Natalia de Santiago talks to us about saving, investing and planning, how to achieve a better life through a healthy economy.
Everyone can use a little economic culture…or a lot. It is necessary to know how to manage these matters in order to save what we need to save. Invest wisely and finally Having a good current account allows us to live without problems..The journey from there to riches is a long one. But you start somewhere, says financier Natalia de Santiago, author of ‘Invest in Yourself’, a guide to organizing your economy for a better life. has told us all this and more.
Begea: How can we make economics fun?
Natalia de Santiago: Let’s start by avoiding the technical side and big ‘words’, using everyday quotes and examples from everyday life and the mistakes that we all end up making. No one is immune and laughing at yourself never fails.
B: How would you encourage someone to be consistent in their budgeting? So that they don’t give up at the first opportunity?
NS: I always say it’s about finances. The path is made by walking. It’s important not to try to cover everything from day one and to be realistic. It is better to set a budget above and then adjust it over time. Better than getting involved in an Escorial event and ending up exhausted before you even even started. In the end, it’s like sports. You don’t prepare to run a marathon in one day. But you have to start somewhere.
Natalia de Santiago, author of ‘Invest in you’B: Why is it so important for everyone to know about economics?
NS: Because unless you’re on top of a mountain As long as we live in society We are all active and passive parts of the economy. And who can sometimes ask for more or less credit? Gather some savings Fortunately or unfortunately, our lives and livelihoods are closely linked to our economy and finances.
B: Can you save money by becoming a mileurista or earning minimum wage?
NS: There are times in life when saving a life is very difficult. And many times in life that is directly impossible. But what should not be overlooked is the ability of a few to become many. The advantage of saving is that it is proportional. The less income The less you have to save, the less you have to save. But it’s important to set realistic goals. No matter how small and try to make it consistent
B: What do you think about increasing the minimum wage? Is it as beneficial as some say or as harmful as others point out?
NS: The truth is that the evidence, at least what I’ve seen, isn’t entirely clear. And although in some countries this may have negative consequences. But in other countries, especially the richest countries, But it doesn’t seem to have any negative effects. Finally, I think the same is true of the domestic economy. It is important that the country can afford this additional cost. And it does not mean that its competitiveness will decrease compared to other countries. with cheaper labor This is what happened in underdeveloped countries, countries that happened in the past.
B: Do we need an economic culture in Spain?
NS: A lot, but it’s not just bad Spanish. Financial culture is still lacking in almost every country.
B: Should Home Economics be trained in schools?
NS: Of course. It will save us a lot of unnecessary disappointment and errors.
When it comes to saving, you need to set realistic goals.B: What are the important things in spending? And what expenses should we reduce as much as possible?
NS: The important thing is to start cutting the parts that are least involved. Optimize commissions Finance costs, insurance, contracts, and everything else that doesn’t make you happy. There is no need to start cutting for happiness. The ideal is to save as much of these expenses as possible so that we can spend more on the things we enjoy most.
B: As a mother of five daughters What would you say to people who want to have children but are afraid to take the step because of financial issues?
NS: I always say that if I finish my math then I have to give some back. But the truth is that although children are expensive, it’s all about management. And above all planning, planning, and planning again so that things don’t happen, we’re surprised.
B: Which is better to buy or rent?
NS: Rely on it. In general, buying is a great way to save money in retirement. But what if you will be living in the home for a few years? Renting tends to be more cost-effective. It is important to be clear that buying is not always better. And we should only buy houses that we can afford.
B: Do you find any flaws in the mortgage law?
NS: I believe there have been very important efforts to change the course of the situation since the last crisis and to finance mortgage lending more cautiously.
B: Is it worth amortizing the mortgage by taking installments or annual withdrawals?
NS: In general, if you can’t afford to pay too much in installments. The best way is to reduce the number of years because this way you will pay less interest.
B: What investments do you recommend for small savings?
NS: As Warren Buffet said, I recommend investing only in financial products or financial instruments that we understand well. By always knowing what risks we are facing. And what rewards can we expect? If we’re not sure what we’re doing It’s better than doing nothing. As always, good advice was given.
We must never forget that we should only buy houses that we can afford.B: Are there reliable investment companies for small assets?
NS: It exists, but we have to search carefully and make sure we fully understand what we are dealing with and the risks we are taking.
B: How can we avoid being tricked when transferring money?
NS: Ask, compare and make good recommendations. And as I said, if in doubt it’s better than nothing.
B: You would never invest in anything. And why?
NS: In principle I don’t invest in the short term. Thus saving yourself from a lot of problems.
B: What do you think about Bitcoin?
NS: Bitcoin is a technological breakthrough and an alternative payment method for me. It seems like a groundbreaking invention that will change many things. But viewing it as an investment is dangerous as it is very volatile and high risk. Anyone who decides to purchase Bitcoin must fully understand the risks they are taking.
B: Is it a mistake to have a lot of savings in the bank without moving?
NS: no mistakes It is true that savings in banks lose value with inflation. But now inflation is very low or even negative. At least it hasn’t lost too much value. What there is with money in the account is the opportunity cost of not investing in something that might be more profitable. But in the end Investing is always a risky choice. Not an obligation
B: Can we really trust the bank? Or will we always view them as ‘bad people’?
In general, We can trust each other. We shouldn’t destroy this sector either. But we have to realize that they are ultimately selling us a product. And perhaps the adjacent bank has a more competitive bank. You must know the information well, ask a lot, and compare. And above all else Never hire anything if you don’t understand all the details.
B: Should everyone have a pension plan?
NS: Everyone should save for retirement, right? Each person then selects the savings or investment product that best suits their needs and investor/saver profile.
Everyone should save for retirement.B: When should we consult a tax or financial advisor?
NS: Whenever we have questions Getting good advice is never a bad idea.
B: We have met the Ministry of Finance. Should the exemption criteria be increased when filing the declaration for taxpayers who have been or are currently in ERTE?
NS: I don’t interfere there anymore. I believe that the necessary measures should be taken to support the most affected sectors and workers.
B: Does Spain pay enough taxes?
NS: It depends on whether the personal income tax is relatively in line with other European countries, and then there are other tax figures. that still have higher profit margins, such as environmental taxes
B: Do you think there are or have been good public economic managers in Spain? Does anyone think of it?
NS: In Spain there are people who are very good for everything. But I prefer to look to the future rather than question the past.
B: Who do you think manages the economy better when they govern? Right wing or left wing?
NS: I believe that both ideologies are consistent with good economic management. And good ideologies also have bad ones in every aspect.
B: End…does money really make you happy?
NS: Maybe not, but what can help?