In a country with constant high inflation throughout its history, what is most sought is to ensure that the money saved conserves its value over the years. In this article you will be able to see conventional and not so conventional ways to save money.
Method 1 of 4: Put Savings on Fixed Term
Step 1. Collect money
In order to start a fixed term, banks usually ask you for a minimum amount of one thousand pesos. This can certainly change according to the financial institution and the country's inflation. There is also the possibility of leaving your capital for a longer time with periodic interest payments, that is, every month the bank pays you the interest, but retains your initial capital until the stipulated term is met.
You have to know that to make a fixed term you will have to leave your money in the bank for at least 30 days. If you need to withdraw it before, not only are you not going to charge the interest that the bank offered you, but you are going to have to pay a surcharge. So it is advisable that you think well before making the deposit
Step 2. Find the best interest rate
The interest rate is usually related to the intention of the Central Bank of the Argentine Republic (BCRA) with regard to its monetary policy and the will to attract deposits that private banks have.
- This is why you have to see which bank offers you the highest interest rate. Certainly the longer you deposit your money, the higher the rate will be, but you must evaluate if it is convenient for you to leave the money for a long time or if you renew it periodically.
- Also consider that if a bank puts an interest rate much higher than that of the rest of its competition, there may be risks that it will not be able to pay and you will not receive your money.
Step 3. Make the fixed term
When you have found the bank that offers a rate that you find attractive and offers you the security you want, make the deposit. If you have an account in that financial institution, you will be able to do it on the web, if you do not have an account you will have to go and create one.
Once you have an account at the bank, you can do it through the teller window or on the computer
Step 4. Renew the fixed term together with the compounding
When the time of the fixed term expires, the money will be deposited in your bank account if you wish, or else you can have it renewed along with the interest you have earned or without the interest.
In this way, if the fixed term grants an interest rate that accompanies inflation, you will not be able to lose purchasing power or even obtain a profit
Method 2 of 4: Buy Currency
Step 1. Review and study the quotes
As the Argentine peso has a reputation for losing value over time, many Argentines choose to buy currencies from another country. If you decide to do this, you should choose the currency of a country with economic stability in order to protect the value of your money.
- Look for hard currencies like the dollar, the euro, the Chinese yuan, the pound, etc.
- Find out how its historical oscillations have been with respect to the Argentine peso and evaluate if the current price is attractive to buy or if it is convenient to wait.
Step 2. Decide which currencies to buy
After you have made your inquiries, go to a bank or an exchange house and buy. If you have a savings account in the foreign currency that you are going to buy, you will be able to make the transaction from your computer and it will be credited to your bank.
It is recommended that you diversify your currency portfolio. This is to reduce the risk and, in the event of a fall in any of the currencies, that the impact is less
Step 3. Buy the currencies
When you have the currencies you can either treasure them, taking them out of the market, or use them to continue investing.
- If you keep investing, you will be able to not only maintain its value but perhaps increase the value of the money you had.
- You can invest in a fixed term in dollars, for example, although the interest rate will not be very high, it is better than having them under the mattress. Or maybe buy dollar bonds that pay periodic dividends
Method 3 of 4: Save Through Capital Assets
Step 1. Find assets that hold their value
You can find many goods of very different prices, real estate, cars and machinery are usually the highest priced. But there are also capital goods for a smaller portfolio. The best known examples are construction tools or a sewing machine.
Keep in mind that tech items lose their value in the short term, but vintage items are prized by collectors
Step 2. Buy capital goods
When you have found the goods that suit your budget and your future valuation analysis, buy them.
These goods will appreciate against the Argentine peso at the rate of inflation, so you can keep the value of your saved money until you decide to sell them
Step 3. Sell them when you need your savings
This way you will be able to have your savings again and spend or reinvest them in another area.
How long it takes to sell it will depend largely on how much the capital asset costs, but try not to rush by offering it at a low price, in the end they will continue to hold value until you sell them
Method 4 of 4: Invest in Bonds and Stocks
Step 1. Study the financial market
Before deciding to invest in the stock market it is important that you advise yourself well. You must evaluate the risk each title presents and see if you are willing to do that.
- In general, public securities have a low risk because it is difficult for a country to default.
- If you want to save at a higher risk you can invest in stocks.
Step 2. Create your portfolio of stocks and bonds
The safest strategy for an initial investor is to diversify your portfolio, preferably in bonds. You can add stocks too, but the risk will increase.
- You can have a professional manage your money, better known as a mutual fund. Where, based on the market context, they ensure you get an interest percentage at a certain risk.
- The return on mutual funds tends to exceed inflation, so your savings will not only be maintained but will increase.
Step 3. I received dividends
Of the many types of securities, several pay periodic dividends to holders. You can take advantage of these dividends to continue buying stocks and bonds.
Or you can take them out of the stock market and use them for other investments. As long as you can capitalize on your earned interest, it will be more profitable for you
Step 4. Sell your titles
When you consider that they are at a high price or when you need the money, sell them in the market.