Covid 19 has affected stock markets globally and incurred a major loss in every sector. The year 2020 has shown how significant it is to save money. Many individuals do not think of saving for the rainy days, but instead, prefer to live in the moment by spending more. Everyone should ask themselves: how much money do I have saved in case of an emergency and for the future? If the answered sum does not cover their bills and other necessary costs for an extended period, they should get up to speed with the following pointers and boost their investments for future events.
Here are some questions that must get answered to better save in their life:
How does income work?
Have you set a savings goal?
How to set a budget?
Are there any debts that need to be paid?
Is there another way of getting extra cash?
What is your thought on this?
Every moment of the market has to be read. Generally, by 2021, the market may be in a somewhat volatile state. Stepping into this covid-19 should be considered with some caution.
I think 2021 will be very challenging for every trader. The whole world is trying to overcome an epidemic. So the analysis should be done with a lot of consideration in the current situation.
I am always saving extra money on a side.
The goal is to have sacings account for retirement, for bad times which always come and for sudden expenses.
For retirement I plan to invest around 5% of my monthly salary because what I can see now our goverment will not have money to give me good enough retirement so I can to take care of myself.
Second savings account is for bad times. By that I mean if I lose my job any my montly income I need to be able to cover the living costs for at least 10 months or a year. That way I am calm if bad thing happens.
By montly expenses I mean rent, food costs, utility bills which are the most important costs.
At the start I save more from my salary to get quickly to this level. So that can be from 10-20% per month and later on I lower that to 5% of my salary.
And the third saving account is for sudden expenses like some one dies and I need to pay the costs, weddings, car repair, vacation and so on. For this I save also around 5% of my salary.
If I am able to save more then I have investing account where I invest in stocks and now in crypto assets like Bitcoin and Ethereum and altcoins.
saving money is a good thing in financial management , actually there is no importance how much you can earn from trading or anything , its not a big deal the main issue how much you have saved
Saving money is good, but thats if you have a good job and the economy is good. Sometimes daily expenses may not give you the opportunity to save something significant.
Great thought buddy. One should start investing in stocks as soon as possible as it helps in maintaining life balance. But my friend do invest you time before investing in crypto as many countries are not legalizing it.
One Pro Tip: always follow share market news whenever possible. I am an investor based in Australia. I try to keep myself updated about all the asx news booming around.
You are right about the need of saving. I think almost all of us had to bear the brunt of Pandemic. We all were not prepared and this would have not happend if we saved even a small part of our incomes for the times of emergency.
If you have decided to trade forex, I would suggest risking only that money that you won’t need in the near future. Trading is a risky business and you won’t be making profits from the very beginning. Better come prepared!
The answer here should be - at least one year. Start with 3 months worth of expenses and then move from there until you have at least one year’s worth. Unexpected expenses pile up REALLY quickly. I know a lot of people who ended up with an insane amount of debt because of getting sick or being in an accident. You just never know what will happen.
Having an emergency fund is probably wise but anything more than that is better invested as interest rates are far less than the rate of inflation in many places around the world. The irony is many say they don’t want to invest as they are scared of losing money, not understanding that they are anyway in savings account and that a portion of their pension fund is also used for this purpose.