Since investing is a process that involves a certain risk, you need to take care in advance to maintain the stability of your position.
Instructions
Step 1
The first thing to do is create a financial cushion. This will allow you to protect yourself and your family in the event of an emergency: loss of work, fire and flood, business failure.
Step 2
If you have a contingency fund, you can easily ride out bad times. A stock of funds will help you maintain your quality of life. You will eat and dress well as before, gradually regaining your former position.
Step 3
Having a reserve fund, you do not have to get into loans, agree to any job or borrow money from friends. As you can see, having a financial cushion is not only beneficial, but also pleasant, because having a reserve makes life more predictable and stable.
Step 4
If we talk about the size of the reserve fund, then you should have enough money to cover expenses within six months. During this time, you can either find a new job or improve your financial affairs.
Step 5
Calculate how much money you need to live comfortably in the event of a crisis. To do this, analyze the expenses for the month. In this case, take into account utility bills, food, clothing, rest. You may have other expenses as well - for those things or services that are familiar to your family.
Step 6
The resulting amount should be multiplied by six - this is how much your reserve fund should contain.
First, it is necessary to form a safety cushion, and only then engage in investment, business, or take part in various projects.
Step 7
Try to spend less than you earn. Thus, over time, you will form a reserve fund. If it doesn't work, you have two options. First, you can earn more. Try to increase your income and keep your expenses the same. Second, you can save money. Quite often, an analysis of costs allows you to identify some items that can be completely abandoned.
Step 8
Let's say you receive a monthly amount that allows you to purchase only the essentials for life. You are unlikely to be able to save more than 10% of your monthly income. It will take you about 5 years for the airbag to form. This is a very long time and does not justify itself. Therefore, always strive to earn more. It's better than saving money by cutting back on an already small salary.
Step 9
Airbag funds shouldn't be left idle. It is best to put your money on a demand deposit, from which you can withdraw it at any time. If you have a large amount of money, do not forget about diversification - place funds in several reliable banks, preferably not only in rubles, but also in different currencies.
Step 10
You should not take risks and invest funds from the reserve fund in high-risk instruments, for example, in PAMM accounts. Don't risk it - choose reliability and stability.
