Which book to choose to put your cash?

What is your point of view, the first step to put your finances in order? The correct answer: You set up a fund to care equivalent to approximately 6 months of expenses. This money must be placed on a secure financial product allowing you to recover your money over night if necessary. The books are among the most suitable and accessible for this target. Last February I presented to you in an article in the list of best books to find that little had changed since the previous rankings. A booklet being distributed by all banks in recent months, the situation changed? What book do you choose for your fund as a precaution you the highest possible? This is it worth the cost to change the book regularly to enjoy the best offer at the moment?

A booklet offering money cash placerUn comparator which assists working. William, PlusRiches.fr player, created a site comparing the books of banks: In my classification of books, I thought at first that the gain of promotional offers not worth the cost of you bother to change booklet regularly. The advantage of this new site is that it calculates exactly how much each will earn you a booklet on the market depending on the amount you have to place. It provides you at a glance the ranking of the tenders with all the necessary data such as rate of return, the ceiling of filing, the deadline for the offer …

Choosing the right book can tell you 50% more. The calculation with the new offers on the market shows that some books may tell you 50% more a year on a basis of a booklet. If you put 15 600 euros, for example, which is the maximum allowed on a livret A, the supply of Savings of Young Monabanq bring you at this time 403.66 euros on a year against 268.91 euros for a livret A “basic”. What do you think. If every year you put your money on a book that earns you 50% more than the book basis, after twenty years, by reinvesting your profits, you have 24 343 euros instead of 21 011 euros. With the assumption that the rate of the Livret A, currently only 1.5%, not moving. More than the real gain, relatively low at present, the percentage of additional gain, which is very interesting. And if the book rose to 3% in a few years and you find easily a tender offer of 6%?

A high rate does not guarantee a high gain over time. What also surprised me by comparing the offers on this site is an enormous product offering a yield less interesting than the book A. The majority of the book offers a complementary, to use once you’ve exceeded the maximum payment. In fact only a dozen offers on the hundred on the site offers a performance more interesting than the livret A “basic” in one year. A full year seems to me the correct time. Some products have rates of 7% gross, but they are valid only 3 months. In one year, this product is often less interesting than another product with a lower rate. The big advantage  is that it eliminates all the tedious calculations required if you wish to compare the different offers at the moment.

One suggestion for improvement. If I had a suggestion to make would be to specify the population to which each bid is intended. For example, the booklet offers the best performance now, the Savings of Young Monabanq, is accessible only if you are between 12 and 25 years. It is not clear in the details of the offer. In an ideal situation I would be able to seize upon the place that I do not have between 12 and 25 years. Offers for young people do not then I would be presented.

Have you set up your cash precaution? Have you put on a more interesting than the Livret A? Did you think that some books you could bring as much compared to a simple Livret A? Do you think that change every year for the most successful book is a good strategy?

We have already had occasion to discuss the need to first create a relief fund if you had so far used to spend all your money month after month, check after check. It is more important, and this must be done before, as investing in a stock exchange or a life insurance policy to ensure an additional source of income.

This allows you to prepare for the changes which necessarily occur in your life and you will face. But you can not predict. When financial problems, loss of employment, for example, happens, you will not need to borrow or to touch your other investments, which amounted to mortgage your future. Being forced to sell stocks at the wrong time or withdraw money from investment funds of your PEA while taxation does not favor, would cost you more money than the financial problem itself . More importantly, build a relief fund, you can sleep on both ears.

How much money do you spend per month? How many months of expenses can cover you if your main source of income were to disappear? How much money should be put aside in case something goes wrong? Most people have no provision against this risk, it is not surprising that the number of cases of excessive debt is steadily increasing.

It is possible to build a bottom without pain relief, which automatically and the second part of this article will show you how … Now you’re convinced that you build a substantive relief is essential.
Now that the first part of this article has convinced you that it is essential to build a relief fund, see the best way to be:

1. Your substantive relief should be automatic. You will spare no substance to your rescue if you do not put in place an automatic process. From 50 euros per month can be enough to be your background, but they do not purchases that you fancy, you must remove them from your current account automatically, using a debit, for example .

2. Your substantive relief must be in the right place. Your background should help you earn interest, at least to counter the effects of inflation. Attention then not to enrich your bank with your savings. This money must be placed on a liquid product, which allows you to quickly recover your cash relief to the day when you need it. The products are best suited Booklet A or Codevi, for example. Life insurance of more than 8 years may also be the case. Forget the super-type books that relate ING Direct unless the booklet A.

3. The size of your emergency funds. In case of trouble, you must have side between 3 to 6 months of monthly expenses. To each according to his individual case, its location, and beliefs, to decide where to place the cursor. All you have to estimate how much you spend per month.

By creating a background automatic backup, at least two things will happen: you protect against the unexpected and you sleep on your ears, you will live longer pays after paying, month after month. And 50 euros per month is enough to make that difference … before you tackle really become rich!