Here’s the safe-net you need to protect your savings

Here’s the safe-net you need to protect your savings

Here’s the safe-net you need to protect your savings

Or better, three safe-nets

Here’s the safe-net you need to protect your savings

In order to have one’s financial situation under control, and sleep soundly, one should build at least three safe-nets.

  1. cash box: with the amount of money for current expenses.
  2. petty cash: savings set aside in instruments that quickly turn into cash.
  3. cash for large needs: money invested that must be liquid within a reasonable timeframe without damage, in case of need.

It is for this reason that, especially for those who are self-employed, it is preferable to have at least three separate bank accounts:

  1. one dedicated to business, for income and expenses related to the business activity, from which you must subtract the payments that will be made for VAT and taxes. Some could take this for granted, but it’s not. Especially when starting a business, one has the perception of having plenty of cash, because one fails to appreciate how much the payment of taxes (deferred over several periods) reduces the available capital;
  2. one dedicated to the family, for income and expenses related to family life. In this case, too, the impact of taxes must be evaluated;
  3. one dedicated to investments: on this account we will be able to build the road to a million. As we will see later, it is advisable to go to a bank specializing in online trading, offering low commissions and automatic accumulation plans.

Want to know more about financial check-ups, periodic savings and investment optimization? Read One Million for my Daughter https://onemillionformydaughter.com/

ABOUT THE AUTHOR

Pietro Di Lorenzo