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Money for rainy day: whether to save money and how to do it?

to save money

To save money: Any person should have a certain supply of money. It is called a financial airbag and is necessary to address unforeseen issues that require costs. These include, for example, costly treatment, job loss, vehicle breakdown, the need to pay a fine, and more.

Money for rainy day: whether to save money and how to do it?

WHAT SHOULD BE A FINANCIAL AIRBAG

It is generally accepted that the amount of such savings should be no less than the average household expenditure for a six-month period. At the same time, a number of requirements are imposed on a financial airbag:

  1. This money should be inviolable, and it should be used only in emergency cases. Spending deferred funds, for example, on a vacation or buying a new iPhone is fundamentally wrong.
  2. Money must be affordable. This means that real estate, jewelry or a car cannot be considered a financial airbag. To turn into money, you first need to sell them profitably, but this takes time. In an emergency, it may simply not be.
  3. Money set aside as a financial airbag should be well protected. Otherwise, you can stay without them.
  4. The created stock of funds needs to be regularly replenished. An amount equal to family expenses for six months is the standard size of an airbag. The more money you can save, the less noticeable financial problems will be for the family budget.
Money for rainy day: whether to save money and how to do it?

HOW TO SAVE MONEY

To start saving money, you need to take a few simple steps:

  1. Calculate your average monthly expenses, including utilities and food.
  2. Lay in the size of the airbag. For starters, it can be equal to expenses for a three-month period.
  3. Set the size of monthly deductions. It should not be less than 10% of the average monthly income. The optimal figure is 30%.

A few additional tips:

  • In order to create a financial airbag faster, you need to minimize costs. For example, refuse weekly trips to cafes or taxi rides.
  • Impulsive purchases should be completely eliminated. Unplanned expenses are rarely useful, but they can make a serious breach in the budget.
  • It is necessary to clearly record not only income, but also expenses. For a competent money management it is convenient to use special applications for smartphones. They will eliminate unnecessary expenses.
  • We must try to save not only money, but also knowledge. They will help to better navigate in the world of finance and may give an idea for additional income.
Money for rainy day: whether to save money and how to do it?

WHERE IS BETTER TO STORE MONEY

There are three common ways to store money:

  1. Cash at home. The advantage of this option is that money is always at hand. But at the same time they are subject to inflation and there is a danger of losing them as a result of a robbery or fire.
  2. In gold. This is also not the best option. Gold prices cannot be called stable, and it can also be lost as a result of a robbery.
  3. On a bank deposit. This is probably the best option. The money is protected against inflation by interest on the deposit, and in case of problems in the bank, amounts up to 1.4 million rubles. guaranteed to be returned to the depositor by the state corporation Deposit Insurance Agency.

Everybody really needs a financial airbag. If it is not there, and the money was needed urgently, then you can contact the microfinance organization. MFIs are convenient in that they can get a loan on the card in just 15 minutes and for this you only need a passport .#Money for rainy day: whether to save money and how to do it?