Properly disposing of your finances — you can not only significantly reduce costs but also to increase the thickness of your wallet. Typically, financial literacy come through many errors and trials, gradually gaining experience and ignoring wise advice of financiers.We present a few highlights that are worth paying attention to on the path to financial literacy.
The vast majority of people believes that some savings are nowhere: still all going to lose, so why save money if you spend it all now and buy some necessary thing?
Perhaps at a specific moment in life this decision may seem correct but after a while you may need a certain amount for unforeseen expenses such as minor repairs in the office, increasing prices from suppliers, etc.
How to pay these costs, if no savings at all? Credit may not be issued, and it often takes several days or even weeks, and you may not be this time.
It is therefore important to remember the first rule: you should always have savings of $ 3-6 monthly expenses in case of an emergency.
2. Savings "under the mattress" instead of the Bank
In Russia less than 50% of the population uses Bank deposits and up to 5% are investors in the stock market. And all for the reason that few trust some financial instruments, preferring to keep savings at home under the pillow/mattress/nightstand etc.
In fact, this kind of investment provides a guaranteed income minus 10-13% per annum! The reason is simple – inflation. So, your current 500 thousand RUB, put in the bedside table, and in 5 years turn into a 310 thousand. with an inflation rate of 10% per year.
Therefore, the second rule is not necessary to store the accumulation in the cupboard – it is better to place them at least in a Bank Deposit to save it from inflation
. Are you afraid of bankruptcy? Teach that if one Bank of up to 700 thousand rubles, while the revocation of his license you are guaranteed to return your contribution to the safe and sound thanks to the Deposit insurance system.3. Incorrect loan options
Deciding to take out a Bank loan
, it is important to remember that it needs to be in the currency in which you get your profits
. Most often it is the RUB. If you succumb to the temptation to borrow in foreign currency at a lower rate, then to increase your monthly mortgage payments by 30-50% due to the fall of the ruble.To be not too big:
take a loan is not "oversized" just in case, and the exact amount that you need. Note that, taking the extra 50 thousand loan, you will have to repay the Bank 75 thousand and more.
Therefore it is better to take a loan in rubles, the necessary amount and for a minimum period that the loan payment was up to 20-30% of your income.
4. Investments without a period
It is impossible to invest if you do not know for what particular purpose this is done. At the same time "earn" is not the goal. The goal must have a time, cost and priority.
Only clearly defined it is possible to correctly choose the suitable tools for you for investment.
So, if you invest with a goal to save up for some important goal in 1-3 years, it is better to prefer Bank deposits and safe bonds or bond funds.
If we are on target 3-10 years, in addition to deposits and bonds, you can add to your portfolio to 50% stocks or stock funds. Well, if you invest for 10 years or more, it is possible to increase the proportion of shares up to 70-80%.5. Risk wisely
If your colleague or neighbor is investing in stocks and enjoys a yield of 20% per annum or more, it does not mean that you need to buy them. The fact that every person has their own level of risk appetite. And if your neighbor is sometimes willing to tolerate a fall in the value of its shares to 50%, you might be not ready, sell stocks just at the wrong time, will receive a loss and be disappointed in the investment.
Therefore, it is very important to determine your risk tolerance
: if you are not ready for a significant fall in the value of your investment, allocate most of the money in deposits and reliable bonds. If you are willing to sharp fluctuations in the size of your savings – a significant part of their place in the promotion.
6. Financial plan
If a person only thinks about buying a car in a year, buy an apartment in 3 years and pay for the education of son after 10 years no plans, he bought the necessary amount for the car but will remain with no down payment. Because of the large credit payments he will not be able to accumulate the amount needed for training of the son, and he will not act in the best UNIVERSITY to get to the free compartment. On the retirement and can not speak. All this adverse scenario was implemented because people had before me a goal, not a complete financial plan
7. The neglect of insurance
In Russia, insurance of apartments, cars and even life unpopular, because the majority believes that they just do not can occur. The cost of repair of an apartment, for compensation to the flooded neighbors from below, to restore their health in most cases unexpected and require significant expenditure, which not everyone is ready. Therefore, insurance of property, liability and life is the key to confidence in the future of each person.
8. Start savings for retirement for a couple of years before her.
About retirement you need to think for at least 10 years before her.
Also interesting: How to manage your savings at any age. 7 reasons why you still not a millionaire
9. Neglecting tax benefits
Not many people know and use all kinds of tax deductions. Meanwhile any may annually receive up to 15 600 roubles if he paid for education, treatment, invested in their retirement or doing charity work. If you buy an apartment or a house, you can receive up to 260 thousand rubles. plus additional compensation for the interest on the loan to purchase real estate.published