In times of economic and political turmoil, people tend to make hasty financial decisions: thoughtlessly buy foreign currency, spend money from the “rainy day” category on buckwheat and sugar, or withdraw all their savings from bank cards and hide them under the bed. As practice shows, such actions only aggravate problems with personal capital.
Roman Khoroshev, founder of the crowdlending platform JetLend, told socialbites.ca. He identified five rules for managing finances during the crisis.
First you need to start planning a budget: analyze income, expenses and keep a financial diary. The second rule is to save 10% of your income to create a financial cushion.
“Initially, it is better to deposit the money in any bank with interest rather than investing it. This should always be done even if the person has credit and thinks his salary is low. The client will not notice this 10% in his expenses and within a year he will already keep the amount in his account, which will serve as a financial buffer in case of unforeseen events. It is important to remember the principle of paying yourself first or “paying yourself”. According to this rule, it is worth allocating funds for savings or investment immediately after receiving income, and not after paying off all bills and debts,” said the financier.
The third rule is to keep your credit load under control. The expert said that it is optimal if no more than 30% of the family’s total income is spent on repaying loans.
“At the same time, if the borrower finds himself in a difficult financial situation, this situation can be resolved by various legal means: loan refinancing, loan holidays, etc. “Credit checking is the fourth rule,” he added.
Finally, the most important thing is not to panic. According to Khoroshev, it is worth rationally analyzing what happened and only after that make financial decisions.
“The rush on buckwheat and sugar, which started at the beginning of the epidemic in 2020 and repeated in February 2022, forced many people to spend “spare” money on tens of kilograms of groceries. But in the end there was no shortage and the savings were spent.
“The same goes for currency,” he said.
Before that Khoroshev said “socialbites.ca”, how to calculate your credit load.
Previously at the Central Bank It has been recommended Russians need to “arrange life on credit” before applying.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.