Why October 31 is World Savings Day

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This date has been celebrated since 1924, the year in which delegates from different nations met in Italy at the International Savings Congress, an event that lasted several days and ended on October 31. Hence the date chosen during a context of inflationary acceleration after the defeat in the First World War.

Saving is the part of income that is not used for consumption: of the money that comes in, it is the portion that is not spent. Managing money is a useful means to achieve personal, business or family goals in the short, medium and long term to face possible unforeseen events that do not affect group or individual finances.

According to economists, 10% of income should be earmarked for savings. For this purpose, the financial system has various alternatives to save the currency and invest in order to generate higher dividends.

This date seeks show how saving can change people’s lives and why wasting is not a good way to use money. Saving can take a long time, but undoubtedly most of the people who achieve many of their dreams like owning a house, a car or going to college thanks to saving.

List of tips to apply at home when saving:

1) Sort the accounts to understand what goes in and out of the family economy. Income: Salaries, billing. Investments: Rentals, yields, dividends.

2) Know the monthly savings capacity and commit to that number. Save as soon as the money enters. Do not wait to see what is left over because it is never left over.

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3) Understand where the silver escapes. Identify ant expenses: superfluous and sometimes harmful habits (cigarettes, coffee to give some examples).

4) Invest automatically, allocate all that money directly to investment.

5) Set up your emergency fund, from 3 to 12 months of fixed expenses, depending on your activity. And don’t touch them, unless you have a real emergency.

6) Set short, medium and long term financial objectives.

7) You avoid new debts.

8) Create discipline.

Saving is a positive behavior and it is built little by little. Start today to strengthen your habit until it becomes a habit. The sooner we start with the habit of saving the better. The healthiest way for this habit to grow and become stronger is to do it from a young age so that, when we need it, it does not cost us so much and we can enjoy its benefits.

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