It is common to think that having more money will be the solution to all problems and worries. However, things are not so simple. A strategy to reflect and take action on money can be defined in five steps:

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1. Follow good habits

All people have a certain way of relating to money. It is possible to acquire good habits from parents or relatives, but there are also aspects that must be improved in the relationship with him.

Therefore, as a first step, the recommendation is to reflect and analyze how the money is being used , is it spending more than it is earned? Ideally, debts do not exceed 30% of monthly income.

2. Acknowledge expenses

However, that is where a problem arises, as many do not know how to manage their money responsibly. The main suggestion is to group expenses into two categories: needs and wants.

Now, even after the pandemic , the task has become more complex. Well, the "normal" needs that were had in previous times now became desires, or vice versa. 

We can say that the needs are those expenses that are made monthly to maintain a lifestyle , for example, the payment of electricity, rent, education, food, etc. Wants, on the other hand, refer to expenses that go beyond needs.

Each one establishes their needs and desires according to their lifestyle and way of relating to money. For example, now with hybrid work, having a personal laptop and a good internet signal become essential tools to work, so these elements that could previously be considered as wishes become necessities.

3. Separate at least 10% of your income each month

A useful piece of advice is that before paying the fixed expenses, what we call needs, it is advisable to try to reserve at least 10% of the income to invest it. 

The objective is not only to save money for a period of time until you can spend it on some desire, but to apply that value so that it yields interest and becomes an important asset in the future. At first it may be difficult to “let go” of that 10%, but the long-term result will be worth it and in less than a year you will start to see the results.

4. The bank as an ally

Throughout life, needs and wants change . This means that, at certain times, people will need more money than they receive monthly. The safest way to obtain it is the financial system. Banks have many savings and loan products to help make a person's relationship with money profitable and future-proof.

The recommendation is that when a person approaches a bank, they should ask as many questions as possible so as not to have any doubts about the benefits received and the commitments assumed. 

5. Take care of the credit history

At the time a bank lends money, whether through a credit card, a personal loan , a vehicle loan or a mortgage , a profile of the applicant is immediately created to know if the obligations are paid on time. That is the credit history and it is decisive to establish a healthy relationship with the financial institution.

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