Despite the crisis the country is experiencing, which was aggravated by the pandemic, experts agree that maintaining the habit of saving is essential to overcome the situation in a better way.
Analysts consider that the COVID-19 situation leaves 5 valuable lessons on saving and investing, which can be applied, even if there is not a lot of money to start with.
Lesson # 1: Is it possible to save despite the crisis?
“Yes, it is possible to save in the middle of the crisis: the first thing is to review the income and expenses and prepare a budget that is as realistic as possible. Within it, the ideal is to allocate a percentage to savings and look for the necessary mechanisms to make it a programmed and automatic.
The economic consequences of the pandemic have made consumers less inclined to spend. Confinement has changed people’s consumption patterns, as there is fear that their income will be diminished in the future or that they already have a bad situation. The best recommendation is austerity and for those households that had savings, try to make the best use of these.
Lesson # 2: Stay calm.
You should always keep calm (don’t make decisions lightly). And, despite a difficult environment, there are always attractive investment opportunities.“The decision to save, added to the fact of remaining calm when deciding in which security to place these savings, in environments with uncertainty, allows the investor, with available liquid resources, to take advantage of the opportunities that arise in the markets.
Lesson # 3: Explore Alternatives.
Future Funds, in both currencies, is ideal to increase capital and use it in the medium – long term; as well as the Real Estate Fund and the Stock Market.
Investment funds allow small savers to access higher returns due to diversification in different issues. The manager gathers funds from different investors, physical or legal, to acquire bonds with higher yields on the market. Together they provide an average return higher than a single position.
In general, interest rates have fallen as a consequence of the particular situation that economies are experiencing, hence the recommendation is to look for other alternatives.
What savers can do is diversify their portfolios, and place a part of their resources in options that generate a little more yield, even if they are riskier, always counting on professional and personalized advice.
Lesson # 4: No High Capital Required to Get Started
To enter the funds, the minimum investment amount is ₡ 25,000.00 or $ 50. The saver will have the advice of a commercial executive to know the advantages and gradually increase his investment. This will allow you in the future to choose to pass your money to the stock market or real estate.
Historically, these funds have offered a higher return than a savings account and greater liquidity than investing directly in a term certificate in a state or private bank.
Lesson # 5: Regulated options will always be the best.
Faced with the temptation to invest in digital options that are not regulated, care must be taken, since the higher the yield or the offer of profits, the higher the risk. That means you can lose your money very easily.
Some key recommendations
The experts offer the following recommendations for those who want to start saving, or start reinvesting their savings:
Make a budget that allows you to establish a level of savings.
Always consume within budget and avoid spending on unnecessary things (Ant Expenses).
Avoid being seduced by offers / advertising on unnecessary goods and services.
Do not get into debt for consumption or expenses that in the medium or long term will not have any return.
Find out about the entities regulated by Sugeval that operate in the financial market.
Do not invest in unknown companies or in instruments that are not understood (unregulated digital platforms, companies that offer exorbitant returns and out of the market average, companies promoted by non-professionals).