Articule 21.
Most of us have a right way about our personal finance, but
another one does not do the same. For argument sake in finance theory, the
people must to consider two aspects in their finance matters: savings and
consumption. There are more but I am focussing in those points as first issue.
In my empirical research, I strongly believe that Latin-American
people, just right here in South America, they do not think in personal finances
plan, as a common behaviour. Such way drives the people toward consumption forgetting
savings as programme life.
Saving is a method that permits a conservative person reduces his
expenses putting money in a bank or in “home” using it in the future to invest
or for academic, health or another personal proposes.
Likewise, consumption, understood it as expenditure when people like
buying things indiscriminate useful or not. Forgetting the future, in terms of
unexpected happens, losing to gain interest or failing to invest.
Though, in our country we live in an inflationary economy, it does
to increase quickly products prices, and people try to win the game, of course I
think people can to select what and when to buy and how to use it, taking
advantage of rational behaviour, buying only necessary things and saving the
rest of money.
In a few days this issue to be continued.
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citing this content with the APA style:
(Pacheco. 2017, Octuber. Savings. Blog Administración para todos.
Obtained: 2018, 17 from March. https://tinyurl.com/y2xugsgs)
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