Bogota — Holy Week is one of the most important rest seasons of the year, but just as you rest or go on vacation, you spend And you have to be careful not to exceed these, or to commit some financial sins that translate into headaches and pocket pain.
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7 Financial Sins You Should Avoid
BBVA financial education experts identified seven sins or bad habits that Colombians tend to incur on these dates and propose some tips to avoid them and protect financial health so that these holy days do not become an ordeal:
- Bypass the budget above all things. Although it is one of the most recurring tips when it comes to financial health, it continues to be one of the most common mistakes. Prior planning always prevents money leaks, so for the following trips it is vital to buy tickets, reserve accommodation, allocate a good percentage for food, goods, services and, of course, unforeseen events.
- Desecrate the credit card. Although several financial entities these days have announced the reduction of the interest rate, losing control over the use of the credit card later becomes a viacrucis for finances. This payment method should be used with greater caution and according to the budget plan that has been considered.
- The gluttony of offers. Promotions and trade offers become a temptation, therefore, the ant expenses constitute one of the largest outflows of money. Given this, it is advisable to evaluate the purchase of products or items so that they do not end up being unnecessary acquisitions. The key will be to ask yourself: Do I need it?
- Don’t save. Although money is often not managed strategically, the time after Greater Week can become an opportunity to put your personal finances in order. Being clear about the income, expenses and surpluses will facilitate saving.
- increase debts. Although many people and families arrive with regret after resting and overspending, for the following days it is key that what is allocated is the available money and not that which generates new debts that cannot be met.
- Ignore personal finances. Not knowing what is happening with personal finances; not being aware of invoices and payments; or not reviewing bank statements can lead to unnecessary losses and expenses. For this reason, before investing the resources in Holy Week, it is essential to be clear about the economic capacity available.
- Not being prepared. Having an emergency fund is important to deal with unexpected situations such as medical expenses that may arise during the Easter holidays. In that order of ideas, having money for the eventuality will allow you to avoid a complex financial situation in times of crisis.
Bancolombia experts add that “Although no one takes away what has been lived, it must be remembered that debts must be paid. It is important to remember that compliance with the obligations within the agreed deadlines and terms is essential to have a good credit history that allows access to credit benefits in the future, plan other vacations and not disturb the peace of mind of your pocket.
They also said that It is important to rely on digital tools such as financial coaches, which help you to be aware of your expenses month by month. “With this, you can take action on those expenses that you identify as unnecessary.”
