Due to the volatility of the economy, the Bank of Mexico (Banxico) forecasts a difficult time at the beginning of the new year. Given this situation, here are some tips on how to deal with January's hard times.
The first point to take into account is to understand the economic reality of the personal environment, that is to say, to understand the context of the individual and collective financial situation. To this end, it is essential to analyze that inflation could increase up to 6.3 percent, according to Banxico.
It is also important to be aware of economic projections, which can be useful in planning personal finances. For example, knowing that prices in food or basic services will continue to rise, a challenging situation for the day-to-day economy, especially at the beginning of the year.
Set limits and control emotions, especially at a point where extra spending can be a problem. Set a budget that adapts to the needs of each person and does not exceed it under any circumstances. This will prevent that at the time of purchase, the euphoria of the season makes you lose control and end up compromising your finances. The best way to start the new year is to do it with healthy personal finances, to mitigate any circumstance.
On the other hand, taking advantage of the Christmas bonus or year-end bonuses can be an excellent opportunity to effectively overcome the January slope. When it is an extra income, the best thing to do is to make it work; for example, add it to a savings bonus or emergency fund to be prepared for any unforeseen event.
Nowadays, there are several ways to make the extra money grow, from having an investment fund or applying voluntary savings to an individual Afore account. Both instruments can help people generate more economic returns in the medium and long term through savings.
Another important aspect is to prepare a budget for the beginning of the year, to be aware of the amount of money that will be available for the period, and to know the income and expenses. Take into account fixed expenses (tuition, services, insurance payments, taxes) and include unforeseen circumstances, for example, an accident or an adverse situation.
Every day represents an opportunity to acquire a new financial habit or to make use of the different resources in favor of personal finances. Therefore, it is important to encourage good financial practice throughout the year and to understand that saving can be a help in the future, especially during dates such as the January slope.