In today’s financial climate, saving money is challenging for many people, even when the goal is clearly within reach. A smarter approach helps preserve purchasing power and even grow savings over time. The following steps outline a practical path to build wealth responsibly and protect finances against inflation.
The first step is to record spending. Keeping an expense diary reveals hidden charges and small habits that quietly erode savings. Skipping a daily coffee, choosing a more affordable dessert, or taking public transport instead of a taxi can add up dramatically over weeks and months.
2.- Prepare a budget
With a clear record of income and outflows, it becomes possible to estimate ongoing earnings and future needs. A budget built from actual data helps predict shortfalls and plan for changes in circumstances, ensuring savings stay on track even when surprises arise.
3.- Plan and set goals
Saving should be treated as a dedicated line item within the budget. Specify target amounts and timelines, then compute how long it will take to reach each goal. It is sensible to establish multiple goals and corresponding savings targets. Where existing savings exist, indicate how much should be added to grow them over time.
4.- Make decisions based on priorities
Impulse purchases are a common drain on finances. Before spending, it helps to assess whether an expense can be postponed, substituted, or incurred with lower costs later on, such as by budgeting for spare parts, maintenance, or accessories. In some cases, cutting a purchase altogether may be the best option.
5.- Consider savings and investment products
The current economic environment calls for a thoughtful approach to saving that goes beyond simply spending less. Today a broad range of financial products exists to help people grow capital with minimal risk. This includes vehicles designed to preserve value while offering potential returns, which can help offset inflation and support long-term financial health.
The Horizon Investment Program is a free active management savings option designed for MAPFRE customers, combining professional oversight with a flexible approach to growing savings.
Traditional fund portfolios, securities portfolios, and standard bank deposits tend to be conservative and may not deliver extra growth in times of economic pressure. Acting now can help protect purchasing power, while delay may lead to reduced buying strength in the future. With longer life expectancy, increasing saving rates becomes a practical priority for many households.
MAPFRE offers a diverse set of savings and investment solutions tailored to different situations. From the Horizon Investment Program to free active management savings insurance, to individual systematic savings plans (PIAS) that provide tax advantages and automatic saving aligned with risk appetite, there are options for many profiles.
PIAS, or Individual Systematic Savings Plan, functions similarly to life insurance, while SIALP, or Individual Long-Term Savings Insurance, serves as a long-term savings vehicle with coverage in case of death or expiration. Both are designed to provide steady growth and, in certain cases, tax advantages. A key distinction is how they handle contributions, limits, and redeemability, but both options aim to offer predictable savings with potential profitability.
In this area, MAPFRE recently introduced SIALP Garantía 5, a five-year savings insurance policy with periodic annuity payments. A notable benefit is tax exemption at maturity, provided the plan remains active for at least five years. The product offers a high degree of certainty, with minimum guarantees and the potential for modest returns on contributed funds. Contributors should be aware that early full amortization may affect tax exemptions, so term choices deserve careful consideration.
A pioneering simulator
To support saving decisions, MAPFRE has launched an online savings simulator. This intuitive tool helps users plan savings starting from as little as one euro per day, aligned with personal goals and circumstances. Users can download a detailed PDF report that outlines recommended strategies and projected outcomes based on the input provided.
The simulator is accessible via MAPFRE’s website and is designed to demystify the saving process for general audiences, including those in Canada and the United States who seek practical guidance on money management. [MAPFRE]