A healthy family economy depends largely on a high saving capacity. But this is a concept that can be diffuse.
In simple words, it is the ability of a person to set aside a certain amount of money and not spend it. It is a constant, regular activity. Being able to save implies saving a minimum amount each time income is registered in personal accounts.
To have savings capacity, it is essential that the level of income is higher than the level of expenses. That is, you have to spend less money than you earn.
How to calculate the saving capacity
It is common to hear advice that speaks of allocating at least 10% of regular income to savings. But beyond this, will that may exist to comply with this precept, it is not an exact science.
Savings cannot compromise basic needs. You can only save if you can afford basic supplies on a daily basis.
To calculate the saving capacity, creating a financial statement in detail is the first step. You have to know how much money comes in and how much goes out. More important: what is spent on.
A personal budget will allow you to analyze the level of expenses. Give priority to some things and take others that are not so important. The same as controlling any superfluous expense.
Matter of habits
Personal habits play a fundamental role in the ability to save. It’s hard to build a strong family finances without good money management habits.
Pursuing specific goals, with a certain time to achieve them, is another way to build good habits that ultimately lead to a healthy and robust personal and family economy.
