Financial risks, why it is important? Anyone who has money or property is at risk. It is impossible to predict the vicissitudes of fate, but to soften her blows, to think about your financial security in advance and to play safe is real.
Meet this is Stepan. He learns from his mistakes. On his example, we will see what problems everyone can face and how to avoid them.
The first risk. Something happened to Stepan.
Troubles at work & Financial risks
Stepan is a successful sales manager. He always carried out the plan and received good bonuses for it. He paid for renting an apartment, went to restaurants, had fun on the weekend, traveled a lot, and refused nothing to himself. Once the director announced to the team that he decided to close the business. Everyone, including Stepan, has been working for the past week. So Stepan was left without a job and a good salary. He had no savings, so he had to abandon his rented apartment and look for a new job, sitting on his parents’s neck.
Health troubles & Financial risks
Time has passed. Successful sales manager Stepan was in a hurry for a new job. An important client was waiting for him, he had to be impressed. Stepan put on his best shoes, ran out of the entrance, stumbled and broke his leg. The operation could be done free of charge by compulsory medical insurance , but doctors recommended an expensive operation that would help reduce recovery time. Stepan did not have VHI, but he agreed to return to work faster. As a result, he spent two weeks in the hospital, and then another month and a half – at home.
Stepan’s income over the past two months has decreased by more than half. He had a short work experience – less than 5 years, so only 60% of his average earnings for the previous two years were paid to him on sick leave.
What did you have to do?
So that troubles at work (salary reduction, dismissal) or illness (your family or friends) do not unsettle you, it is important to have a financial airbag. Ideally, it should be equal to about five salaries. Additionally, you need to insure yourself and your life at least from accidents – this way you can significantly reduce the cost of treatment.
The second risk. Something happened to Stepan’s money or property.
Since then, Stepan has become smarter: he began to save money and even bought a car. On a September morning, he left the house and did not find the car in the parking lot – it was stolen. Stepan saved that when buying a car, he issued a hull. Soon he was paid the full amount of damage.
He decided to invest this money in the purchase of an apartment in a new building. But later it turned out that the developer was unscrupulous, and the house was not completed on time. For Stepan, this turned out to be three years of waiting for the apartment and additional costs.
When the apartment was still completed, our hero decided to rent it. Everything was fine: extra income and quiet residents who agreed to settle without a formal contract (so Stepan decided to avoid paying tax). One night, neighbors in the same apartment phoned Stepan – it turned out that his tenants flooded them. Arriving at the place, Stepan discovered traces of the flood in both his and his neighbors. The tenants refused to pay the damage, and Stepan was not able to bring them to justice, as the lease was not concluded. All the costs of repairing apartments – both the neighbor and his own – Stepan had to take on.
What did you have to do?
Economists recommend not storing large amounts in one currency, but distributing them proportionally in rubles, dollars and euros. The difference in rates in one way or another equalizes the amount of your savings. It is even better to open a deposit – the interest rate will help reduce the impact of inflation. At the same time, it is most safe to store no more than 1.4 million rubles in one bank. This amount will be able to be quickly returned if the bank’s license is withdrawn .
How to save yourself from financial risks
There are a few simple rules to follow:
- Do not neglect insurance . A car, an apartment, your own health and the health of your loved ones will be safer if you take care of their safety in advance.
- Think of a financial airbag. Ideally, these are five of your usual salaries. There is another way to calculate. Make a financial plan, find out how much money you need every month, and multiply this figure by six. So you accurately determine the amount with which you can feel more or less calm.
- Use financial instruments. Interest on the deposit compensates for losses due to inflation, cashback cards will help to return part of the spent. Separately explore the possibilities of an individual investment account . Find out in which cases you can get a tax deduction .