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How are you going to scale back your private bills in a month?

82% of Mexican men and women find it difficult to meet basic expenses and pay their personal bills. Regardless of whether they support their family or not.

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24, 2020

5 min read

This article has been translated from our Spanish edition using AI technologies. Errors can occur due to this process.

The opinions expressed by the entrepreneur's contributors are their own.

Track your expenses. Check your receipts for services and bank statements. Ask for feedback.

82% of Mexican men and women find it difficult to meet basic expenses and pay their personal bills. Regardless of whether they support their family or not.

According to a study by the financial product comparison platform, 8 out of 10 Mexicans between the ages of 18 and 54 ensure that they have personal and household expenses on a monthly basis.

It is “a little difficult” or “very difficult” for both women and men in this age group to pay for basic services such as water, electricity, gas and internet as well as other fixed costs such as credit cards, personal loans or batches with your electricity income. This regardless of the number of economic dependents. Even if you don't have it.

“There is a belief that singles have a more comfortable and healthier financial situation. However, those who do not have financial dependents face difficulties despite having fewer responsibilities. This is partly due to the current economic outlook, but also a lack of attention to money leaks, ”says Sebastián Medrano, director of Coru.

These "ant costs", which you automatically incur as part of your daily routine or which are small but constant – the "phantom costs" – make up to 12% of the annual income of an employee from financial service users, according to the National Commission for Protection and Defense ( Condusef).

Realizing these types of expenses in your life is the first step in having healthy finances and getting through the fortnight without any problems. We know that being a self-awareness exercise can be difficult. That's why Coru has some tips to make this task easier:

Track your expenses

Did you give some coins to a street musician? Did you buy chewing gum at the traffic light? Do you have a subscription to one or more streaming platforms? Write everything down. For a fortnight, write down all the expenses you make, no matter how insignificant they may seem: from the subway ticket to the Uber trip to paying for basic services. At the end of the two weeks, identify your unnecessary expenses and limit them for the next two weeks. You will be amazed at the difference these small expenses make in your fortnight.

Check your receipts for services and bank statements

Sometimes memory goes down and you forget about the services to which you are subscribed or even that you don't know what you are paying for. Review your bank statements in detail, as well as internet or cable TV receipts, to identify the subscriptions and fees that you no longer use, as well as insurances and plans or services that you did not know you were contracted to. Avoid testing periods or don't forget to turn them off when you are using them.

Ask for feedback

Image: Charles Deluvio via Unsplash

Recognizing ant expenses in your daily routine can be a very difficult task, especially since you do it automatically without thinking about it. Seek help from a friend or relative who you live with regularly. This way you can analyze with different eyes whether an output is normal or think about whether an output is normal or actually unnecessary. For example, in connection with the COVID-19 pandemic, high-speed internet service may be required for either work or school reasons. However, if you don't work at home or live alone, it can be an excess. Remember, this exercise does not get angry, it is only there to help you.

Put things in perspective

Once you've identified the expenses, do the math. How much do you spend a fortnight on coffee and chewing gum? How much of your fortnight is paid for streaming services or subscriptions that you no longer use? For example, if you have the most basic memberships for streaming audio and the top three online video hosting sites, you're spending nearly 6,500 pesos a year, which is the equivalent of an all-inclusive in Cancun for four days in a 4-star hotel.

These tips will improve your finances in the short term. However, in order to achieve financial stability and security, it is ideal to supplement them with a budget as well as a savings plan.

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