Tips for a more stable economy

 

Here at Besteconstuition nu we will give you a number of tips on how to get a more stable economy. Note that this article is not primarily about how to improve your finances by reducing your expenses and increasing your income, but rather about how to get more stability in your finances. If you take out income insurance, for example, it will hardly improve your finances in the short term, as it costs money, but it will definitely give you a better economy if you were to become unemployed in the future if you earn well.

A little further ahead, Econs tuition will also write a number of articles that show you how to get a better economy (Econs tuition)by reducing your expenses and increasing your income.

Save to a buffer

A buffer is a must for anyone who wants a stable economy. It is common to save a certain amount each month that you deposit into a savings account. Today, you do not get a particularly high interest rate on monthly savings accounts, but there are a number of smaller banks and finance companies that offer reasonable interest rates.

Another good alternative is to save / lend money via a P2P company because there you get a really good return and a third alternative is to save in a fixed interest account because there you can get the very best savings interest, at least with the smaller ones. the banks and finance companies. However, there is a disadvantage to buffer savings in a fixed interest account and that is that you are not allowed to touch the money during the fixed term with impunity, because if you do, you will have to pay a high withdrawal fee or they will lower your interest. Sometimes it can still pay off because the interest rate is so high, but only if you very rarely need to touch the money.

To save to a buffer:

Save a few hundred bucks or more on a monthly savings account.

When you have a suitable buffer in your monthly savings account, perhaps SEK 10,000, 20,000 or 30,000, you should still continue to save and when you may have saved up SEK 10,000 in addition to your target buffer, you should deposit the money in a fixed interest account or save / invest with a P2P -company. 

 The benefits of having a buffer

You do not have to take out a loan if you incur a large unforeseen expense. It is much better to use your own money than to borrow money for some necessary evil and then pay interest for it.

If you have a payment remark, it can be difficult to get a private loan at all if an unforeseen expense arises and then in the worst case you have to take out an SMS loan that must be repaid in a very short time and not everyone can do it.

If you want to treat yourself to something that costs a penny, perhaps a new TV, a gaming computer or a trip, it is much better to use their buffer than to borrow. Of course, everything will be cheaper if you use your own money.

Take out income insurance if you earn well

On 7 September, the ceiling for the unemployment insurance fund was raised from SEK 18,700 to SEK 25,025 and the compensation for the unemployed now looks like this:

Day 1 - 100: The compensation is a maximum of 80% of his previous salary, but never more than SEK 910 / day.

Day 101 - 200: Max 80%, max SEK 760 / day.

Day 201 - 300: Max 70%, max SEK 760 / day.

Day 301 - 450: Maximum 70% for those who have children under 18 years, maximum SEK 760 / day.

If 80% of your salary is higher than SEK 910 / day, you should take out income insurance because then you will receive compensation that exceeds this amount. Usually you do not get an income insurance on your own but join a trade union because an income insurance is usually included in the membership. However, there are some private income insurances to choose from.

This is what the ceiling usually looks like for trade unions' income insurance:

Compensation ceiling: Provides compensation for salaries up to SEK 80,000 or 10,000, but there are income insurances that reimburse even higher salaries.

Time period: Most income insurances provide compensation during the first 100 - 160 days, depending on the union.

If you earn a lot and become unemployed, the income insurance means that you get a much more stable economy than if you had not had any insurance. Of course, the income insurance only applies for a few months, but then you have some time to find a new job or adapt your expenses to your new situation.

Save in the short and long term - that's what you do

Short-term savings, 1 - 5 years. Save on a monthly savings account with free withdrawals and variable interest until you have put together a buffer and a decent savings capital in addition to that.

Save in the medium term, 3 - 10 years. Place the money you do not need as a buffer in a fixed-rate account that provides a really good interest rate. The longer you tie up the money, the higher the interest rate you will receive. Once you have a new surplus in your monthly savings account, you should also deposit this money in a fixed interest account.

Save in the long run, 5 - 30 years. Invest part of your capital in fairly stable funds. Historically, mutual funds provide a better return than most savings accounts. This type of saving is suitable, for example, for future home purchases and for putting a golden edge on your life when you retire.

You can read our article on how to make a budget, which can also give you a more stable economy, More visit here: Besteconstuition.