Indebtedness has become like the black plague of modern times, since it slowly eats the economy of families and not allowed to prosper materially. What is surprising is how this evil also affects more than one third of the younger population. According to a survey conducted in Chile by the National Institute for youth (INJU), 1.237.191 young people between 15 and 29 years presented some level of debt in our country, which corresponds to 33.18%. This alarming number must be added the fact that 72% of young indebted people use financial instruments including credit cards of department stores, which are known for their higher interest rates, occupy almost 70% of use. The document presented by the INJU CITES: despite their juvenile status and the meagre sources of income, financial institutions have defined young people as clients, managing to put their products in almost half of the young population (48.4%) (source:)). The first reaction that cause these unpublished figures is amazement before financial institutions, which apparently have no boundaries to offer their products and are aimed at University students to have, in the near future, a percentage of customers called young professionals. However, blame financial institutions by the State of the slowness of our young people is like trying to blame weed for a poorly done planting.
Youth debt goes far beyond the lack of ethics of financial institutions. The underlying problem is the poor financial education of these young people. In addition, it is not a problem inherent to the young sector of the population. The vast majority of adults also show alarming debt levels, regardless of their level of education. The reasons for such indebtedness are diverse and his justification goes beyond the purpose of this article. However, I want to mention one of the most common reasons of today’s consumerist society: the desire to own goods and services that have a cost greater than your income level and has prevailed on self-discipline and the application of wise money management basics.
CREATING value from the Finance Department (generate benefits: LA direction financial or the TREASURER) when a Chief Financial Officer or Treasurer, takes care of his Department, he faces perhaps the tedious task of being a tool to be used by the company, feeling that they have placed it as side-effects of the business, and even being sometimes the bureaucracy required and obligedparallel to the main activity of the business. Our proposal is that this can change radically, if we conceptualize our Department, as a generator Center for benefits, and that power and increases business opportunities. We propose to transform ourselves from pointer into the scene, necessary and important actor. Because. What is more important, money or have money… PLEASE!…
Financiers already know to make money, not necessarily equal to having money in the company. And when we say have, indicate not having in excess (idle money), but taking the minimum (JIT), have external financial credibility, to possess additional borrowing capacity. CHECK-LIST of concepts needed to start the transformation: A better financial image perceived by third objectify, manage and achieve reductions in financial costs objectify and achieve reductions in administrative costs establish real control over financial institutions encourage the continuing education of the staff achieve performance as a team, the Department determine the internal client, and the Protocol of their treatment enhance ownership and knowledge of related software and especially financial simulators. Innovate, a magic tool to see comments from the check-list, simply tell me your mail.
The effect snow ball to nobody is a secret that we live in a consumer society. And many times this consumption comes from the lifestyle we carry, which is usually the next labour spending sleep work spending sleep. Does this sound familiar? It is what the Americans call The Rat Race or the race of the mouse; It is that wheel where we see many mice of laboratory roll day after day, no more nothing to do, caught in that circle without end that denotes, in many cases, desperation. Financially, our race of the mouse are the debts and interests, especially credit cards. In the book The Total Money Makeover, Dave Ramsey talks about the steps one must follow to be financially stable. While many things apply to what you preach in the blog (like for example the Emergency Fund, which is 1000 $ for Dave Ramsey) her book is focused on people living in the United States, where taxes, IRS 401k, Roth IRA are common terms but for Latin America are not applicable.
However, your debt snowball if it seems interesting to me. According to Dave, to apply the debt snowball (translated as snow ball debt) should: 1. enlist all our debts (excluding mortgages) lower amount to greater amount of debt. 2 Pay the minimum on all debts except which has the lowest balance. 3 Deposit everything you can, until the smallest amount (if a single banknote or coin, serves!) to the smallest debt. 4. When you are done paying the smallest debt, does not alter the amount that you use to pay debts, but that process begins again, paying the minimum on all debts less in the queahora occupies the place of being the smallest debt. This method generates controversy, because it does not attack the problem of interests; You can be paying a small debt that has less interest than the big, such as a credit card, for example.
Thus, the Argentine peso joins the rest of the Latin American currencies that will remain under pressure in the coming months. They will continue under pressure the currencies of the region? Can be expected that the Latin American currencies continue appreciating against the dollar? Beyond continuity expected in the flow of capital into the region (which can even be accelerated before the improvement expected in the context), there is an element that will generate them more pressure in the coming months and is linked to the management of international reserves of China policy. From the Government of China there is convinced about the need to increase the participation of other currencies within the composition of international reserves to reduce its exposure to the U.S. dollar. In this way, both the euro and the yen are the two currencies that have all the chances to increase its percentage in the total number of China’s international reserves. To have a idea of the extent to which we are referring, is worth mentioning that by the end of September, China had international reserves by US $2.27 trillion, with a high percentage of them denominated in U.S.
dollars. And the American currency has already felt the impact of these rumors. Zhou Hai, China’s Central Bank yesterday believed in Financial News: euro and yen holdings should be increased to reflect the growing trade with the European Union and Japan. The dollar felt the impact in yesterday and stood at its lowest level in the past 14 months in 1,5061 towards dawn, the euro then immediately revert to climb to its highest level in a week coming to the 1,4844 per dollar. Which generated fall in commodity markets and boosting the low stock yesterday on Wall Sreet. The U.S. economy nor offers solid grounds for thinking that the dollar can recover value in the coming months, by what its relationship with Latin American currencies will continue to weakening. Different elements of the international economic environment are key to being able to anticipate and predict where the Latin American currencies will behave.
Much can and can anticipate the markets be earn? Possibly much, but to do so, it is necessary to possess at least minimal knowledge of economics. It is for this reason that Latinforme has launched the course of basic economics for investors, in which the main elements of the economy with practical application in the determination of the investment decisions are reviewed. We find again tomorrow, Horacio Pozzo investment opportunity to seize this decline on Wall Street to buy. How did the subscribers of our newsletter of investment overall value, than already recovered its cost by investing in companies that we recommend. Do you want to know what? You can try entering here to find out and start investing in our recommended actions. Soon to come out in November! For subscriptions please click here Alternatively write to us at for more details.