Saving alone does not generate profitability , since in economic terms money loses value every day , as a result of certain indicators of the economy of a country such as inflation. In Colombia between January and September 2019, the measure by the consumer price index was 3.26%, with +0.63 percentage points more than in the same period of 2018.
This means that if we have COP $ 10,000,000 saved, we will lose $ 326,000 in purchasing power over the course of 2019. We can continue to have that same amount, but now we can only buy what we bought with the value of COP $ 9,674,000.
We always recommend that you save only to invest and thus be able to make your fruits continue to multiply over time and obtain your financial freedom . The Invest Latam platform offers investment opportunities that allow you to beat inflation.
In today’s world the value of currencies tends to fluctuate a lot. In this sense, if one is in an unstable economy, the opposite effect can be had, since after a while, despite having funds, it is most likely that it will be worth less than expected, as it happened. with the increase in the inflation percentage (+ 0.63%) in Colombia mentioned above between 2018 and 2019 causing devaluations in saved amounts, an example of this would be that if we have a CDT that has a profitability of 5% per year with a inflation of 4% per year, we would be obtaining a net return of 1%, because to know if an investment is really profitable, the percentage of annual inflation has to be subtracted from the annual return.
If you have a bank account where you are depositing from time to time to save money, you may be affected since when you want to use it they can charge you a commission for the movements, for example, Bancolombia charges other banks per transaction 1.9% of the payment value without VAT from a minimum cost of $ 20,000 to $ 224,700, varying according to the type of transaction, data valid until the end of 2019, also that same bank only for the use of its platform depending on the type of account, charges monthly from $ 9,150 to $ 12,200, there it is We get a percentage of the money that we had saved.
Savings accounts do not allow linking with a credit card which is very important to cover expenses without the need to carry cash.
It is clear that having a “financial cushion” makes us feel more secure,
but if that support is already given, then you can really start to think about the goals you want to achieve with the money saved.
If you want to measure your “financial cushion” you simply have to take into
account the following indicators:
- You spend less than you earn.
- You have a consistent emergency fund.
- You have contracted non-mandatory insurance.
- You have no problem paying bills and fixed expenses.
When you have saved between 3 and 6 months of your monthly expenses, it
can be called a financial cushion, that is, if you spend $ 1,000,000 per month and have saved $ 3,000,000, you already have a financial cushion.
So if you have money saved , why don’t you think about taking it a step
further? Currently there are various ways to multiply it by making
investments in different horizons, such as in the long, medium and short term. For instance; If your investment is medium-term, you can invest through Invest Latam for 1 year in fixed income . In other words, you will lend money to a company that will give you a fixed monthly fee. On the other hand, if you decide on a variable income, you must be very clear that you could generate profits, as well as have losses as a result of the variation of the asset in which you are investing.
Do not cling to a single amount or a fixed income, seek your financial freedom where you do not have to save a lot of time to acquire a single desired good.
At Invest Latam we will connect you with potential companies verified by us , in which you can invest online, backed by a co-debtor and a promissory note where you will obtain a high return of 18% per year.
And you?… What do you prefer, invest or save ? If your answer is to invest, do not miss this opportunity.