The coronavirus has become an integral part of our lives, so many have thought about how to save money during the crisis. Most people choose to stay at home and work remotely. As a result, many hard workers have freed up a lot of time, which now needs to be occupied with something. I recommend not wasting it on internet memes or funny videos. Of course, rest is needed. But everyone can use the same hours to good use. For example, save money. Here's a quick guide to improving your wealth during the 2021 financial crisis.
Sometimes we don't even notice where the money disappears in reality. Check all automatic card payments for the last month. Not sure what you charged 299,99 for? So why do you still continue to spend the family budget on what?
Some services and subscriptions have become free for some time due to the pandemic. Take advantage of the opportunity and put them in free access mode. A penny saves the ruble, by the way. Marketing research of competitors for this service will also not be superfluous. Perhaps someone offers similar "goodies" for less money. In this case, it is worth considering the real possibility of switching to another tariff plan.
Check all existing auto-subscriptions. Is the daily horoscope and music instead of beeps really important at the moment? If your goal is to save money, then it is time to stop unnecessary waste. Consider the following recurring expenses:
- Communal payments. It is possible that there are several extra lines in receipts. Think about whether the current Criminal Code really meets all of its requirements. If payments hit the budget, and the service leaves much to be desired, then the time has come to change this company. Estimate water and gas costs. Meters may need to be installed to pay less. The same goes for energy saving. Install special lamps that burn less resources. Replace too expensive gadgets with more economical ones.
- Home phone. If you are still paying for it but not using it, then why are these expenses?
- Mobile connection. Change the current tariff to a more favorable one. If you do not need that many paid minutes for calls, therefore, you should pay attention to offers with cheap internet and social networks.
- Plastic cards. Evaluate the benefits of the available banking products. It is better to replace "plastic" with a monthly payment or high interest rates for a more profitable one. This will help you answer the question of what to do with your money in the face of austerity. Spend wisely, of course. Take a look at the costs of existing overdrafts. If you cannot meet the interest-free period and constantly go into delays and fines, therefore, this card is definitely unprofitable. Check out the offers of other banks. Now many credit organizations are ready to open a card on much more favorable terms. Pay attention to such a useful thing as cashback. It helps turn every purchase into a source of savings. If your card at the moment cannot return part of the spent funds, therefore, you need to choose a more advantageous offer from other credit organizations.
- Premises for rent. When you rent an apartment for a long time, you don't really think about changing the terms of payment. But sometimes in the same area there are options that are no worse than the available ones. Moreover, their cost will differ significantly from the current housing costs. So why not save on this by changing your landlord? Another option is to take an apartment on a mortgage. In this case, you will also regularly pay for housing, but for your own. In the future, this option looks more successful and profitable.
- Payment for transport services. If you regularly have to use minibuses, trolleybuses or buses, try to save on this too. For example, purchase a special card that guarantees a reduced cost. Avoid taxis if the question is only about comfort and not about time.
Plan your budget
It is very important to consider all your income and expenses if you want to get rid of unnecessary negative account transactions. Almost everyone knows this, but, alas, does not, citing the busyness and uselessness of this process. But many leading economists strongly recommend keeping the balance of the family budget. Now you probably have more free time to think about how to save money in the 2021 crisis. So let's get down to planning.
If you are used to keeping track of funds the old fashioned way, then prepare a special notebook and pen in advance. The alternative is an Excel spreadsheet or mobile phone app. Use what you find most convenient and familiar.
Next, make a budget plan for a specific period of time. Usually take a year or 6 months with a breakdown by periods. Highlight the moments when tangible expenses are coming: New Year, birthdays of relatives, vacations and other holidays. Try to determine the months when it will be necessary to buy appropriate clothing for you or other family members. Do not forget to include in the plan regular spending: Internet, mobile phone payments, utilities, apartment rent, cars, existing loans, travel to work, food. The remaining money can be set aside for entertainment. It would also be nice to allocate something for savings. You don't want to waste it all, do you?
The resulting budget is recommended to be considered a framework that should not be exceeded. Any unnecessary waste can seriously undermine the current financial situation. So keep yourself together. Now you don't have to borrow money from someone to make it to the coveted advance.
Share your savings
Since, due to the prevailing negative situation with morbidity, many office workers have switched to remote work, their costs have been significantly reduced. Now there is no need to go somewhere once again, spend money on transport and gasoline, dinners in canteens. In cities where restrictive measures on social events are still in force, almost all leisure activities outside the home have also been canceled. So we watch movies without getting up from the couch, and we dine exclusively in our own kitchen, and not in fashionable restaurants with a multi-valued average check. And you also have a real chance to get rid of the already pretty boring bad habits that pull a lot of money out of your wallet every month. What are the nerves and smoke breaks, if all the work takes place in a comfortable home environment, and the meetings have switched to virtual mode?
FinExpertiza network experts claim that now it has become much easier to save. Quarantine made it possible to reduce expenses of Russians by an average of 30%. At the same time, residents of the capital can get rid of as much as 45% of regular spending. I recommend using all saved rubles wisely:
- Pay off existing loans. The faster you get rid of debt, the less interest you end up paying the banks. Start with those programs that cost you the least: MFI loans and cards. Next, extinguish ahead of schedule consumer loans, car loans and mortgages. You will clearly benefit if you can close at least one small loan right away. Do not forget to write a statement, otherwise the funds will remain in the account and wait for the moment of the standard debiting according to the schedule.
- What to do with the money saved from sitting at home? Set them aside for a specific purpose. If you plan to purchase something impressive (a car, an apartment or a country house), then in this case it is better to transfer the saved funds there for a faster result. And do not forget about the opportunity to start visiting foreign countries again after all restrictions have been lifted. This will also require money (and I think a lot).
- Create a kind of financial "safety cushion". Nobody knows what tomorrow has in store for us. So, just in case, I advise you to put aside about 3-6 monthly earnings in reserve, so that in the event of another crisis situation in the country you do not end up at the bottom. Spend this money exclusively on a rainy day. It is best to keep the funds in a bank account so that there is no temptation to spend them here and now.
Open an account with a broker
Let your money also work and generate regular income. Smart investments will help you get permanent passive income. Open an individual investment account (abbreviated as IIS). This is a brokerage deposit that is taxed at a preferential rate. With this financial instrument, you can invest free money in any assets: bonds, stocks, foreign currency, etc. Every year the state will compensate you for 13% of the funds invested in such an account. For this tax deduction to be the maximum possible, the salary must be more than 33,3 thousand rubles per month. If during the year the balance of the deposit was replenished by 400 thousand, therefore, you are entitled to compensation in 52 thousand. Also a good saving, I want to say. I recommend investing in a broker Abi.
However, not all so simple. Investments have a number of features that must be taken into account in order to properly manage your funds:
- The 13% deduction is relevant only for officially working citizens of the Russian Federation who regularly pay personal income tax to the budget. In this case, the total amount of compensation cannot be more than 52 thousand over the past 12 months.
- If you want to invest and open an IIS, you need to stay in our country for at least 183 days a year. And, of course, pay taxes.
It is allowed to reset the account and completely close it only after 3 years.
You can make such a deposit with a licensed broker. Most often, these services are provided by credit institutions (banks). Now the procedure is easily carried out remotely, so there is no need to go somewhere and stand in lines. On the website or in the mobile application, you can both register an account and replenish it, as well as select the assets you are interested in for subsequent investments. Tinkoff and Sberbank have already acquired similar innovations.
In order not to miscalculate with a financial partner, be sure to first study all the investment conditions. Otherwise, instead of asking what to do with the money, there will be a problem called “how to save what is left after unsuccessful investments”. Check a potential broker for reliability. If it shows up in one of the official lists such as the top 30, then such a company can be trusted. Examine all fees and compare them with competing firms. Make sure the broker will not charge you any additional withdrawal fees. Otherwise, such investments will bring more losses than income.
To open an account and its subsequent replenishment, you will need an identity card, TIN and SNILS. Go through the authorization procedure actually from home through the State Services portal.
After opening an account, you can already start studying exchange instruments to make money on the market. Read the articles, watch the video. Use the experience of traders with many years of experience to understand exactly how to act in a given situation. Now on the Internet there are a lot of free courses for novice investors.
After mastering the theory, you can start to practice. If at the moment the shares of world corporations have fallen in price, then it is time to buy them and wait for their further growth in value. Decide on the amount that you are ready to donate in case of failure (let's not think about the bad, but you always need to be on the safe side). Invest these savings in securities or any other asset that looks the most promising.
Don't overdo your investment. Give up even the thought of taking a loan or pledging property. The considered type of activity is high-risk and does not give a 100% guarantee of a positive result. Don't invest large sums in complex tools that you don't yet understand. Do not seize the last funds, since everyone who does not want to be left without a penny should have an "airbag". Try to spread your investment across multiple instruments. In this case, even the fall of one of them will be compensated by the growth of the other. Always consider the moment of loss and loss of savings.
Get a tax deduction
If you sleep well and have already paid for everything, then for some items of expenditure the state is able to compensate for part of the money spent. Officially working citizens can count on such a cashback, monthly and in good faith deducting 13% of personal income tax. You can get compensation under the following articles:
- payment for treatment or training (no more than 1,6 thousand within one year);
- life insurance (similar amount limit);
- purchase of residential real estate (up to 260 thousand, as well as 390 thousand for repaid interest in the case of mortgage lending);
- replenishment of the investment account (the deduction does not exceed the amount of 52 thousand for one year);
- charitable transfers (you can expect a return of 13% of all amounts).
Now the whole procedure has been greatly simplified. The declaration for receiving compensation can be filled out virtually if you have access to your personal account on the FTS website. Usually, preliminary registration goes through the State Services, since now visiting the tax office and standing in lines is not the best option.
All necessary documents can be attached to the online application in the form of scans. You will need a certificate of income in the form of 2-NDFL, a passport, as well as all documents confirming the payment. High-quality photos in high resolution are fine too.
Refinance old loans
If you are wondering how to save money during the crisis, then it is time to review your debts to banks. The fact is that recently, against the backdrop of a massive pandemic, interest rates on mortgage (and not only) lending have dropped significantly. If you are still paying with the old option, apply for refinancing. On a positive note, the Central Bank did not raise the key rate. Therefore, there is no reason to worry about a sharp rise in mortgage interest in the near future. Refinancing is a completely new loan at more favorable terms for you. Don't ignore this opportunity to save a lot.
To reduce loan payments, you must take into account the following features and rules:
- Refinancing is very rarely approved by banks for their own clients. Look for another bank that is ready to offer you a more interesting option.
- Be prepared for counter-conditions on the part of the lender: purchase of additional insurance, appraisal of the apartment, or some other commission for changing the interest rate.
- The service for refinancing old debts, as a rule, is available only to payers with a good credit history. Delays are a negative factor when the bank makes a final decision.
- To change the rate, at least 6 payments must be repaid on time.
Refinancing is not yet available without the personal presence of the client. So be prepared to leave home and visit the bank after all. Pre-conduct market research, make calculations in a special credit calculator and collect all the necessary papers. By the way, this procedure is also relevant for loans to MFOs. Combine them into one to lower your rate.
Pay all existing fines
If you are the owner of a private car, it's time to make sure that there are no debts for breaking any rules. Remember that if you accumulate fines in the amount of 10 thousand or more, you can not count on leaving the country. You simply won't be allowed abroad. Overdue debts are already transferred to the bailiffs.
You can check for unpaid fines and immediately pay them off both on State Services and on the official website of the traffic police. Be prepared to indicate the license plate numbers and your car. If you pay all debts at once (within the first 20 days), then their amount will be twice less. Unfortunately, this rule does not apply to all violations.
Sitting at home and not sure what to do with your money? How about a little challenge? Here are some interesting and promising examples:
- Set aside at least $ 100 for the first week. Next time, increase this amount by half. Do this whenever the next weekday ends. People who have already tried this method of savings claim that in the end they easily collected 35 thousand. Not bad, isn't it?
- Set aside 10% of the amount credited to the card. It doesn't have to be just a paycheck. That's why he is a challenge, so that there is some challenge to his own established habits. Will you be able to withstand and postpone the amount even from the transfer of friends for the pizza you paid earlier in the cafe?
- Combine business with pleasure. If you have long dreamed of eliminating some bad habit or shedding a few extra pounds, pay for each breakdown or miss. For example, if you smoke a forbidden cigarette, put 300-500 rubles in the piggy bank. The desire to break the rules will soon disappear, since it is not very pleasant to look at the decreasing balance of the salary card.
Save for retirement
It doesn't matter what age you are now. Sooner or later, a pension will come, which is unlikely to provide a comfortable life in old age. A global pandemic is a great way to think about the future and start procrastinating now. After all, you don't know how much more time you can work, right?
Think about how much you will need at retirement age in order not to need the most essential things. Use the following scheme as a basis: monthly profit for the current period + inflation. Try to decide on the asset with which you will actually make so much money. Set aside a certain amount regularly for investment. Do not forget to consider fixed costs so as not to suddenly start to live in poverty.