Savings

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Savings
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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.

Administration for all.

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