How not to lose money: 7 financial mistakes

Money decides if not everything, then a lot. Deprivation of finances is an unpleasant situation for a person with any income, and you want to get the knowledge of how not to lose money not from personal negative experience, but taking into account possible mistakes in handling them. You can lose money not only by investing it in risky operations, but simply by doing nothing with it. There are several commonly made mistakes that lead to loss of funds.

Major financial mistakes:

Loan processing

Cases when there is not enough own funds for the purchase, or the money is urgently needed for certain needs, are not so rare. And banks provide a lot of opportunities for lending. It should be understood in advance that none of the loans can be beneficial for the borrower; in any case, you will have to pay both it and interest. However, if you cannot do without a loan, you should spend a little more time and find the most advantageous offer.

Note!

Loan terms may vary. It is important to consider that even a small difference in interest rates in total gives a large gain in the amount of the payment. It is better to choose the bank where the lending rate will be lower, even if it takes a long time to collect a bunch of documents to receive the amount of money.

Keep money under the mattress

In tough economic times, it seems like it's better to keep your cash than to invest it elsewhere. Even trusted banks are suspicious, and your own apartment seems to be the most reliable place for cash. But few people think that during financial crises, the inflation rate rises sharply, and, as a result, the money “under the mattress" depreciates. And well-invested funds can not only compensate for the depreciation of the national currency and the level of inflation, but even become a source of passive income, bringing some profit to their owner.

Untimely withdrawal of money in exchange transactions

When stocks, bonds, or other securities are available, it is misguided behavior to withdraw money in response to a depreciation. This behavior is most common in newcomers to the stock market.

Example:

The stock price of a promising company has plummeted, and the person who bought the securities of this organization fears for his savings and sells them at an unfavorable rate, hoping to save the rest. That's just for the stock markets fluctuations in the exchange rate – this is a normal state. The value of shares with a high degree of probability will return to the previous figure or increase, but the money lost as a result of hasty decisions cannot be returned.

To understand how not to lose money as a result of exchange transactions, it is worth taking a closer look at the behavior of other market participants, studying the company's previous statistics.

No savings

Surprisingly, more than half of the inhabitants of our country do not have savings. This is probably due to the high level of inflation: the saved money depreciates quickly enough, so it seems that spending it right away is the best solution.

Nevertheless, in case of unforeseen situations when a large amount is urgently needed, the presence of savings will play a good service: you don't want to borrow from acquaintances and friends, and if you take loans, you will have to pay considerable interest, especially if you can’t quickly repay the debt. To do this, it is enough to stop spending money on unnecessary things, for example, on a brand new smartphone, which is practically no different from the previous model.

Note!

Financial experts recommend saving up to six times your monthly income, although smaller amounts can also be a good idea. The presence of such an airbag of financial security will provide confidence in the financial stability of your family.

By the way, it is not at all necessary to keep savings at home, it is better to choose such an investment option where you can quickly withdraw funds if necessary:

• bank accounts;
• some types of bonds.

Insurance

As in the case of a financial airbag, although insurance requires some material costs, it will protect you from severe economic consequences in the event of illness, disability or loss of your large property (apartment, car), as well as damage to someone else's. The probability of such accidents is small, but it is still worth thinking about them.

Pension

As for our country, there is no dispute that the pension paid is quite small and rarely covers all the needs of those who have worked for many years.

In order to have a decent standard of living after going on a well-deserved rest, you should take care of this issue in advance and start saving money for a peaceful old age. By putting aside even small amounts every month, you can end up with a good increase in your pension. Such foresight will be rewarded, subsequently it will not be necessary to process in order to have an acceptable standard of living.

tax deductions

This point is often overlooked due to insufficient awareness of those services or purchases for which a tax deduction can be issued. In addition, the tax deduction is also not issued due to bureaucratic subtleties: when preparing and submitting tax returns, people often face formal refusals due to incorrectly completed documents or an incorrectly assembled package of materials.

Nevertheless, a tax deduction can be a good addition to the budget, once you understand the principles of its registration, especially since now you can file a tax return via the Internet.

These are just some of the basic principles on how not to lose money in today's economy. If you stick to them, you will be able to achieve financial stability in your own home.