Three basics of managing our money

However, it seems obvious that in order to learn how to manage our money, it is essential that we have earned it first. Diversifying our earnings is a strategy that can shield us against a possible recession or an unforeseen event. At 11Onze we have compiled three basic tips on how to do this.

 

In times of uncertainty it is key to know the answers to: how to save, how to grow savings and how to control spending. We will hardly be experts in finding answers to all three questions at the same time, but if we understand the concepts behind each of them, we have a much better chance of managing our money properly. Not only will we learn to cover the basic needs, but we will know how to enjoy them, and we will be very clear about when we should do without those that are not as basic as we thought.

 

Saving: at least 10% of income

It is often said that saving is the main basis for financial success. Having money in savings is what gives us the ability to respond to unforeseen situations – be it incapacity due to illness or unexpected charges, starting a business or going back to school. But it is important not to confuse saving with investing: while the former gives us peace of mind, even in times of global economic crisis, investing can make our savings multiply, but it can also be a source of headaches and cause us to lose our liquidity.

One dilemma we may face is whether to pay off debt or save. It all depends on the interest rate of the debt. In high-interest cases, such as credit card debt, it is generally preferable to pay off the debt to zero before considering saving. But in cases where the interest on the debt is low, such as with a mortgage or even a personal loan, it makes sense to save and at the same time pay off the debt slowly.

 

Slow growth, low risk, and the other way around

A savings account has been the most traditional way to grow our money, especially for the more conservative and risk-averse. However, with relatively low interest rates and inflation visiting us much more often than desirable, other forms of investment are gaining ground, especially in the face of an increasingly financially literate clientele with a relatively higher purchasing power than previous generations.

At this point, the range of investment products on offer is wide and varied, with different levels of risk. Everyone must be aware of their financial knowledge and, above all, of the amount of money they are prepared to risk and lose, especially if the expectation of growth is high and in the short term. It should be borne in mind that an investment manager can be a very good option when it comes to choosing a financial product that will substantially improve the profitability of one’s savings.

 

Spending: need vs. want

Of course, we will not save everything we earn, but we must distinguish between two types of expenses:

  • Necessities. Here we count expenses on the basics we need to live, such as food, accommodation, electricity supplies, water, public transport, among others.
  • More superfluous wants and products. By elimination, we include everything that is not strictly necessary. This would include impulse purchases, luxury items, leisure travel, etc.

Making this distinction does not imply that we cannot spend money on things we want, but do not necessarily need. Desire and actions that do not have a purely practical purpose are part of the human condition. This is a fact. Therefore, we must also allow ourselves these expenses, provided we adhere to a pre-set budget, whether weekly or monthly.

11Onze is the community fintech of Catalonia. Open an account by downloading the app El Canut for Android or iOS and join the revolution!

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  1. Jordi FerréJordi Ferré says:
    Jordi

    M’he enrecordat del meu pare que em deia: Si en guanyes 5, no te’ls gastis tots, estalvia 2 com a minim.

    • Jordi CollJordi Coll says:
      Jordi

      Doncs sí, és una bona opció poder estalviar 2 de cada 5, però avui en dia, amb la de despeses que hi ha, és força complicat i difícil de poder-ho assolir… Moltes gràcies pel teu comentari, Jordi!!!

      7 months ago
  2. Jordi MorenoJordi Moreno says:
    Jordi

    Moltes gràcies pels consells👍

  3. Laura León AmatLaura León Amat says:
    Laura

    Estalviar és una acció senzilla, entenedora on pots controlar quina quantitat i casa quan… els mals de cap venen despres que no saps on posar-ho, que der-ne i entendre el gran mon i interessos de les fiances i els bancs

    • Jordi CollJordi Coll says:
      Jordi

      Doncs tens molta raó, a on poses els diners que pots estalviar? Al compte corrent no et donen res, la borsa està sota mínims, potser ara és un bon moment per comprar, però has d’encertar-ho, hi ha l’opció dels fons garantits, bons, lletres del tresor, derivats, criptomonedes, i també hi ha l’opció d’invertir per comprar or amb 11Onze, potser aquesta última és la més encertada i fiable tenint en compte els factors de rendibilitat/risc, de totes. Moltes gràcies pel teu comentari, Laura!!!

      3 years ago
  4. Albert Royo VergeAlbert Royo Verge says:
    Albert

    La veritat i la realitat bones llisons! Enhorabona!

  5. Manuel Bullich BuenoManuel Bullich Bueno says:
    Manel

    Molt bon article.
    Gràcies

  6. Josep RouraJosep Roura says:
    Josep

    La tranquilitat la donarà el fet d’entendre en què invertim. Ja ens ho poden aconsellar 10 nobels d’economia, que si no ho entenem podem tenir moments de nervis que facin que la cag…

  7. Josep RuaixJosep Ruaix says:
  8. Daniela SimónDaniela Simón says:
  9. Manel LopezManel Lopez says:
    Manel

    super requetebo!

  10. alicia Coiduras Charlesalicia Coiduras Charles says:
    Alicia

    Ben resumit i ben explicat,estalviar es fonamental i aquest consell me l’apunto

  11. Joan Santacruz CarlúsJoan Santacruz Carlús says:
  12. Ramon PuigRamon Puig says:
    Ramon

    Bona relació d’explicacions vers els dubtes que tot sovint ens venen de si ho estem fent be i correcta, sempre he pensat que ajuda molt a estar tranquil si trobes una persona que sàpiga explicar i demostrar que es el que convé en el moment de fer l’operació i després que hi hagi algú que vagi observant que tot funciona segons lo previst.

    • Silvia Granado says:

      Així és Ramon, tenir una persona que t’informi i que et doni tranquil·litat en aquest aspecte, és el millor! Gràcies pel teu comentari.

      4 years ago
  13. Trinitat Sànchez RodriguezTrinitat Sànchez Rodriguez says:
    Trinitat

    Interessant article ens ajuda a prendre consciència dels nostres diners.

    • Silvia GarrigaSilvia Garriga Sole says:
      Silvia

      Gràcies pel teu comentari, si ens vas seguint a La Plaça i a les xarxes socials, de ben segur que trobaràs més continguts que t’agradaran.

      4 years ago
  14. Joan ReigJoan Reig says:
    Joan

    Bon article que be a introduir el que seria el factor de risc financer personal. Quin risc estem disposats a acceptar podent dormir a les nits.

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