The consequences of the COVID-19 pandemic are still dire: employment has not returned to pre-pandemic levels, income losses have exacerbated poverty and food insecurity in many countries. In addition, it is estimated that economic growth in Latin America, including Mexico, will decline by 2.9% in 2022, so it will take a long time for much of the region to fully recover and return to pre-pandemic production levels, reveals the World Bank in its World Economic Outlook: Latin America and the Caribbean .
The year 2022 will be moved, there will be turbulence in the markets because the impact of the pandemic will be felt more strongly on inflation, on the loss of purchasing power and on the lack of employment.
In fact, according to the study, centennials and millennials are the generations most affected by the pandemic of the Kantar consultancy, adults belonging to the Centennial (18-24 years) and Millennial (25-34 years) generations are feeling more severely the impact of the pandemic than any other generation, as 35% of centennials and 37% of millennials say they are very concerned about the situation; More than half of millennials (52%) and 49% of centennials (also called Generation Z) say they have already experienced an impact on their household income, while 26% of young people between 18 and 34 years old of age mentions believing that it will be affected in the future, more than other generations believe.
Faced with this scenario, Julio Chauvet, general director of the Aprende Investiendo trading academy, highlights that even when everyone’s financial situation has been affected differently from the pandemic, the truth is that for many people it has also represented the opportunity to assess your financial situation and prepare for uncertainty. “Speaking of money and personal finances, in your hands is the opportunity to enter 2022 without fear, so the ideal is that at the time of receiving your Christmas bonus and other end-of-year compensation you firmly commit to creating an emergency fund , to generate additional income or to look for investment alternatives, whose returns allow you to conserve the value of your money over time ”.
We share seven tips that will help you not to run out of money and improve your personal finances in 2022:
1. Eliminate preconceptions about money. There are various misconceptions such as that money is bad, that it is immoral to have a lot of money or that the poor will not progress. It is key to eliminate those ideas that have been instilled in us all our lives. We require a mindset or mental programming of business, abundance, growth and development that helps you see how you can improve in different aspects of your life, move towards a specific goal and work every day to achieve it and take one step at a time , which in the long term will give you excellent results.
2. Strengthen the foundation of your personal finances. Insurance and the emergency fund represent the basis for healthy finances, therefore, you should consider them within your budget. Insurance protects you against any adversity, for example, illness. According to the Mexican Association of Insurance Institutions (AMIS), during the pandemic insurers have attended 44,273 cases for medical expenses in Mexico, with an amount paid of 22.191 million pesos as of October of this year. On the other hand, remember that an emergency fund is the reserve of money that will help you cover the financial surprises that life throws at you, such as the loss of a job, medical or dental emergencies, unexpected home repairs, car problems. , unplanned travel expenses, and so on.
3. Pay off expensive debts. It is vital to pay debts that exceed interest rates of 15% per year, otherwise you will be suffocated by any eventuality, for example, the loss of a job. They can be debts with credit cards, personal loans, among others. If you want to start saving or investing, you should consider paying these debts.
4. Build your investment portfolio with safe haven assets. Investing can help you maintain financial stability, especially safe haven assets such as precious metals, real estate, and cryptocurrencies like bitcoin and ethereum. With regard to cryptocurrencies, it must be taken into account that at this moment they are in an upward cycle that could end in the first months of 2022, which would cause a significant drop in the price of these assets; For this reason, the most used strategy is the so-called Dollar Cost Averaging Bitcoin , which consists of making constant and periodic purchases to average your entry point. In http://dcabtc.com you can find a simulator where more information about it is shown. In addition, in Goodbye to your boss you can take the free Introduction to Investing course, which is totally digital and adapts to your schedules.
5. Look for new sources of income. The idea is that you have more than one source of income, more than three if possible, since that way you will have much more economic and financial stability. Do not depend entirely on a salary and try to invest to generate surpluses in different assets. Today there are countless options to generate additional income, for example, online sales, self-publishing of books, podcasts, online courses, and so on.
6. Lean on an accountant. It is a fact that you must pay taxes regardless of your business or profession, you will pay as an employee, professional or entrepreneur. If you are messy in managing your finances, chances are you will have problems. If you want to be up to date and at peace with the SAT, then file your monthly and annual returns in a timely manner. Don’t miss out on this suggestion and find an accountant to help you.
7. Invest in your personal development. It is the best you can do, so spend time, money, effort, attention, undertake, learn new things, try to increase your skills and develop new ones. Today you have at hand, on your cell phone, a great diversity of YouTube channels, blogs, podcasts, communities on social networks, education through courses, workshops, books and content in general that promote your personal development.