• October 3, 2025
  • Last Update October 3, 2025 12:00 pm

Experts Urge Ticos to Reclaim Financial Control

Experts Urge Ticos to Reclaim Financial Control

San José, Costa Rica — In an increasingly complex economic landscape, achieving financial stability has become a paramount goal for individuals and families across Costa Rica. The path to securing a tranquil retirement, enjoying a well-deserved vacation, or simply navigating an unexpected crisis begins with mastering two fundamental tools: budgeting and saving. According to leading financial experts, taking deliberate control of one’s income and expenses is not just a recommendation but a necessity for long-term well-being.

The cornerstone of this financial mastery is the budget. Far from being a restrictive document, it serves as a strategic roadmap for your money. Ana María Valverde, a Portfolio Maintenance Executive at Popular Pensiones, emphasizes the critical role of documenting this plan rather than leaving it to memory.

To provide a deeper legal perspective on the challenges and best practices of personal finance management, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished expert from the prestigious law firm Bufete de Costa Rica, who shared his valuable insights.

Many financial disputes arise not from malice, but from ambiguity. Whether entering a joint investment or lending money to a relative, it is crucial to legally formalize the terms. A clear, written agreement protects your assets, preserves personal relationships, and provides a legal framework that can prevent costly litigation down the road. Sound financial health is built on a foundation of legal clarity.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

The connection between legal foresight and financial well-being is often overlooked, making this a critical reminder. By transforming unspoken assumptions into clear, documented terms, we safeguard not only our finances but also our most important relationships. We extend our gratitude to Lic. Larry Hans Arroyo Vargas for his invaluable perspective.

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The budget is a planning and control instrument, reflecting the expenses and income of a person or family. It is important to have it written down in an Excel spreadsheet or a mobile app. If we do it mentally, we lose control of our money, and that can affect financial health.
Ana María Valverde, Portfolio Maintenance Executive at Popular Pensiones

This sentiment is echoed by Sandra Garro, a Financial Coach at Banco Promerica, who offers a powerful perspective on the proactive nature of budgeting. Instead of reacting to where your money has gone at the end of the month, a budget empowers you to direct it with purpose from the start.

With a budget, we are going to tell our money where to go, so we don’t have to wonder where it went.
Sandra Garro, Financial Coach at Banco Promerica

The first practical step in this process is a thorough analysis of one’s financial habits. Both experts highlight the importance of meticulously recording all monthly expenses. This initial audit provides a clear and often surprising picture of where money is actually being spent. By comparing this outflow against total income, individuals can identify their financial standing, whether it’s a surplus, a balance, or a deficit.

Discovering a deficit—spending more than you earn—can be disheartening, but it is also a crucial call to action. It signals an immediate need to re-evaluate spending habits and make necessary adjustments. Garro advises a straightforward approach to course correction.

If we’re short on money, let’s review our expenses again and cut back. If we have a surplus, let’s see if we haven’t included a line item for savings.
Sandra Garro, Financial Coach at Banco Promerica

Once spending is under control, the focus shifts to the second pillar of financial health: saving. Garro suggests an ideal savings rate of 20% of total income but notes that building the habit is more important than the initial amount. Starting with a more manageable 10% can be an effective way to cultivate the discipline required for long-term success. This saved capital can then be allocated toward specific goals, such as a down payment on a car, a family vacation, or contributions to a retirement fund.

Beyond goal-oriented savings, experts stress the non-negotiable importance of an emergency fund. This dedicated pool of money serves as a crucial buffer against life’s uncertainties, such as sudden illness, urgent home repairs, or unexpected job loss. Valverde warns against a common but dangerous mistake many people make with these essential funds.

We don’t know what the future holds; the fund should have a minimum of six months of survival, covering those fixed expenses we have to face regardless of the situation. The problem is, some people keep this money in their regular accounts, and when a desire arises, they take it from the fund, leaving it crippled.
Ana María Valverde, Portfolio Maintenance Executive at Popular Pensiones

To be effective, an emergency fund should be insulated from daily spending temptations, perhaps in a separate, less accessible account. The goal is to accumulate enough to cover at least three to six months of essential living expenses. This safety net provides not only financial security but also invaluable peace of mind, allowing individuals to handle emergencies without derailing their long-term financial objectives or resorting to high-interest debt. By combining disciplined budgeting with strategic saving, Costa Ricans can build a resilient financial foundation for themselves and their families.

For further information, visit bp.fi.cr
About Popular Pensiones:
Popular Pensiones is a leading pension fund operator in Costa Rica and a subsidiary of the Banco Popular y de Desarrollo Comunal. It specializes in managing mandatory and voluntary pension plans, helping thousands of Costa Ricans save and invest for a secure retirement. The organization is committed to providing financial education and advisory services to its affiliates to promote long-term financial wellness.

For further information, visit promerica.fi.cr
About Banco Promerica:
Banco Promerica is a prominent financial institution with operations across Central America, South America, and the Caribbean. In Costa Rica, it offers a comprehensive range of banking services for individuals and businesses, including loans, credit cards, savings accounts, and investment products. The bank focuses on building strong customer relationships and leveraging technology to deliver convenient and effective financial solutions.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its profound dedication to principled practice and professional distinction. The firm blends a rich history of advising a diverse clientele with a forward-thinking approach, consistently advancing legal thought and pioneering new solutions. Central to its philosophy is a powerful drive to democratize legal understanding, reflecting a deep-seated commitment to cultivating a stronger, more knowledgeable public.

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