Every new year we make new promises to ourselves and one of them - is to start saving. However, sometimes we fail to keep those promises to ourselves.
Crowdfunding platform 'Profitus' founder Viktorija Vanage shares some tips on how to start saving and how to save more. She says that everything has to start from the questions, why do you want to save and what is the aim of saving?
'You can have lots of different goals: to buy a personal house, retire sooner, save for studies or maybe to create a passive income source. You need to clearly state your aim and only then think of how to achieve your aim' - claims V. Vanage.
When you have a clear goal, you can take the next step and look more carefully into your finance, to understand where you are spending your money. Very often, the main reasons why we are bad at personal financing are in small spending that usually we do not give any importance to.
'We can take a basic example - one cup of coffee on our way to work. Let's say a coffee costs 2.5 euros, if we buy a cup of coffee every single time we go to work, we will spend 55 euros per month just on coffee, if you like to grab a pastry aside, it will cost even more' - says V. Vanage.
The expert says when the expenditure is carefully considered, and you have decided how much money you will put aside monthly, you can choose how you wish to save. One of the ways to save is investing, which helps not only not to spend the saved money but also achieve better results.
'Investing doesn't allow for money to be devaluated and helps to achieve your goal quicker. Imagine, if you can put aside 100 euros monthly and invest it with 10% of annual interest, in 20 years you will save about 76 thousand euros. In the meantime, if you will only put your money aside and you will keep it in a bank account, you will save only 24 thousand euros' - says the founder of investing platform.
You do not need to be afraid of investing
Expert says that you do not need to be afraid of the word investing and to think that you need much capital or knowledge, for me, investing changed in the ultimate decade.
'Investing in stocks, and funds, are not the only investing opportunities anymore. Now every person can invest easily and with small amounts even in real estate through crowdfunding platforms and earn on average 10% of annual interest' - says V. Vanage.
She adds that there are various options to invest, so you should pick the one option that you understand the most and you should research the risks. Risk is always related to profit. The higher profit is suggested, the more risk you should expect.
'When investing in loans, people can expect 15% or 20 % of yearly interest, however, they do not get any guarantees in such a case. While when investing in real estate through crowdfunding platforms, real estate that is valued more than the investment itself is always mortgaged, however, the interest is also lower' - claims V. Vanage.
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