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Putting Together a Financial "Pillow"

Every economist talks about the need to save money, but not everyone does it. One of the main reasons for such inaction is the misconception that saving money is possible only with a large income. Our payday loans company article is about how to create a financial cushion even in a crisis, how much you need to save and where to store your savings so that they do not depreciate.

Why do you need a "pillow"?

Whatever the financial situation, the "piggy bank" must be regularly replenished.

1.     In case of an unforeseen situation, you will be provided with the means to solve the material needs that have arisen. The accumulated money will allow you to ride out the “storm” without limiting yourself to basic needs. Also remember that, if necessary, you can take out an express loan from the "Before Salary" company.

2.    Having even small savings gives a feeling of security and peace of mind. According to psychologists, the feeling of “bottom underfoot” reduces the level of stress and, as a result, the propensity for ill-considered financial behavior caused by fear and panic.

3.    If the outcome is favorable, you can use the accumulated amount to increase income or achieve your material goal.

The famous Latin expression “if you want peace, prepare for war” is also relevant for the budget.

Saving More:

The size of the financial "pillow" is influenced by 2 main factors: the person's age and his profession. As a rule, young people either have no savings at all, or their size is still insignificant: the right priorities have not yet been formed and financial responsibility is not sufficiently developed. With age, the realization of the need to save money comes, and more opportunities appear. In this regard, two simple but important conclusions can be drawn:


The sooner you start saving money, the more you can save according to the pattern of online payday loans california. Even if you don’t have enough income right now to set aside a large amount, start small it’s better to save a little than nothing.

It's never too late to start. If your youth has long been left behind, do not think that the idea of ​​a financial "pillow" is no longer relevant for you. Even if you start saving at least 1000$ a month, in 10 years you will have accumulated 120,000$ - a good increase in retirement.

The second important factor affecting the size of the financial "pillow" is the profession. By being a sought-after and “expensive” specialist, it will become easier for you to find a high-paying job and, accordingly, save more money every month. The crisis has once again shown that people with low incomes are very vulnerable. After all, not having savings, losing a job for some means completely losing their livelihood. To avoid such a difficult situation in the future, pay attention to developing your professional competencies and increasing your value in the market. Perhaps you should get a new category, take a more responsible position, or, on the contrary, change your direction of activity to a more promising one. Of course, the more your income, the greater the amount of savings.

How to save and increase capital:

To prevent this from happening, best online payday loans advise you to reconsider the way you store your financial "pillow". Consider bank deposit options with a monthly top-up option to regularly add some amount to your deposit. Now banks offer interest rates on deposits of about 5% per $. To increase profits, you can buy bonds: a yield of 6-8% per annum is quite real. Bonds can be bought in the same way whenever possible. However, we do not recommend that novice investors buy stocks and trade. Having succumbed to the temptation of high earnings, in most cases people only lose money.

Keeping money in cash at home makes it cheaper. Remember inflation: the same amount in a year will have much less value than it is today. And if we talk about the horizon of 5-10 years, your money will depreciate even more.

Take care of your future, start saving money according to payday loans california as a "safety cushion" this month. By showing discipline and competently approaching the storage of capital, after a while you will have a decent amount of savings, even with a small income.

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