Instruction: What to do with money, so as not to regret after 30 years
When the student years with irregular part-time work are over, and income has become more or less stable, we begin to think about how to "save and increase" the available money. Perhaps you were given a bonus, you inherited from your grandmother, or received a round sum as a birthday present - such that you cannot buy an apartment, but you would like to invest it sensibly. We have compiled a manual that will help you consciously manage your money and feel confident during the next financial crisis.
Stop living in debt
First of all, distribute all debts and close credits. The habit of taking up a paycheck and using credit cards does not always lead to catastrophic debts - especially since there are now credit cards for which you can return money without interest for a couple of months. But still, this practice is like running in place - all the time you are a little short, and a month after receiving a salary begins with the return of debts. It is possible to escape from this situation, just a month or two is enough to avoid impulsive purchases and unnecessary spending - just set yourself the task of not buying anything until you go to zero.
In general, if you have additional money to pay, immediately return everything you owe. This is especially true for small consumer loans and credit card spending - if the mortgage is paid stably and there are many years ahead, leave it alone. Try to form the habit of not borrowing and not agreeing to the credit offers of banks - let the convenience of a credit card be limited only to rental cars when traveling, when the amount of the collateral is blocked on the account.
Take care of health
Health, unfortunately, can fail at the most unexpected moment - but we can insure ourselves at least from a part of the sudden expenditure on it. Quality fresh food and a conveniently located gymnasium are something you shouldn’t save on, because you invest in your own health and well-being. Better save on cigarettes by quitting smoking.
Consider whether you need voluntary medical insurance - perhaps for routine examinations and sick leave due to a cold, it is quite possible to get along with the district clinic. But good insurance in case of dangerous diseases can greatly help out if something serious happens. Finally, do not spare money on professional teeth cleaning every six months - good hygiene remains the only working way to prevent caries and other dental diseases, which are expensive to treat.
Update your work tools
This item refers primarily to freelancers: the more efficiently and quickly you do your job, the higher the income. This means that you cannot afford to waste time endlessly restarting a frozen computer. If your eyes get tired of the old monitor, and your shoulders, your back and your hands - because you have an uncomfortable keyboard and desk, then it would be good to invest the money that appeared in the update of the workplace. Shopping time will be fun later, when, thanks to more efficient work, you will simply earn more.
Keep your home safe from surprises
If somewhere in the bathroom sometimes the pipe is leaking - sooner or later an accident may occur with the flooded neighbors, and it is better to take action in advance. Spark wires, rolls under books, shelves, or plugs emitted from turning on the vacuum cleaner are reasons for minor repairs. While there is money, try to repair everything that keeps "on snot" in order to protect yourself from the situation when the repair is not postponed, but there is nothing to pay for it. Study apartment insurance - although there is an opinion that insurance companies do not pay anyone anything, this is not so. Insurance is useful not only if you still flood your neighbors below the floor, but also in easier cases when other people's apartments are not affected.
Finally, the place where you live also affects your health. We talked about the "sick building syndrome" and how to improve your home and workplace. Even if you live in a rented apartment, it makes sense to invest in a good vacuum cleaner that catches allergens, several potted plants and a high-quality mattress - it will contribute to good sleep and a healthy back condition.
Start putting off
When you distributed debts, put your health, house and workplace in order, you can think about savings. It is easier and best of all to save money as soon as they appear - that is, immediately after the salary. If you do the opposite, on a residual basis, then with high probability there will be no money to postpone at the end of the month. Choose a fixed share (five, ten, twenty percent) of any income that you will not spend. The task is to accumulate an amount of at least six months of a comfortable life, in case you find yourself out of work. This airbag will give confidence and peace of mind, even if it is not useful in the near future.
Any savings must be made in currency, no matter how attractive the stabilization of the ruble seems to be. Experience shows that since the nineties, when we first came across the concept of currency exchange, the dollar still becomes more expensive and the ruble cheaper, although there are reverse fluctuations. Now the majority of large Russian banks offer deposit options in different currencies - and if in euro only interest shares per year are charged on them, then in dollars it is quite possible to find a deposit at 1.5-2%.
Look for options for different attachments
To keep eggs in different baskets is not a new idea, but a valuable one. Especially if you are afraid of banking instability, it makes sense to put part of the money in cash (again, in dollars) in a safe deposit box or simply "under the mattress." Another investment option is securities; they are not easy to understand, but you can find a consultant who will help in this matter. Again, almost all banks offer investment services to mutual funds or precious metals - usually this information is directly on the Internet bank.
The option of investing in real estate for rent can also be considered, only it is not suitable for all cities and countries; in Russia the cost of rent is relatively low. It makes sense to make a first payment, rent an apartment in a mortgage and rent it out where the rent is higher than mortgage contributions - then in twenty or thirty years you will have real estate that has practically paid itself. Places with expensive rentals and high demand for it are primarily European cities, in which there are many students all year round, like Berlin or Lisbon.
Photo: pterwort - stock.adobe.com, neirfy - stock.adobe.com