Silvana Saldisuri
04/14/2021 6:01 AM
Clarín.com
Services
Updated 04/14/2021 9:57 AM
Managing personal finances well
and maintaining a good economy creates peace of mind, particularly in times of crisis and uncertainty.
This stability can come through saving and investment, two concepts that are linked but are understood differently.
What each one means and which one is best
to make the money work.
Saving and investing
are responsible decisions for our finances in the future, but to know which one suits us, it is first necessary to know the meaning of each of the words, recognize the difference and the connection between the two.
The
savings
is the difference that
exists between the
income and expenses
that gets a person or family within a specified period.
Specifically, the year in which a person adjusts his expenses in such a way that they do not exceed his income.
Investing is better than saving, since that way capital is increased.
Photo: Clarin Archive.
The end of this surplus can have different destinations.
They are generally associated with a future expense, such as a trip for example, or a provident fund for eventual emergencies or extraordinary expenses.
On the other hand, an
investment
, although it begins in the same way as saving, once that surplus is achieved, the objective is to
increase it
.
Specifically, it is the exercise by which a person renounces current consumption in order to obtain future benefits.
"Saving money without putting it to work, in an inflationary country like Argentina,
does not make sense
. The idea is that one saves and invests that money to have more purchasing power and thus consume more in the future," explained
Clarín
el finance analyst and Head of Research at Inviu,
Diego Martínez Burzaco
.
Still money runs the risk of losing its value over time.
Photo: Reuters.
For his part, the financial analyst,
Nicolás Lo Valvo
, from Balanz Capital indicated that "the big mistake is to think that just by saving, you are investing. The money still runs the risk of
losing its value
throughout the time. There are different variables that can threaten our savings ".
"Locally, inflation and the depreciation of our currency against the dollar are the main enemies. However, there are different tools that people can count on to preserve the value of their savings and even increase them," said Lo Valvo.
Considering both concepts, it can be concluded that
investing is better than saving
.
So now the question is: how to do it?
You can invest money in different areas, through the acquisition of a house, starting a business or buying financial products.
Accessing this world is possible for all types of profiles, from those looking for a low risk to those who want to have a higher percentage of return, which will be achieved by taking more risks.
Here are some recommendations to consider:
Make a budget
to know how much money can be invested
Set a goal and the deadline
to achieve it
Research and compare the financial products
in which you can invest: characteristics, return, return and risk.
Diversify the money
.
Placing savings in more than one financial product thus reduces risk.
Before putting the money to work, it is also advisable to
go with an independent financial advisor or a market intermediary
(it can be a bank, a brokerage house, among others), who will make a diagnosis of the type of investor that one is and will establish the goals depending on the deadlines or age depending on who.
To invest
, it is also important to clarify that you
do not need to have a large amount of resources, you
can start with up to $ 1,000.
Investment options in pesos
"
The savings bank does not save
. The most basic investment is to invest the pesos destined for monthly expenses in a
Money Market Fund
. It gives savers the possibility to protect the value of their money with the possibility of withdrawing the necessary funds in the same day, without subscription or redemption costs. This strategy would work for the client as a remunerated savings account, "explained the Balanz Capital analyst.
Dollarizing the pesos is a good option.
Photo: Clarin Archive.
Meanwhile, he suggested that for those who need to have pesos in the medium term and want to invest them with certain coverage, do so, either through
Inflation Linked
Funds
or via
Dollar Linked Funds
.
In this way, yields similar to or higher than the inflation rate and coverage against the devaluation of the official exchange rate will be obtained, respectively.
Both strategies are ideal to combat the main enemies of savings.
Another option is what
Cedears
, equity instruments that represent shares of companies listed abroad.
"The most interesting thing is the coverage provided by these instruments when following the
fluctuations of the dollar price
with settlement. Today there is a large volume of operation of these certificates, even more than local shares, which guarantees good liquidity It is ideal for those investors who want to achieve great returns avoiding local risk when investing in first-line international companies, "said Nicolás Lo Valvo.
For Martínez Burzaco, in the very short term,
inflation will continue to beat the official dollar
, "therefore adjusted in that sense, I recommend investments in bonds adjusted for short-term inflation, within what is the sovereign bond curve of the Argentina, "he says.
"Inflation will continue to beat the dollar," the specialists explain.
Photo: Clarin Archive.
With a more medium-term vision, Martínez Burzaco recommended diversifying, also opting for Cedears in the Argentine market, which are attractive due to the variety of companies that are currently listed, and additionally the cash with settlement that is at a low and stable price and is going losing against the advance of inflation.
"
It is a good opportunity to dollarize with pesos,
" he stressed.
For the finance expert, Nicolás Lo Valvo,
another serious mistake made in Argentina is to think that buying dollars is investing
.
"No currency in the world is safe from variables that can depreciate its value. It is true that positioning itself in dollars is a safeguard against the loss of value of our currency."
"However, as a result of the brutal monetary issue that the US federal reserve is making to counteract the consequences of the pandemic, the dollar is devaluing against other currencies or commodities. Today, the dollar is at its lowest level since 2018 and it is expected to continue depreciating, "he said.
Dollar investment options
In the current context locally, it is convenient, with savings in dollars, to position itself in Argentine corporate bonds in said currency.
"There is a range of opportunities in the short and middle part of the curve. We found excellent loans with yields between 4% and 6% on companies like Arcor 2023 or Tecpetrol 2022 for the most conservative clients and yields between 10% and 17 % for those with greater aversion to risk on companies such as Transportadora Gas del Sur 2025, AES 2024 or Genneia 2022 ", highlights the analyst.
"In summary,
the difference between saving and investment lies in increasing the value of capital
. To achieve this increase you have to invest intelligently. First, using tools to protect savings. Second, finding
instruments according to our profile that not only protects but also generates income on our capital
", he concluded.
LN
Look also
How to improve personal finances: the 5 most common mistakes that destroy our economy
From chests to cryptocurrencies, five effective methods to protect the dollars that are in the "mattress"
