Changing personal and family habits from the root are the two paths to improving personal finances. This is how experts directly urge people to find financial stability and, above all, improve their quality of life.
It’s no secret that finances and money management can be a headache for many people, which can become a major difficulty that causes other social and emotional impacts.
Ana Laura Bolaños, commercial and operations manager at Instacredit, explains:
For many Costa Ricans, financial management is truly a fundamental problem rooted in a lack of financial education from an early age, a deficiency that fosters a series of behaviors and habits that undermine personal stability.
Bolaños affirms that despite this difficulty, which is passed down from generation to generation, it is possible to heal our finances from the root, and believes this situation can be compared to the process of losing weight:
When we set out, for example, to lose weight, we may start with great motivation, but weeks (or days) later we give up and go back to eating the same things as before and/or slow down our physical activity. Most of the time, this happens because our actions have changed, but our mindset has remained the same. This same situation occurs with finances. Both goals require information, discipline, consistency, and, above all, addressing the root of the problem.
Experts emphasize that creating a monthly budget is of little use unless it is followed punctually. In fact, without conscious and responsible financial management, any strategy will only be a temporary palliative.
Habits to improve in personal finances
Making the decision without prior analysis: Costa Ricans often apply for loans but are unaware that they must pay them on time, as they do with other items such as utilities. This may be because, unlike the financing offered by financial institutions, failure to pay electricity or telephone bills on time has an almost immediate consequence: suspension of service, while with loans, the implications are more medium-term.
Applying for a loan without analyzing your payment capacity or signing contracts without understanding their terms: Many debtors are unaware of basic concepts such as current interest, late payment interest, and administrative fees, and this leads to unpleasant surprises.
Perceiving financial institutions as enemies when accounts are past due: Ignoring calls or messages from creditors only worsens the situation. Many institutions offer alternatives to regularize payments, such as restructuring or payment agreements. The faster the situation is addressed, the more options there are to avoid a negative impact on your credit history.
Leaving loans in default without taking action: Every day a loan is late has financial consequences. In addition to the principal and current interest, late payment interest and administrative costs are added. Over time, this can double or triple the initial debt. Failure to regularize the situation can lead to lawsuits, foreclosures, and damage to your credit history, limiting your access to future credit opportunities.
