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A Fortius Finance Guide: Doing Finances the Right Way in Brühl Baden
Growing up, becoming independent, and learning about finances go hand in hand. While we grow up, we start to understand the incredible amount of effort our parents put into parenting, and once we become independent, we start to understand how much money someone actually needs to live a comfortable life.
Groceries, rent, bills, studies, clothes, shoes, snacks, and things required to enjoy our hobbies: almost everything in the world revolves around money, and at some point, in our lives, we will have to make wise decisions when it comes to it.
There are many ways to engage in the process of reaching financial stability and well-being, but the most reliable ones involve saving, investing, and engaging in a form of insurance or counseling. However, a lot of people are not truly knowledgeable about these aspects of finances, so in this article, we will provide valuable information on the main three characteristics of finances you should be aware of, with the first one being saving.
Saving: Safest Way to Accumulate Wealth
Saving is a very important aspect of our society, and although there are many ways to do it, the main objective of it is to accumulate wealth as time goes on. There are a lot of reasons for people to save money:
- Achieving a goal or dream in the long-term or short-term run;
- As a form of preparation to face undesirable situations;
- To prepare the future of your child or a family member;
- To live a comfortable life during your senior days.
Regardless of the reason behind your saving adventure, it is always recommended to do so, and professional economists recommend at least save 10% of your monthly income for future situations, but around 20% is the desired percentage.
If you do so, you will accumulate from 120% to 240% of your income in a year, and in a time frame of 5 years, it will turn it into 600% to 1,200% of your monthly income. For a person that earns $1,000 per month, this can be translated into $6,000 to $12,000.
For a lot of people, this might not be seen as much, but the biggest advantage of saving is that it is consistent and safe since there are no risks involved in the process. Some financial organizations, like banks, provide you with certain benefits that will improve your finances, but it depends entirely on each organization.
if you are interested in more detailed information about saving, you should check https://en.wikipedia.org/wiki/Saving. There’s also the option of investing, which can be considered a much more profitable financial take, but it has its cons.
Investing: A Blessing or a Mistake
Investing can be described as a form of saving since you are putting money into something for the sake of increasing it over time. There are three very different things compared to saving, though:
- The time it takes to earn more money is significantly lower;
- The amount of profit you can earn (although depends) is significantly higher;
- There’s a risk of not only not earning money, but losing it in the process.
That’s why investing can be seen as a risky bet that can either turn into a blessing or turn into a mistake. Generally speaking, there are some rules we can check on. The riskier the adventure is (considering the amount of money invested), the more profit you can earn. Although there have been exceptions to this rule, it is a very common thing.
There are many forms of investing. Some people like to invest money in stocks, while others invest money in cryptocurrencies. Others start businesses while others purchase things to work by themselves to build a business from the ground.
Regardless of the way you decide to invest, you will have to risk your hard-earned money for it to turn into profit, but there are certain things you can do to improve your chances of success, and one of them is learning the basics of investing.
Researching and learning is a very important aspect of investing since it is something that requires knowledge, experience, and preparation. No matter what type of investing you decide to go for, you will have to learn about the niche and understand what methodology will give you a higher chance of success, and this is the case for all forms of investing. You can also hire a professional finance counselor to guide you through the process, and this point takes us to the next segment of the article: insurance and professional help.
Finances in Brühl Baden: Counseling and Insurance
A financial counselor is someone who has professionally mastered finances in a way that can bring benefits to people. It is a very good investment for those who are looking to save or invest but have no idea about what steps to take for a successful journey.
Despite the prices involved in their services, some people might benefit incredibly from financial counselors as long as they hire the right service provider. Research is absolutely necessary to do so, so you should engage the process with care and patience.
Now, insurance is the way people protect their assets, their health, and their families in case something bad happens. To some extent, an insurance company will provide you with money depending on the situation, and it will also grant services depending on the type of insurance you go for.
Health insurance provides you with free doctor visits and pays up for certain treatments and surgeries that you might require due to disease or incidents. House insurance protects your house in case something bad happens to it, and car insurance will protect your car the same way.
There are many forms of insurance, and although you have to pay for it, it usually brings more benefits than downsides. However, you should also decide whether it is worth it for you and your circumstances, so a counselor might help with this as well.