In order not to suffer from lack of money, it is necessary to learn not only to save, but also to properly distribute savings. Veniamin Stepanenko, financial expert and founder of the W-Trading investment platform, told socialbites.ca about this.
The expert offered some advice on establishing a “healthy relationship” with money.
First of all, you need to make your own list of expenses and income, according to Veniamin Stepanenko.
“You have to understand how much you earn and where the money is going. Make a list of expenses and income and then determine how much you can save each month,” explained the financial expert.
Next, you need to start creating an airbag with a reserve of funds that can be used in case of force majeure.
“It is advisable to have a reserve fund in the amount of 3 to 6 months of expenses,” said Stepanenko.
He added that the most common way to create a reserve is to deposit money in a bank.
At the same time, you can accumulate and increase funds with the help of investments, for example, by opening a brokerage account.
“But for novice investors, it is recommended to use more conservative methods, such as buying bonds,” said Veniamin Stepanenko.
If there isn’t enough money and nothing to save, the expert suggested analyzing your spending and figuring out which part of them “slows you in the red.” To save money, he recommended buying what you need, not what you want, using cashback, and getting a tax deduction.
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