Financial well-being, that is, having finances under control, is not only a basic pillar for a person to meet their work or personal objectives, but also, experts point out, it is key for them to feel safe in the face of certain unforeseen events that arise. it can present you throughout life. For Xavier Puig, professor of Economics and Business at the Universitat Pompeu Fabra Barcelona School of Management, it is important to follow four steps to try to ensure that the decisions we make in this regard are safe and allow us to live in peace.
The first two are: setting a personal goal (they can be varied, depending on each particular case: like buying a house, taking a trip, studying a master’s degree …) and having income and expenses control. “The best tool to keep that control is the budget. It will allow us to set the course ”, Puig explains in the interview in Much to do, CaixaBank’s content program aimed at promoting financial education and increasing the population’s knowledge of basic concepts about personal finance. The budget, Puig analyzes, will allow us to have a rigorous control of whether we are closer to meeting our goal or whether, on the contrary, we must modify our expenses to improve our financial well-being. “Keeping track of what we spend and what we earn can help us save,” says the expert.
The third step is to minimize the uncertainty. For this, Puig points out several keys. One of them is to have an amount of money saved and that it can be accessed quickly if it arises unexpectedly, which is known as an “emergency fund”. Another complementary option, the professor points out, is to take out insurance. “They are a tool that helps us sleep more peacefully, since they cover us against possible risks,” says the economist. There are several types, but they all work in the same way: the client must pay a monthly or annual premium and the insurer gives him compensation when he uses the insurance. Another point to take into account to have a good control over our finances is debt. “We must try not to get into debt beyond our means,” says the specialist.
The last point is to seek profitability in our savings through investments. As the expert explains, talking about investment is talking about profitability, but also about risk. The higher the expected return, the higher the risk. For this reason, he explains, it is important to avoid taking risks that, in the event of not going well, cannot be assumed.
These recommendations are closely linked to the interview that the engineer Elena García Armada also offered to Much to do, the CaixaBank program that seeks to promote financial culture in society. In it, the robotics specialist talks about how the pediatric exoskeleton that she has developed together with her team will improve the well-being of thousands of children with mobility problems.
CaixaBank Life, CaixaBank’s financial culture portal
Leaders of sport, gastronomy, culture, among others, have passed throughout this year for Much to do to tell, through his personal experience, the importance of knowing and knowing how to handle financial concepts such as entrepreneurship, savings, investment, family finances, debt or bank security.
CaixaBank has also created, together with the Much to Do program, CaixaBank Life, a hub located within the entity’s portal, where it offers, through digital content and free audiovisual resources, keys that serve to improve the knowledge of financial education of all those you need it.