BCS Mir Investments investment strategist Alexander Bakhtin said in an interview with socialbites.ca that under current conditions financial support should be at least two or three months’ salary. He determined the four rules of saving accumulation.
First you need to decide how much money and how regularly you can spend on savings/investments. For example, 10% of each salary.
The second rule is that saving should not be done in a way that would harm consumption habits and quality of life. It is better to divide expenses into mandatory and optional. The first of these is food, housing rent, housing and social services, internet, loan payments. This amount will be approximately the same from month to month and should be readily available. Discretionary expenses include entertainment, restaurants, gifts and instant purchases. In order for such expenditures not to cause loss, they must also be limited to a certain amount.
The third rule for someone who wants to balance spending and saving is to keep track of income and expenses. This can be done in a regular Excel spreadsheet.
Fourth, you need to determine which instruments and assets you will save.
“If options with the fastest access to money (cash, bank deposits) are suitable for a financial airbag, it is better to choose other means (stocks, bonds, mutual funds) for effective savings. Also, don’t forget about currency diversification,” said Bakhtin.
According to him, at least one third of the savings should be kept in foreign currency and currency instruments. This approach helps compensate for losses from exchange rate instability.
How to save and increase savings in 2023? material “socialbites.ca”.
Previously reported27 percent of Russians have no savings.