Pinagina Business Solution

Posts Tagged ‘savings’

Everyone gains a different amount per year, also, we all have different financial obligations each month.

Estabecer is important that the quantities or amounts mentioned below are not suitable for all, in this sense, we only provide basic guidance related to savings should perform each month.

As you’ve ever heard, the standard that many experts suggest, is to save at least 10% of your salary each month, this is a good starting point: save 10% of salary.

It is also an easy way to start, since it is a preset amount of money each month, therefore, should not be difficult to save 10% of salary, although you probably want to increase this number as time passes.

Another common way to calculate whether you’re saving money or not enough, try increasing the amount until it hurts.

If you see that things get a little tight, just a little, then you’re saving enough, of course, want to loosen the strings so that your budget has some flexibility, but at the same time want to keep tight so you can keep a strict control of expenses each month.

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The importance of financial education for children is indisputable, we all know people who have been ruined by not knowing minimally managing household finances. It is therefore normal that we have interest and want to avoid that fate for our children.

Although minors because individuals can hire any financial product (with permission from a parent or legal guardian), virtually all financial institutions in Spain offers products designed for the young.

The first thing we must bear in mind is that although youth products, these are real products that have the same implications as an adult, including tax issues. Another recommendation is that although it is not compulsory until age 14, it is recommended that you obtain a TIN (Tax Identification Number) to children before opening an account, and that this would not have to do it as fast as if to meet fourteen were needed. There are even organizations that manage this process, but can also be done by requesting the DNI.

The first product is the checking or savings accounts, the most common. These accounts whose remuneration is not very high, but children often have specific advantages associated with gifts and commission rate zero maintenance. Such accounts are usually open on special dates, such as in births (to be saving something and bring a certain amount each time) or for example in the celebration of First Communion (to more productive use of the large amount of money that some children). Also possible that before the divorce, the parents decide to put all the savings common to name children.

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After building our personal budget, we plan a good destination resulting balance, which, as we mentioned, we must ensure that appropriate to at least 10% of our total revenue, although the ideal is that it corresponds to 20% or up to 30%.

As for what to do with the amount of the balance, there are several alternatives, it is common to allocate the total of that amount to a stock savings, which we use later in case an emergency happens, in order to acquire investments, or to give us any pleasure.

Another option is to determine, based on the amount of the balance, a percentage of our total income (for example, 10%), the percentage allocated to a stock savings and the remaining cash balance and take cash for expenses contingencies.

Another option is to divide the amount of this balance and give different destinations, for example, we could allocate a percentage to a retirement account, another percentage to a savings account, and another percentage to a stock investment.