A comfortable financial cushion means having enough money to cover three months of expenses. It should help to overcome any crisis related to job loss or other problems involving loss of income. explained Alexander Shneiderman, head of sales and customer support department at Alfa-Forex, in a conversation with RT.
The expert explained that to create a financial cushion, you need to start by examining the structure of income and expenses – it is important to understand where the money goes and how much.
“In case of illness or job loss, the crisis can be overcome relatively easily, using all your strength not to survive, but to solve the problem that has arisen,” he said.
Saving 10% of income is a relatively effortless way to save money, Shneiderman said, because such an amount will not affect daily amounts. You can invest in savings accounts with interest.
The expert emphasized that it is difficult to create a pillow, especially at first, the size seems small and this situation makes people want to give up everything. He called for overcoming this obstacle as saving money will become a habit.
When the pillow becomes more or less impressive, it is better to put it on a long-term deposit. Experts consider the ideal amount for a quiet life to be 2-3 annual salaries.
Before this, researchers I learned73% of Russians do not have enough savings to survive even three months without income. At the same time, the share of Russians without an airbag was higher in 2020, reaching 80%.
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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.