In the current economic context, saving has become a complex task that we might think is reserved only for a select few. We can also see how the savings we would have made so far have depreciated and thus reduced our purchasing power. In order for this not to happen and for us to see that we can save money, we need to implement a different economic strategy than we have used so far. These are the necessary steps to maintain the accumulation and even increase that bag.
1.- Record your spending
Keeping an expense diary helps to discover ant expenses. These are things we can avoid and, combined, reduce our ability to save: a coffee or ice cream we can skip, or a taxi we can replace using public transport.
2.- Prepare a budget
After recording all the income we have, we can estimate income and expenses based on what we observe and what we expect to happen in the future.
3.- Plan and set goals
We can create a savings item within the budget. Indicate how much and for what purpose we want to save. Then calculate how long it will take to reach that goal. We can set a few goals and a few savings items. If we already have some savings, we can specify the amount we want to add to this savings.
4.- Make decisions based on your priorities
Many purchases can be impulsive. Before incurring an expense, it is useful to consider whether it can be deferred, replaced or incurring other costs later, for example spare parts, maintenance or accessories. Maybe even deleted.
5.- Renting savings-investment products
As we have said before, the current economic situation leads us to take different steps than what has been done so far. To help us save, there is now a wide variety of financial products that allow us not only to spend all of our income, but also to invest our money with the aim of making another profit or return with minimal risk. availability of growing capital.
The Horizon Investment Program is free active management savings insurance to MAPFRE customers.
Classic fund portfolios, securities portfolios or well-known term bank deposits are conservative products that do not provide us with an additional return and are very useful in these times of economic loss. It is useful to act now, or to stand still can lead to a loss of purchasing power, reaching 40 percent in 5 years and 75 percent in 15 years, if the current level of inflation is maintained. Additionally, with ever-increasing life expectancy, being able to increase the percentage of income we save should become a priority.
MAPFRE has a wide range of savings and investment solutions that adapt to any situation so that everyone can find the solution that suits them best. From the Horizon Investment Program to free active management savings insurance to the client, to individual systematic savings plans (PIAS) that offer different tax benefits and provide continuous savings according to each person’s risk profile.
PIAS or Individual Systematic Savings Plan is a savings plan that works like life insurance. On the other hand, SIALP or Individual Long-Term Savings Insurance is a long-term savings insurance that offers coverage in the event of the insured’s expiration or death. One is the plan, the other is insurance. Both are tax free (only redeemable as a lifetime annuity in the case of PIAS) and although they have some differences such as total limit or maximum annual contribution or redemption, both offer guaranteed savings and profitability.
In this area, MAPFRE has launched SIALP Garantía 5, a 5-year savings insurance policy with periodic annuity payments, which has a key advantage: tax exemption at maturity. It is a product that is required for SIALP products with a minimum of 85%, 100% guaranteed, and a return of over 1% for the contributions made over 5 years. In this way, SIALP Garantía 5 offers a fixed income as well as being tax-free at maturity for the returns obtained as long as you keep your savings for at least 5 years or contribute a maximum of 5,000 Euros per year. There is also the possibility of fully amortizing only one year after hire, but in this case the tax exemption will be lost.
Also a pioneering simulator
To assist with savings, MAPFRE has recently launched its online savings simulator. It is a pioneering tool that helps users save money from just 1 Euro per day according to their purpose and personal situation. They will also have the opportunity to download a detailed report in PDF format with the solutions suggested by the simulator.
This simulator is available on the website. MAPFRE.