Most citizens have small savings, which they seek, if not increase, then at least save from inflation and exchange rate fluctuations. Against the background of the crisis in the economy, a completely logical question arises: how to preserve your savings in 2021, where to invest so as not to be at a loss? Consider the most popular investment areas and their safety.
Options to save money from inflation
The choice of options for how to save and protect hard-earned rubles or currency depends on several factors:
- savings amounts;
- the period during which you are going to keep the money;
- preservation goals: to save from inflation, save up for a large purchase, get additional income;
- the level of risk you are willing to take;
- the level of financial literacy or your willingness to improve it.
Create a financial cushion
This is a conditional start for any strategy. When we have a reserve of money for two or three months of life, it helps us make decisions more calmly. It is worth keeping such funds either in cash or on a deposit in a reliable bank, from where you can always withdraw them.
Divide the airbag into three currencies
Divide into dollars, euros and, for example, yuan. In the future, try to adhere to the same principle. This will help preserve fixed assets, because if some currency falls sharply, then the other is likely to rise.
Pay off all loans
Loans work well only in one situation – when the income from them exceeds the interest payments. For example, if you took a loan from one bank at 5% per annum and put this money in another bank at 10% per annum, without risks and with insurance. Then this is a smart financial decision. If the loan needs to be repaid, and the loan money does not earn anything, it should be closed as soon as possible.
Bank deposit
This is a classic money saving tool with minimal profitability. The contribution helps to make a profit within inflation, that is, how to stay at the same level. If you planned to make money, then most likely it will be difficult to make it through the contribution.
If you decide to use a bank deposit to save, then follow these tips:
- Find out if the bank insures depositors’ funds
- Choose a bank with a long history and an average interest rate. If the supply is significantly higher than the market average, you should be careful.
- Check how interest is calculated. More often, for the best offers, interest is paid at the end of the term. Decide to withdraw early – you will lose all income.
Precious metals
Gold and silver, which have always been regarded as reliable assets, have been actively changing their value recently. In 2021, some experts predict an increase in the price per ounce of the yellow metal from $ 1,050 to $ 1,138. The price is now fixed at $ 1,184.
Therefore, investments in precious metals can also be considered quite reliable. It is worth taking a closer look at such a metal as palladium, which maintains its position in the market, regardless of external factors.
Mutual funds
A mutual fund is a kind of collective wallet. Investors transfer money to the company that manages the mutual fund, and she invests it at her own discretion. You do not need to understand stocks and the market situation: financial specialists will determine the most profitable and reliable assets themselves. As a rule, you can become an investor in a mutual fund even with a small amount.
You can choose the specialization of mutual funds: some work only with precious metals, others invest mainly in securities of the oil and gas industry, and others are universal. In order to withdraw your savings and exit the mutual fund at any time, give preference to open-ended mutual funds. In interval funds, shares can be sold only during certain periods. And from the closed ones, you will get money after the expiration of the fund’s operation. You can buy shares online: it’s no more difficult than buying a plane ticket.
Investment life insurance
This tool is an opportunity to protect yourself and your loved ones from spending if something happens to you, and to protect money from inflation. Investment life insurance works like this: you enter into a contract with an insurance company and let it manage your finances. After the agreement expires, you receive money and savings. The latter are divided into two parts: guarantee and investment. The warranty part is your money back. Investment – additional income that has accumulated if the situation in the stock market was favorable.
Insurers can offer you two programs: aggressive and conservative. In the first case, they will invest in riskier stocks with a high level of profitability. In the second, they are stable and low-income. It’s up to you to choose.
Reliable securities
In the field of securities, the main investment law also applies: the higher the yield, the greater the risk. If you do not have experience in this area, it is better not to try to assess the potential of companies by eye, but to start with the most reliable options. The most stable securities are government securities – federal loan bonds. They may not bring a lot of income, but at least they will help to defeat inflation and not lose savings. Preferred shares are considered a safe investment – those securities for which dividends are known in advance.
