▷ 6 Savings Characteristics

the savings it is certainly one a fundamental part of our financial stability, for some it is an easy task for others saving is a little more complicated.

As we well know, saving it is a habit activity which implies taking a part of our income to generate a reserve of money as a forecast in case of emergencies or to finance a project that we have in mind to carry out.

However, to Sometimes as much as we intend to save, we do not achieve it, this is because saving is a habit that It implies perseverance and patience.

Thus, saving has certain distinctive characteristics in our finances that we must know in order to learn how to save.

That is why in this post we will explain which ones have those saving characteristics that you should know so that you can improve your finances.

Why is it important to save?

The main reason to save is for generate a provisionthat works as a savings cushion in case of financial problems that might occur in the future.

East not just limited to people with low or high income, it is also crucial for companies this forecast, since economic crises generally affect the whole of society, some more intensely than others.

Certain disasters such as pandemics cannot always be controlled or accidents that could severely affect our financial stability, this being a fundamental reason to generate emergency savings.

Furthermore, only through savings can we generate a provision that allows us to generate an equity for the future, such as owning a home or even starting our own business.

 6 Characteristics of saving that you should know

People save for different reasons, whether they save directly in the bank or outside of it; however, what all savings share in common are the following characteristics:

It is a habit behavior

To generate such provision of money it is not enough to do it occasionally or only when we have a surplus of money; because saving is a behavior that should be applied in finances on a regular basis.

To do this, we must make the section of our income during a period of weather which may or may not have a specific purpose.

However, when we begin to apply the habit of saving on a recurring basis as part of our finances the process becomes much easier.

It is only possible when income exceeds expenses

To generate a savings reserve it is important that the income exceeds the expenses, otherwise we will not be able to save, even worse we could get into debt without having the necessary liquidity to to pay.

For it it is essential to budget expenses based on income, so that it is possible estimate the money we will have available after fulfilling all our obligations.

Based on the income and fixed expenses that we generate, we will be able toestablish what portion of the income we will allocate to savings, which can be approximately 25% of income.

Otherwise, if expenses exceed or equal income, we will have to rethink how we manage our finances, reducing expenses or generating new sources of income that allow savings to be generated.

They have defined goals:

Part of saving is being clear about savings expectations by setting reasonable goals, both in installments, monthly, quarterly, half-yearly or others, as well as in expectations; if we only want to generate emergency savings, to acquire a house or if we simply want to save and based on what we have saved and our priorities, establish the use that we will give it.

It is a process of discipline and patience

We must be clear that saving is a habit of perseverance and patience, given that a savings reserveit doesn't happen overnight and we cannot become compulsive and allocate all our income to savings, therefore, it is essential to establish reasonable expectations.

Generates financial stability

If a person or economic entity has savings reserves, they have the Sufficient economic solvency to meet the commitments and cover possible unexpected expenses without the need to acquire debt Or at least not entirely.

Therefore, it is easier to recover from possible economic crises, thanks to the savings forecast they have accumulated.

Reduce unnecessary expenses

Saving does not imply being stingy or not spending, it only implies being rational and avoiding spending money on unnecessary things whose money was asked to be used on things of greater utility or to generate a provision; forever havingfull awareness of our financial situationOf course once in a while it doesn't hurt.

The expenses with which we have to be more careful are those ant expenses, because those small expenses that we usually see as insignificant due to their small value or cost, they can weigh heavily on our budget if we do not control their consumption.