A well-organized financial plan allows everyone to get through tough cash flow times. Unfortunately, most of society, although not dominant yet, forgets that saving financial capital is one of the recipes for a good life.
The implication is that people assume that they will have a job for the rest of their lives, forgetting that they may be fired, that they may not find work as quickly as they would like. Investing the capital you have is half the success, the fruits of which you will reap in a few years of life. It is important to understand that investing means paying an advance to yourself.
What is a financial reserve?
Personal finance planning means the rational management of your financial resources, as well as investing and augmenting the funds already accumulated. According to various social surveys, almost half of the population has no savings. On the contrary, practically only 20% of the population have specific financial reserves at the level of two monthly salaries. Which is very important. Society understands well how important it is to save money for the future.
Unfortunately, if you do not have a financial reserve, it is difficult to talk about financial plans that are transparent and rational. When making such plans, it is worth considering various unforeseen circumstances, such as losing your job. It is worth assuming that, having reached the minimum income, you will be able to save a certain amount. It is assumed that this level can be as high as 20%, although sometimes this level can be as high as 5%. If we assume that you receive a salary of 20,000 rubles on your hands, then you can save 1,000 or 2,000 rubles.
These amounts are not exorbitant, but reasonable. Assuming that they will be deposited systematically, every month, then you will receive quite good sums that can be multiplied in savings accounts. One of the undesirable decisions is to put the accumulated funds in a “sock”, unless inflation is alien to you. Raising money on your own is not the best solution for the future. This is due to the fact that it does not bring any benefit and only leads to a decrease in the amount saved.
How to save money correctly?
Savings planning should, first of all, consist in constant control of expenses and reduction of those of them that are not necessary. It is not enough to simply set aside a certain amount in good faith each month. It also needs to be increased effectively. The key to saving planning is cost containment and careful analysis of recurrent costs. Perhaps you will find something really unnecessary, even changing the mobile operator may be beneficial, or reducing the amount of electricity consumed.
Of course, there is no need to get paranoid and limit your pleasures. However, managing money wisely will benefit. It is necessary to analyze the costs that you have to bear in connection with your own functioning, for example, bills, etc., as well as those costs that do not need to be incurred. Then you get a picture of where you can save and where you can’t.
Where to invest your savings?
One way to save money is to open a savings account. Such an account gives you the ability to make transfers and control the account balance. The interest rate on savings accounts is around 2%. There are proposals when, when opening such an account, the percentage for several months is about 4%. In this case, it is recommended to deposit a larger amount.
This is not a very large percentage, but still there is profit at minimal cost. You also have guaranteed access to the accumulated funds, which you can withdraw at any time. By accumulating money on the deposit, they become frozen for a longer period, and if the contract is terminated, then you lose part or all of the accumulated interest. If you withdraw the accumulated funds from your savings account, you will not lose the money you earned.
The money deposited in a savings account is a small profit, but it has value. The account allows you to effectively manage both your own financial portfolio and allocated funds. The downside to savings accounts is that there are transfer limits. One or two transfers can be made free of charge, depending on the offers of a particular bank. On the other hand, such a solution does not allow for a large number of transfers, which means there is a chance that the accumulated funds will remain on the account longer.
Savings have always been beneficial to a lesser or greater extent. It is worth saving and depositing money, both in savings accounts and in deposits. If you deposit a certain amount every month, then it won’t feel like much. The important thing is that after several months of accumulation, the amount of such contributions will grow to a significant amount, which will certainly affect the feeling of financial security.