Personal budget
Which are the two main divisions that every budget must have?
Inflows(salary) and outflows(expenses) of money
What is a deductible in an insurance?
Is the amount of money that must be paid to the insurance carrier in the event of an accident, so they can pay the remaining amount
Can you spend more money than you earn with the help of credit cards?
No, you'll not be able to pay later
What is an AFORE?
Administradora de Fondo para el Retiro, private financial institutions that manage retirement funds, so when people get old they receive this money that was invested during their whole laboral life.
When borrowing money, is it the best option to have the highest interest rate of the market?
No, if the interest rate is too high you'll pay more for your product. Always look for the lowest interest rate possible.
Why is important to have a budget?
To reach your short, medium and long term goals
To know your real expenses
Help to be out of debt
Which are the most common insurances that people can buy?
Life insurance
Car insurance
House insurance
Major medical expenses insurance
What happens if you only give the "minimum payment" in your credit card debt?
What benefit do you have if you add voluntary contributions to your retirement fund?
They're tax deductible
When investing your money in a financial tool, what is the economic phenomenon that you should keep in mind to obtain the best profit?
Inflation, you must look for an investment that can pay you an interest rate above annual inflation.
How often should you create or review your budget?
At least every month
How can you reduce your monthly payments when you buy an insurance?
If you ask for the highest deductible, you'll pay less when buying an insurance
Which is the investment with almost 0% of failure (no risk)?
Certificados de la Tesorería (CETES). This means lending money to the government, it is very difficult that a government goes bankruptcy and can't pay you later
Who regulates all AFORE institutions?
Comisión Nacional del Sistema de Ahorro para el Retiro (CONSAR)
Private company where you can look for your credit history or credit report
Buró de crédito
What is an emergency fund?
A part of your money that must be saved in case you have an emergency that you need to cover immediately
Is it important to buy insurances? Why?
Yes, for every high-value asset you must have an insurance that helps you in case of an accident. The most important asset is your life.
Is it enough for your finances if you save some money from your monthly income?
No, you have to invest what you save, so it starts growing a little bit
How can you get money from your AFORE account before your retirement?
Two ways: if you are getting married or if you lost your job
Besides banks, which institution can give a mortgage credit to workers?
Instituto del Fondo Nacional de la Vivienda para los Trabajadores (INFONAVIT)
How can you save money from a saturated budget (what you earn is completely spent)?
By analyzing in which areas you can reduce expenses and use that money in other items
What is the greatest coverage that an insurance can have?
Comprehensive coverage (cobertura amplia)
Why is it important to know what's happening in the mexican economy?
This information can affect us directly with our jobs or the prices of the products that we buy
Who chooses my AFORE?
It is assigned automatically but you can change it whenever you want without restrictions. There are 10 AFORE available, where you can choose the one with the best yield
In the operation of credit cards, how many days you have to pay your debt after your "cutoff date"?
20 natural days