Importance of saving
- Investment: Living without worrying about debts or the money needed to make ends meet is synonymous with peace of mind. - Satisfaction of needs: Having a reserve of money, serves to solve real needs that can arise at different times of daily life. Ways to save It is important first to distinguish what our basic needs are, this will allow us to structure a savings plan avoiding unnecessary expenses. It consists of keeping a sum of money at home. There are also other forms of savings such as: the purchase of goods such as jewelry or long-life consumer items. Disadvantages 1. By having the money "on hand", you can be tempted to spend it. 2. Money at home does not generate returns. 3. Increased possibility of loss or theft. Formal savings It consists of having your savings in a formal entity such as: banks, finance companies, cooperatives, mutuals, public financial institutions, among other entities. 1. It is safe and allows the money to earn interest. 2. There are different pr...