Puerto Rico has been in massive debt for the past few years that left the island on an economic crisis due to the decisions made by our previous governors.
In 2013, Alejandro García Padilla, former governor of Puerto Rico, amended a law that changed the retirement policies for government employees. In a nutshell, the employees’ required years of service increased, and their retirement fund contains substantially less money than what the law initially guaranteed. Due to the economic crisis on the island, politicians have made devastating regulations, and the class they affect the most is the working class. Having said that: everyone (yes, including yourself) must start saving money as soon as they possibly can.
Try to open a savings account and commit to it. Establish an amount or a percentage (one that’s feasible according to your income and lifestyle) and consistently deposit into that account. It helps to forget it’s even there; that way, you’re not tempted to spend it.
Your savings should never consist only of paycheck leftovers; the key to a stable saving account is separating a premeditated amount as soon as that fresh direct deposit lands. Make a manual transfer or have your bank make the transfer for you to your savings account. Like a plant, you have to water it. By doing so, you’re growing those digits: slowly, but surely.
Also, please avoid credit cards and loans! Try to make the most of what you already have and only use these tools as your last resource, as they can come in the way of your economic goals when misused.
Finally, the tough-love truth is that saving money requires sacrifices. That means, for instance, limiting your nights out, shopping sprees, expensive tastes, and eating out. It may seem harsh at the moment, but your future self is going to thank you. With the money you put away, you can use it as a retirement fund if anything happens. It can help you in case of any emergencies, or even help you get closer to accomplish many goals, such as buying a home, going on a trip, or acquiring a car. Overall, it’s essential to have some form of financial security when no one else can guarantee it for you (regardless of what they promise). Establishing priorities and committing to them is necessary to be successful in your savings journey.
The best thing you can do for yourself and your future is having financial freedom and stability.