The need to start saving at a young age has been made more obvious due to the current economic situation. In this article, we will highlight how you can set up a savings plan.
Usually, we associate a savings plan with a more mature age, after several years of earning a fixed salary. However, the current economic outlook is pushing younger people to start saving earlier to obtain a pension when they decide to retire.
Faced with this situation, this question arises: how can you create a savings plan at a young age? This is a difficult task for this age group because expenses such as first homes, cars, or the costs of starting a family, combined with lower salaries, make it difficult to save. However, there are different ways:
It all starts with establishing real objectives, taking into consideration your savings ‘profile, the real salary, and available assets.
A good place to start is partial saving, month by month, by setting aside a small part of the salary. With that purpose, it is necessary to plan a strategy, combining concepts as the salary obtained, how much you want to save, and, above all, how much you are able to save. Maybe 20% of your salary is enough to start with?
Some banks provide saving plans for young people and even there are investment funds specifically designed for that age group. However, bad diversification of the investments is often a recurrent failure among young people when it comes to saving. Putting all the money in the same fund, no matter how profitable it may be in theory, is not a good practice. A good idea would be to invest in mixed funds, which allows diversification.
In conclusion, it is possible to set up a savings plan at a young age. With the right advice, you can achieve great results. At Altarius Capital, we provide the keys to choose the investment funds that best suit the needs of each client, as well as assets management and financial advice, among many other services. Get in contact with our team. When investing, your capital is at risk.
