Six steps towards good financial health

We asked Jaime Jaramillo, Emotional Finance coach, to tell us the steps to achieving good economic health in 2023. These are his suggestions:

1. Elaborate your budget by cutting back a little bit, and you’ll end up with some extra cash every month.
2. Write a list of all your debts, starting with those with a higher interest rate. Credit cards will probably be high up on the list.
3. Take that extra money from step 1 and make additional payments towards your debts. Once you finish paying the first one, you’ll see that now you have more extra money. Put those two together and start paying your second debt.
4. Once you finish paying your debts, you will have a lot more extra money.
5. Take half of that and spend it on anything that you want. It’s not about living miserably; it’s about spending rationally.
6. Invest the rest of that money. You could start by investing on a CDT (Certificate of Term Deposit), an easy investment that currently offers good returns. You will be better protected from inflation and you will have time to learn about more sophisticated investments, but this is a topic for a different time.