How can we protect ourselves for difficult times? This is one of the answers that most of us actively seek, either because we recognize that we will have more difficulties in the coming years or simply because we believe we can strengthen our finances to make them more resilient, bulletproof.
Whether we like it or not, there are small steps we can take today, which will be fundamental to overcoming or alleviating eventual difficulties that may arise. Learn which ones can make your finances bulletproof.
Emergency Fund is Salvation for Your Personal Finance
For more than a year we have been struggling to create an emergency fund for difficult times. Those who have followed our advice should already be relieved because they will be prepared for the unexpected. Those who have not yet done so are imperative to do so by putting at least 6 months of all fixed expenses plus an additional contribution to extra unexpected expenses.
This will allow you to deal with the crisis and be prepared for any financially damaging events, such as extraordinary health care, unemployment, forced labor in the home, car repair, additional taxes, among others.
Pay 10% of each Euro you receive for your Savings
10% is the minimum you should put aside whenever you receive money from your work, whether through your salary, your business, offers, extra work, among others. For every euro, ten cents is for their savings. They are for themselves, for their family, for their future.
This habit of saving, which we advise that is simultaneous with receiving money, will allow the future to smile at you. Those who start early to save more possibilities will have to possess a good amount of money in the mature age, however, there is no age to spare, there is yes, initiative and desire of.
By paying at least 10% every month for your savings you will feel that your savings goal is realized and you will be free to look for ways to earn extra money to boost your personal finances.
40% in Maximum for your Credits
For many, this limit has already been exceeded because the weight of credits in disposable income already exceeds 40%, but it is never too late to implement a strategy to repay credits. It should be noted that even if it is not worth amortizing the emotional effect by having a lower weight of its credits, it largely compensates for eventual gains that could arise by deciding to invest. For others, if the amortization of credits is not possible then consolidated credit may be a solution.
Credit Cards Only for Planned Purchases
The use of the credit card has become more and more popular. It is as habitual to use a credit card as to use money or ATM, however, this means of payment can be a true consumer of your finances. If you like to use the credit card then do it for conscious and planned purchases, always following our tips and try to make the most of your credit cards, either through cashback programs or by taking advantage of offers.
There is no ideal number of credit cards per person, however, many argue that 2 credit cards is more than enough. I think that this number should be studied case by case, as many people should not even have a credit card, however, many others could have 6 credit cards because they recognize the power of this plastic and only choose credit cards without annuity or with very advantageous conditions.