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The most important article about your money

Shall we talk about your money? There are always either a few or a lot of them, and something has to be done about it. Let’s analyze the whole essence of the financial side of your life. In five minutes of reading, you will learn for free what financial consultants, coaches and personal finance writers are asking for a lot of money for. So, let’s go!
Let’s take the most average portrait of a Russian philistine: Sasha, 31, a city dweller, income of 50 thousand rubles a month, married, has a preschool child, he and his wife pay a consumer loan and mortgage. Many people have met this type, right?
Sasha always lacks money. Sometimes it’s just not enough, sometimes it’s not enough. At some point, he gets tired of living from paycheck to paycheck and saving for a vacation for a whole year, periodically breaking down for other purchases. He wants to stop depending on work and stop counting every penny. But he does not understand at all how to achieve this.
‌The first thought that comes to him is take more, throw further. Sasha already works five days and moonlights on weekends, but apparently we need to find a third part-time job.

And immediately no, this is a bad option.

Being overloaded at three jobs, Sasha will harm his health and relationships with loved ones, and with the growth of earnings, the wishlist will only grow, but there will not be enough money for everything.

Then he comes to the conclusion that money can be invested somewhere and receive income. Sasha loves football and is ready to bet on certain teams in order to earn money.

This is also a bad option. Bookmakers have huge profits on the likes of Sasha, hiring the best mathematicians to calculate the odds. He doesn’t realize that the system is designed so that Sasha doesn’t win.

‌Then he gets the idea to open an account with a Forex broker and trade currencies. This idea is also not very good. It is impossible to earn money on currency fluctuations for a long time and steadily due to sharp jumps in exchange rates. Even if you choose the right direction, the price can jump more than once, eating up your entire deposit.

Upset and having lost money, Sasha puts the rest of his savings at 6% in the largest bank, because «at least it won’t burst.» The bank happily rubs its hands and earns on Sasha’s savings.

Or maybe Sasha will just hide the money at home in the nightstand, ceasing to trust everyone at all, and inflation will eat up his already small savings.

What Sasha and people like him need to understand.

You can solve all your financial problems and it’s not difficult, but! It will take time. You will have to build your well-being step by step, over the years, but it’s definitely better than not having money even for your own treatment in retirement. There is no quick money without the risk of losing everything. Wealth takes time. Smart investors understand this. ‌If they offer dozens of annual rubles — it’s a divorce, never agree.

To become rich, you need to set yourself such a goal. Need a personal finance plan. Specifically and clearly, in numbers, write down how much you need and when. Take a piece of paper and write in the first column the years for 40−50 years ahead. Next to each year, note the major changes in your life related to money, for example, in which year you want to have a child, in which year you need to change your apartment, in which car, in which you want to buy a house in the village, and finally in which you would like to stop working. Next to each event, write the amount you need to have in order to afford this expense. These amounts will be your financial goals.

Don’t invest in anything!
Where to invest? In stocks, bonds, ETFs, real estate, precious metals — this is the main thing. Of course, there are not only these assets, but an ordinary person does not need to invest anywhere else besides them!No forex, bookmakers, pyramids, HYIPs, loans at interest to friends and acquaintances.Wealth will require discipline. It’s not that hard, but without perseverance there will be nothing. The main enemies of your well-being are the irregularity of investments and the desire to freak out and screw everything up. The easiest way to deal with this is to complicate access to savings. For example, if you try to withdraw money from an individual investment account, it will burn. If you withdraw from the deposit, the interest will burn. I wanted to buy a new TV abruptly — the money is in dollars, we must first change it. Etc.

And the last. Start saving 10−30% of your income every month right now. Use the «Pay yourself first» method: from any income immediately and immediately set aside at least 10%. Rest assured, you won’t even notice it in the general flow of spending. Start with any small amount and invest every month without missing out. Then you will be made rich not 5−10 thousand a month, but a compound percentage.The secret is that the interest from your investments will be accrued on the previous interest, thereby dramatically increasing the profitability in the future. The more years, the stronger.

What financial goals should I set?

Well, you’ve started saving 10% of your monthly income. Where to put them — in the bank, under the pillow?


The first thing to do is to pay off the debts. You are already paying for them, but now you will start doing it faster. It will not be possible to do this quickly with a mortgage, but all other debts must be repaid as quickly as possible. If you have several loans, start paying off the most expensive of them, which accrues the most interest. Consumer loans are a very dangerous thing, so once again — all debts, except mortgages, should be repaid as quickly as possible. The mortgage needs to be at least refinanced, that is, to reduce payments and its repayment period. If you do not have a mortgage, then thank God — in 9 cases out of 10 it is not actually needed. It is more profitable to rent.The next thing to do is to raise money for a «financial safety cushion». This is an amount equal to 3−6 months of your expenses if you are single, 6−9 months of family expenses if you are married and 9−12 months if there are children in the family. Don’t know how much you spend per month? Keep at least a few months of personal finance records — what and how much money is spent. A pillow is necessary for those cases when money is urgently needed. For example, if you crashed a car, or you were fired from work and need to live on something until you find a new one. It’s really not a loan to take. These funds should be in quick access, so just putting them into a bank account is not an option — interest will be lost. How to create a financial safety cushion? I recommend getting a debit card with a good percentage on the balance. Today there are cards on which you can put money at 7% per annum. This is comparable to the profitability of OFZ, only access to money is even faster.
‌And when you have no debts and have accumulated a safety cushion, it’s time to start real investments. And where to invest the money? Go to a broker, open an AIS (individual investment account) and buy stocks, bonds and ETFs for 3 years. AIS allows you to either receive a tax deduction from investments of 400,000 per year, or not pay tax on profits from the sale of securities after 3 years or more. You will not be able to withdraw money without losing benefits, so do not put money there from the pillow.

What kind of securities to buy depends on how much you are willing to suffer temporary losses on the account and for how long your investments are. In the most general case, you will have a portfolio of OFZ, ETFs from Finex and shares of the largest companies in Russia. Every month you will buy securities that will pay dividends (a percentage of the company’s profits), which you, in turn, will reinvest and one day wake up rich and independent of salary.Speaking of salary. If you don’t know what financial goal to set for yourself, the easiest option is to receive passive income equal to your current expenses. That is, if you spend 40 thousand rubles a month, for example, how much do you need to receive dividends in order to live only on them? 40,000*12=480.000 rubles. If you take the yield of 10% per annum, then you need an amount of 4,800,000 rubles to no longer work. This amount will help you collect regularity, time and compound interest.

Along the way, you will still need to diversify investments by currency and countries, add precious metals and real estate, but this is already a pleasant hassle. Now you know exactly what to do if an inheritance or a lottery win falls on you — just embed the amount into your financial plan and achieve financial goals even faster.
‌In these few minutes, I have told you the information for which financial advisers take money for consultations and which is spread across numerous articles and posts. I hope this information will help you understand exactly what steps you need to take to achieve your financial goals, and the best gratitude for me would be a repost.

If you still have any questions, write them to info@finans-sovet.ru or in the comments under the article on social networks, or in a personal account. If there are a lot of questions, then I will answer everything on an individual consultation and help with the development of a personal financial plan.