The topic of the future of the economy is now not only of concern to financial analysts: we are all anxiously awaiting what will happen next. It seems clear that something needs to be done, but what? Invest in expensive bags? Freeze and spend nothing? Invest in yourself?
Experts conduct such complex discussions that a person with at least financial education can understand them. Therefore, BeautyHack.ru asked financial specialist Norayr Movsisyan to talk about the basic economic rules that we must observe in order to feel confident even in an unstable situation. Important: this expert speaks a simple and understandable language, girls!
financial analyst. Telegram channel: t.me/MarginCall2020
- We always strive to live better: to increase our demands, to achieve certain goals. This is definitely good. Especially if, along with our growing demands, we are looking for new sources of income. However, the current situation proves that life can change dramatically at the most unexpected moment, and the most important task is to learn to be ready for any twists of fate.
Save at least 10% of your income
The main rule is to save at least 10% of your income. Everyone knows it, but not everyone follows it. But it really works: it helps to always have savings and feel more confident.
Reconsider your attitude towards shopping
Online stores offer shopping at great prices. Online shopping (within reasonable limits, of course) can only be acceptable from a psychological point of view, if the process calms you down. But in this case, you need to buy really necessary things. In addition, it is important to understand that a new dress that you buy today may not be "released" until six months later. How likely is it to be trending? This means that it is absolutely unprofitable to spend money on something that will not bring benefits.
At the same time, there is an important nuance with the purchase of equipment. The ruble has recently fallen sharply. This means that the market price for imported equipment (and we mainly use this) will grow or has already grown. If this technique is really needed (now or in the future), then it's time to get it.
Analyze prices in the market: more expensive does not mean better
In any market, the market itself determines the price. This applies to both lemon and ginger and oil. If there is a lot of demand for a product, and the supply does not grow, the price for it rises. The same thing happened with medical masks and antiseptics. Prices for them continue to rise because there is still huge demand. Naturally, after the pandemic, the prices for these goods will return to their previous level, and maybe even lower. From this it is worth drawing only one conclusion - it is not always the most expensive - it is the best, so do not rush to shopping. Compare the cost of goods in different stores and make the right choice. Nowadays, there is no risk of a shortage of any product: if one company does not have time to produce pasta, there will be a thousand others instead, so the market will be overwhelmed with supply.
Keep savings in different currencies
The Russian ruble exchange rate is highly dependent on oil prices on the international market. Last month, there has already been a sharp change in the exchange rate: first after the failed OPEC + deal in early March, and then - already due to the decline in oil prices in connection with the pandemic. Now the ruble has stabilized relatively, but so far the risk of further decline is very high. The forecasts are different and they are not very optimistic.
As I said above, along with the fall of the ruble, prices for goods and services rise. Therefore, savings must be kept in different currencies. This is one of the main rules of financial thinking. If funds are held in different currencies, rate jumps are not so important, because when the currency basket is diversified, any rate change is carried forward with minimal losses. Sometimes you can earn a little on this.
In Russia, the main currencies for saving are the US dollar and the euro. It is in these currencies that at least half of the savings should be kept.
Do not be afraid of change
It is necessary to understand that now we are only at the beginning of financial difficulties. The economic crisis is just beginning. The world froze, the turnover of funds slowed down, the economic chain was disrupted. At the same time, the level of unemployment throughout the world is growing at a rapid pace. Obviously, being in self-isolation, people began to spend less money. As a result of this, difficulties arise for those companies that continue to work. Some of them have to cut salaries and lay off employees to survive.
On the other hand, now new opportunities are opening up to develop your business in the online space and capitalize skills and knowledge. If you can reconsider your spending and manage your free time properly, you can achieve great results. There will be no more money after the quarantine if we continue to lead the same lifestyle that we had before.
At the same time, I would like to note that any new activity that meets the current requirements will grow at a rapid pace. And there will be many requirements in the new post-warranty world. I am sure that any person can achieve success.
If you feel confident in the financial field and would like to increase your savings, you can start investing income. In developed countries it is difficult to find a person who does not invest part of his money every month. Even one share of a promising company can grow not only several times in price within a year, but also give good dividends. If we add to these calculations a “miracle” called “compound interest”, then the results in a year will pleasantly surprise.
There are four of the most popular investment options.
1) An individual investment account, which a broker helps to open: independent or represented from the brokerage department of a bank. The profit from such an account will be greater than, for example, from a bank deposit.
2) Stocks can also increase your savings. There are two ways to work with them. The first one is to transfer the money to the management of an investment company, which will prepare and maintain an investment portfolio suitable for you (such services, for example, are offered by Alfa Capital, VTB Capital, Freedom Finance and others).
The second option is to open a brokerage account on your own and form a portfolio at your own discretion. But in this case, in order to navigate the stock market, you can choose for recommendations one or more “virtual assistants” - traders who regularly share their portfolios and forecasts.
3) If you have any skills and professional experience, it makes sense to invest in promoting yourself as an independent expert. Now many companies will switch to outsourcing services, and professionals in their field are always needed. Try to find sites or groups in networks where you can post information about yourself so that the employer can find you.
4) Buying real estate can also be a profitable investment. Considering the current situation, prices for it in the medium term are likely to decline rather than rise. And in the near future, as experts say, the most profitable purchase of a suburban area.