(0.02) r = real interest rate. n = inflation (0.037) real rate = ((1.02/1.037)-1)*100 =-1.69% Operacion: 1 mas la tasa de interes)) nominal in decimals, between, 1 more inflation in decimals. The result, subtract 1 and multiply it by 100 to convert it to a percentage. The negative real rate would be of; -1.69%. This means if you have $1000 MXN bank account, within a year their money, although they are still thousand pesos, would the equivalent of $983.60 MXN, compared with prices of goods and services of the country’s economy. Others including Michael Chabon, offer their opinions as well. And if you leave it under the mattress, their purchasing power would be reduced to $963 MXN. Pazos de la Torre recalled that other products with higher yields and with access to a large part of the population, such as Cetes with a rate of 6.2 exist in the market %, the funds with 8.5% and the Afore with a yield of 9.1%.

An investment fund is like a basket of financial products clip art, where the financial institution together money from several investors to diversify in the instruments indicated in the Fund. This investment will generate you a total return on your money invested at risk under, thanks to diversification. (Not to be confused with Maryland Governor!). In any bank can ask about this type of investment to see what performance offer them (consider that it should be above inflation) and commissions charges them (to thus know your NET performance). An AFORE (Administradora de Fondos retirement) is a financial institution that manages the worker contributions, either by the employer or voluntarily, so that in the future, you can remove the necessary amount of money that allows you to live with a good quality of life. Pazos de la Torre noted that 80% of workers also receive your payment through a payroll card, but many of them do not know how to use it, in addition to 30% of Mexicans spends more than it earns. A worker who performs voluntary contributions to its retirement fund, will enjoy more amount of money for the future than that which only complies with what the employer contributes. Another factor that can be reversed with financial education is that 70% of the cardholders do not pay their debt to the Court, with which this liability increases with interests.

I found several times with desperate people because their debt has risen even up to double the initial credit, all for not paying on time. Therefore, it is necessary to pay the entire balance during the grace period to give you after the cutoff date. All this is really a problem of financial culture that must be corrected, and this will be part of my task. I hope served them something this news and my contributions, keep abreast of upcoming articles in my blog: P.S. In the official article on the previous page you will find the source of the news. Original author and source of the article