No one is exempt from facing financial problems, no matter how much you have; conditions are volatile and if we are not prepared our dreams may be at stake.
According to ECLAC, the Economic Commission for Latin America and the Caribbean, 175 million people in LATAM were living in poverty in 2015, 7 million more than in 2014. The economic gap has a clear upward trend and unfortunately, 4 Latin American countries They are among the first 10 countries with the greatest economic inequality worldwide.
Financial difficulties are a constant in our culture. Either because you suffer from them or because you don’t want to have them, recognizing these causes can give you tools to prepare and not let anything threaten your financial independence.
Find below 6 reasons that explain why Latin Americans have financial problems.
Why Latin Americans have financial problems.
1. Lack of awareness about saving.
A study carried out by Sura on more than 12,000 people in LATAM indicates that only 19% save to carry out personal projects. It also highlights that the “upper” classes save more than the “average” and that the number one reason for not saving is: “Salaries are low.”
We are not in the habit of saving, it is not a pillar of traditional education but it is something we can change. Anticipation of emergencies, financial discipline and the possibility of making smart investments are just some of the advantages of this practice.
2. Bold Investments.
Many people give in to the temptation of getting a lot of money in a short time. The point is that not everyone is prepared to assume the losses and as a result they end up assuming debts that end up burying them financially.
If yours is not the risk, there are many alternatives that you can contemplate; Of course, the returns are lower.
Be careful, remember that you can also invest little money.
3. They don’t plan for retirement.
We see retirement so far away that it doesn’t worry us. However, starting to save now is vital if we want to have financial peace of mind.
How about being millionaires at the time of our retirement? It sounds complicated, but David Bach, financial adviser and best-selling author of “The Automatic Millionaire,” does a simple calculation and tells us how much we should save if we want to be a millionaire by the time we turn 65: If we’re 30, we only have to save $6.35 every day and if we have 25, only 3.57 dollars!
The math doesn’t lie, so let’s anticipate and take advantage of the time ahead of us.
4. Live up to date.
Many jobs, generally informal, pay their workers per day. As a result, it becomes difficult to create a saving habit and when they have to make investments or payments, they are forced to go into debt.
5. Uncontrolled purchases.
The facilities of having credit cards are increasingly evident. If we have control over our finances, it’s an advantage…if not, you know. It is easy to think that we can pay not very large amounts in 3 installments, but what happens when we buy more than we can afford and use all our income to pay debts? There is no savings or with which to plan.
Also read: How to avoid having debts using the magic number technique.
6. Personal planning.
Do you know exactly how much you can spend each day? Start there! If you want to increase your chances of creating a business and get closer to your economic freedom, you must have total control over your finances. In the book “How to create a company while working” you will find how to do it, as well as how to optimize your time and always be motivated to create opportunities and make the most of your talents.
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
