Javier Cuervo, Business professor: “You have to hunt down the two biggest enemies of your wallet”
The expert urges people to pay attention to so-called “ant expenses” and “phantom expenses,” which quietly drain our finances without us even noticing.
After a Christmas season marked by excess, both in food and shopping, January arrives with its well-known financial slump. For many people, it is a tough hill to climb, especially when money is already tight. On top of regular expenses such as electricity, gas, or mortgage payments, unexpected costs can also appear.
A large portion of household finances goes toward many small expenses that, if eliminated or reduced, can make a noticeable difference by the end of the month. For Javier Cuervo, a Business Administration professor at UNIE University, this is crucial. “The key to getting by without borrowing money is to become a detective of your own finances, shut off the invisible tap, and hunt down the two biggest enemies of your wallet.”
First, the expert refers to what are known as “ant expenses,” small daily purchases such as a mid-morning coffee or cigarettes that seem insignificant but, taken together, add up to a substantial amount. The second type is “phantom expenses,” which include things like “forgotten gym memberships or streaming subscriptions you no longer use, but that your bank keeps charging you for quietly.”
The temptation of sales
Despite financial strain, January also brings the traditional post-holiday sales, making it hard to resist the temptation to buy something. Often, however, these deals are not as good as they appear. We see a discount and immediately assume it is a great opportunity. In situations like this, experts recommend staying calm.
How can we do that? By following the so-called 24-hour rule. The idea is simple: give yourself 24 hours to think before making a purchase that is not absolutely necessary. This helps prevent impulse spending and puts reason, and household finances, back in control. “Spending a day thinking about whether we really need what we want to buy helps us distinguish between a real need and a whim that can be postponed,” explains economic expert José María Camarero to COPE.
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