you want to achieve? How can you achieve it? Do you need money to fulfill that dream? This is how you will find the path you need to follow to improve your quality of life and accomplish everything you set out to do.

3. Plan and save

The elixir for healthy finances is saving, which is why we have talked about it ad nauseam in other posts. According to Ipsos, a firm specializing in market research, after the unexpected arrival of the pandemic, 78% of Ecuadorians recognized that saving is a priority and we know why. Review your budget, update your expenses, make decisions and start planning your savings. In the medium/long term you will have a secure source of extra money that you can use to meet goals or face emergencies.

4. Manage your debts well

Debts can improve your quality of life or sink your economy. Therefore, good debt management is extremely important to heal your finances and meet your goals without frustration. Before accepting or applying for a new debt, make sure that your debt capacity allows you to do so, choose a payment method to get out of other previous outstanding accounts and make sure that the amortization table adapts to the reality of your finances.

In addition to taking advantage of the benefits of a healthy debt, your credit history will grow with a good rating.

5. Spend wisely

We understand that spending on what you like may end up in a feeling of guilt or that, sometimes, you may go overboard without even realizing it. For your peace of mind, we're going to change that right now with a technique called conscious spending. To do this, you must categorize your expenses, automate your payments, set aside a percentage of your income for those personal treats, and finally, track your cash inflow and outflow records from time to time.

Translated by: A.M