Any person should have a certain amount of money. It is called a financial cushion and is needed to deal with unforeseen costly issues. These include, for example, expensive medical treatment, job loss, car breakdown, having to pay a fine, and much more.
What should be a financial safety cushion
It is generally accepted that the amount of such savings should not be less than the average family expenditure over a six-month period. At the same time, a number of requirements are imposed on the financial airbag:
- This money should be inviolable and should be used only in urgent cases. Spending deferred funds, for example, on vacation or buying a new iPhone, is fundamentally wrong.
- Money must be available. This means that real estate, jewelry or a car cannot be considered a financial safety cushion. To turn it into money, you first need to sell it profitably, and this takes time. In an emergency, it may simply not be there.
- Money set aside as a financial safety cushion must be well protected. Otherwise, you can be left without them.
- The created stock of funds must be regularly replenished. An amount equal to the family's six-month expense is the standard size of the airbag. The more money you can save, the less noticeable financial problems will be for the family budget.
How to save money
To start saving money, you need to take a few simple steps:
- Calculate your average monthly expenses, including utility bills and food purchases.
- Apply the size of the airbag. To begin with, it can be equal to the expenses for a three-month period.
- Set the amount of monthly deductions. It should not be less than 10% of the average monthly income. The optimal figure is 30%.
A few additional tips:
- To create a financial airbag faster, you need to minimize costs. For example, skipping weekly cafes or taxi rides.
- Impulse buying should be completely eliminated. Unplanned spending is rarely beneficial, but it can make a big dent in your budget.
- It is necessary to clearly record not only income, but also expenses. For competent money management, it is convenient to use special applications for smartphones. They will eliminate unnecessary waste.
- You need to try to save not only money, but also knowledge. They will help you better navigate the world of finance and can give you an idea for additional income.
Where is the best place to keep money
There are three most common ways to store money:
- Cash at home. The advantage of this option is that money is always at hand. But at the same time, they are prone to inflation and there is a danger of losing them as a result of robbery or fire.
- In gold. This is also not the best option. Gold prices cannot be called stable, and it can also be lost as a result of the robbery.
- On a bank deposit. This is probably the best option. Money is protected from inflation by interest on the deposit, and in case of problems in the bank, amounts up to 1.4 million rubles. guaranteed to be returned to the depositor by the state corporation "Deposit Insurance Agency".
A financial safety cushion is a must for every person. If it is not there, and the money is needed urgently, then you can contact a microfinance organization. MFOs are convenient because they can get a loan on a card in just 15 minutes and for this you only need a passport.
