Make better financial decisions

Small changes, big benefits for your wallet

Make better financial decisions

Small changes, big benefits for your wallet

Learning to manage money is one of our most important tasks. At ALFA Live we are excited to share some financial tips with you based on the book “The Little Capitalist Pig” by Sofía Macías.

“You don’t need to be a Nobel Prize in Economics
to manage your money optimally. ”

The Little Capitalist Pig

Learning to manage money is one of our most important tasks as adults. Without a doubt, the way we manage our finances will impact our quality of life. Of course, the more stability we have with our “numbers”, the better and calmer we feel in our daily lives.

At ALFA Live we are excited to share some financial tips with you based on the book “The Little Capitalist Pig” by Sofía Macías.

Break down your monthly expenses

If you know what you are spending, you will more easily know what you can save. Write down what you are spending the money on, keep the “deadlines”, and start reducing those “extra” expenses.

Do not get into debt.

Control the use of your credit card and/or prepare a plan to settle your debts. Remember, a basic rule is not to spend more than you earn. We suggest you save 10% of your income to your savings.

Apply the 30% rule

Limit 30% of your income for entertainment, clothing, travel and things that are not basic necessities. If you don’t need it, don’t buy it.

Create the habit of saving and investing.

Regardless of the amount, get used to saving some money. 20, 50 or 500 pesos, all add up. Rome was not built in a day, so little by little and if you decide to invest, you will see how the little pile becomes a mountain. The important thing here is that saving becomes a habit.

Find yourself a financial accomplice.

It is always good to have someone we can share our secrets, joys, worries, etc. The same applies with our money. If we have someone who can keep us aware of our spending habits, it will be easier to get our money in the piggy bank.

Find out how to generate extra income.

If you can no longer cut expenses, you need to generate more income. Find what you know how to do very well and take advantage of it. For example: giving art classes, teaching how to play an instrument, academic tutoring, etc.

Research everything about your AFORE.

The purpose of AFORE is that you, as a Mexican worker have a savings fund when you retire. The money they “take away” becomes an investment fund and translates into your retirement pension.

Spend or invest?

Learn to turn your money into “assets,” that is, resources that generate money. Sounds complicated, but it’s not, you just have to consider when to spending and when to invest. Paying for something that will generate income over time, that is investment.

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Entrepreneurship Lifestyle