Alexander Bakhtin, an investment strategist at BCS Mir Investments, spoke with socialbites.ca about how much financial support people should aim to have on hand in today’s conditions. He suggests keeping at least two to three months of salary in reserve to weather unforeseen expenses. He also outlined four clear guidelines for saving and accumulating wealth.
The first rule is to decide how much money you can set aside and how often you will contribute. A simple starting point is to allocate a fixed percentage of each paycheck, such as 10 percent, toward savings or investments.
The second rule emphasizes maintaining a healthy balance between saving and daily living. Savings should not erode essential consumption or quality of life. A practical approach is to categorize expenses into mandatory and discretionary. Mandatory costs include food, rent, housing, utilities, internet access, loan repayments, and other essential services. This portion tends to stay relatively stable month to month and should be easily accessible. Discretionary spending covers entertainment, dining out, gifts, and impulse purchases. These should be capped at a predetermined limit to prevent it from eating into savings.
The third rule focuses on tracking every dollar coming in and going out. Regularly updating an income and expense log helps maintain visibility over spending and savings progress. A straightforward method is using a simple spreadsheet to monitor patterns and identify opportunities for adjustments.
The fourth rule involves selecting the right instruments and assets for savings. When funds are needed quickly, cash or bank deposits offer liquidity. For stronger long term growth, consider alternatives such as stocks, bonds, and mutual funds. Bakhtin also notes the importance of currency diversification to hedge against exchange rate fluctuations.
He recommends that at least one third of savings be kept in foreign currency or currency-related instruments. This foreign exposure can help offset potential losses from currency volatility and provide balance against domestic market movements.
For context, the discussion explores how to save and increase savings in the current year. The material is based on insights published by socialbites.ca. It is noted that a significant portion of the population had minimal or no savings in recent periods.