Marcio Alaor is an executive with the Brazilian firm Banco BMG, one of the largest financial institutions in the country. Banco BMG was founded 85 years ago and offers an expansive financial products portfolio to its clients. Alaor came to Banco BMG due to his extensive background in finance as well as a well-grounded reputation for excellent management skills.
Recently Marcio Alaor gave tips to his readers about how to go about saving money during an economic crisis like the one that Brazil is currently facing. As the prices of goods and services increase in the country it becomes increasingly difficult to build a budget to accommodate them. Alaor has come up with a set of strategies that he suggests families in Brazil adapt so that they can still save money during these trying times.
His first tip is to know where your money is going. Write down exactly where your money is going and separate it into categories. Being mindful not to miss anything, this will enable the family to see where their money is going and if it is being used wisely. His second tip is to cut all unnecessary expenditures in order to see what can be reduced or even eliminated. Once you see where your money is going it’s much easier to see where money is being wasted. As examples eating lunch out is much more expensive than bringing one from home, and a cable tv subscription can be easily cut. He also says to avoid buying the latest and greatest gadgets when the ones already own fills the same basic functions.
Another tip is to pay yourself first. Don’t wait until the end of the month to put away savings, instead put it away as soon as you receive it. By leaving money around to save at the end of the month the likely result is that it will be spent instead of saved. People should also haggle whenever they can. There is no humiliation in asking for a discount or rebate on the things you buy. If you can pay a lower price for a good or service, why wouldn’t you?
His final tip is to use credit cards moderately. The danger in credit cards lies in the feeling they give that you have more ability to spend than you actually do. This leads many people to being shocked when they open their credit card bill and the amount of credit that has been used is far higher than they thought it would be. Add in the fact that the interest rate on credit cards is generally very high and a person can quickly find themselves in a deep financial hole.
Alaor recognizes that it takes determination to save but the peace of mind that comes from being financially secure is more than worth the effort.