If you are one of the lucky persons who still have a job and your cost have reduced to the maximum. What should you do with all that freed up Cash?
Considering the long-term loss of savings value, it is clear that keeping the money “under the mattress” is not the smartest option.
My first suggestion is that you start an Emergency fund, if you don’t have one yet.
In general, most bank deposits do not offer a return of more than 1%, something that in the long term can cause the loss of purchasing power.
My second suggestion will be to Pay all your debt on your credit card.
It is very hard to make above 6% in any saving account or on stocks.
You make more money just by paying back all your debt.
My third suggestion is that you review your investment portafolio and work on a strategy for you to obtain financially freedom.
If you have the stomach to risk, another opportunity is investing in the stock market through certain assets. Currently, one of the best options is online brokers, which do not belong to any bank and which usually have lower commissions.
Some of the best known are eToro, XTB, DeGiro or Interactive Brokers, among others. I suggest that you check their fees anyway.
Only a few funds outperform the market!
You can also learn to do it yourself. You can learn about the company you invest and learn to pick yourself the best stock.
Please always be aware that all the risks is yours; independently of which broker or financial institution you choose!!!!
“Well I can tell you I haven’t changed my will and it directs that my widow would have 90% of the funds in index funds,” Buffett said. “I think it’s better advice than people are generally getting from people that are paid a lot to give advice. I know which side is going to win.” Warren Buffet. May 4th at the 2019 shareholders annual meeting.
My fourth recommendation keep working on your passive income.
I have started to work with a few side hustle to increase my passive income channels like: aroma therapy. It is very good for your health and your productivity.
If you want to check it as well, just join me. It is already delivering good results.
What do you do, so that your savings at least generate more than the inflation of your country? Would love to hear your thoughts.