Are you in the habit of having a emergency reserve? In the year 2020, after the arrival of the pandemic, those who did not have an emergency reserve were really taken by surprise, there are many people who ended up experiencing many difficulties, in addition to the disease itself.
Throughout this article, we will talk about everything that is most current in relation to the emergency reserve, because in times of financial crisis, and humanitarian crisis, it has become much more important to start creating the habit and reserve some money. Ready to change your financial style?
The Brazilian, I don't have the habit of separating a emergency reserve, perhaps because Brazil is still a third world country, so few people can really save money, however, in other countries it is already a very common practice.
Emergency reserve - Definition
As my name says, it is a way of saving money, which can only be used in an emergency. It is worth remembering that it really has to be used in emergencies, which is why you should not use it to buy new sneakers, a cell phone case, a blouse on sale, an online course or even to go on a trip.
Now, there are really situations that are adverse and that you really need to have money saved to solve, such as a plumbing repair in your house, or even to fix the car that suddenly broke down, or possibly for the particular medical treatment that needs to be done quickly, or even for situations like losing your job, for example.
The way of dealing with money needs to become a habit in the same way that people get into debt through bad habits, they can have prosperity from good habits, nothing better than starting by learning to have a financial reserve.
Emergency reserve amount
An interesting value to have as an emergency reserve, it is more or less 6 times the amount you spend per month on all your expenses. , as 30% should be used for investment as well as reserve.
It is necessary to know exactly how much you spend per month, in order to know how to have your emergency income value, exactly because life brings us surprises, and often catches us off guard, but for people who have financial planning, this situation ends not occurring.
For example, if you earn r$ 2000 per month, you need to have at least r$ 12000 saved, which can only be used as an emergency, you have to resist travel, launches of new devices, home renovations, etc. you need to do it with your monthly income, within the 70% of your income, because 30% you will always save or invest.
saving your reservation
First, it's good to understand that we don't save money, we invest it, so let's learn how to make investments with your emergency reserve. As we have seen so far, this money that can only be used in case of real emergencies, you will need liquidity almost immediately.
That's why you can't invest the emergency reserve in medium and long-term investments, because if you need to redeem it quickly, you will lose a considerable amount by redeeming the amount earlier than provided for in the contract.
A safe way to find out how to invest your saved income is through ”CDB”, mainly in digital formats, but they need to yield something around 100% of ”CDI”. There are other digital institutions that can make your resource work for you, such as Picpay and Nubank, for example.
Places to invest safely
- An option that has really been gaining a lot of liking from beginner investors, is the Selic treasure, in 2020, the result was negative, for people who wanted to redeem it ahead of schedule, it is necessary to leave the investments there, because this type of income it only works if taken after the period provided for in the contract.
- Another tip is to always diversify investments, as the loss of one ends up being offset by the gain of the other, which is why it is worth taking a look at the "CDB" of digital institutions, which is also a way to have a safe return.
- In case you need to use your emergency income, don't be sad about it, because that's exactly why you kept that reserve, for times when you needed to use it. If you don't need to use the entire reserve for an emergency, try and replace it with the results of investments or even with the 30% left over from your salary.
It is worth making a reservation for little money
This is a very interesting question, as it seems that you can only save money and make investments if you earn a lot of money, and that's not quite how it works. Well, we are talking about changing habits, when we change habits, we change results, it may even take a little longer for those with less money, but the result arrives.
And when it starts to arrive, your mind will already be used to saving and investing, and in this way the tendency is to grow more and more, so don't be discouraged if you have little money, start setting goals, making small investments, and better understand how to change your financial reality through knowledge.
For more information about the financial world, or even to find out about platform and brokerage applications, visit our apps category. Good luck!