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!