Buenos Aires, April 7 (NA) -- The CPI increased by more than 32% in one year, according to INDEC, and just as many tenants will see this reflected in their rent payments, mortgage debtors will feel it in their installments. The issue is no longer to compare these impacts with the salary increase over the same period, but with the effect they will have on each person's purchasing power, according to data collected by the Argentine News Agency. Because with the same income, one must face the growing percentage taken by public services and transportation, and even worse, the financing at high interest rates to which more than half of those earning a salary must resort to cope with a monthly burden that becomes increasingly unattainable, be it personal loans and/or credit card payments. Chasing indexations was what those who also had their incomes pegged to inflation used to do, either through collective bargaining agreements for registered workers, or through fee adjustments, in the case of self-employed professions and trades.
The Government of Javier Milei cut that circuit, and the race became uneven, which resulted in delinquency rising to 12%, within a framework of indebtedness that exceeded 60%.
Adjustment in contracts Regardless of what the increase index was for contracts, the challenge now is how to anticipate it and manage money to avoid the impact from abruptly affecting the monthly budget. Some users of digital wallets have started to set aside a monthly amount and channel it into a Common Investment Fund (FCI), which offers daily returns and immediate liquidity. This alternative allows the money destined for the next increase to generate a return while remaining available for any eventuality. In three months, the income generated by those "advanced" pesos for installments or rent compares with the adjustment for inflation, in any of its forms. Assuming a monthly payment of 650,000 pesos, in a quarter it would add up to almost 2 million, which would adjust by 3% each month, which in three months would represent almost 10%.
Common Investment Fund A well-managed Common Investment Fund can generate a similar return in the same period and, even until last month, the interest rates themselves, being positive regarding the evolution of the CPI, would allow a fixed-term deposit to also match the increases in monthly housing-related obligations. "The moment of the update should not be the day we start thinking where the money is going to come from. When the date of the adjustment is known, one can work in advance so that the impact is gradual and not a sudden jump in personal finances," explains Vanesa Di Troilo, Business Manager of Reba, the financial entity authorized by the BCRA. "FCIs work as a dynamic reserve fund: the capital can remain invested until the moment of the rent update and be withdrawn when needed. The key is not to leave the money idle in the account, but to assign it an objective and put it to work from the first month," she adds. For increases that are already detailed, the FCI is usually more useful, but when the challenge is the renewal of the contract (which may involve a deposit, stamps, commissions, and several months of rent together), the horizon changes. There, the Fixed-Term Deposit (Plazo Fijo) presents itself as a tool aligned with a concrete goal and a specific date. "If we know that the contract expires in 2026, we can structure a scheme of successive fixed-term deposits until the moment of signing. Reinvesting the capital along with the interest allows one to take advantage of compound interest and arrive at the renewal with a stronger base," explains the specialist.
Expenses and services In addition to rent, there are other expenses that pressure the monthly budget, such as maintenance fees and services, whose values may vary. Faced with this scenario, some clients of digital banking and fintechs have adopted the habit of allocating those amounts as soon as the salary is credited to be able to set priorities and have clarity about the money available for other consumption. Faced with frequent adjustments, anticipating dates and defining objectives becomes crucial to maintaining personal financial balance.
IP Setting aside savings in time and choosing the right instrument according to what you want to achieve: whether it's liquidity for updates or a defined term for contract renewals, can make the difference between facing an increase with tranquility and foresight or with stress and budget imbalance. Agency NA
