The rapid increase in food, fuel, and especially the ever-increasing prices of electricity and gas will soon be fully absorbed into family and personal budgets. According to experts, the transition from a period of low inflation to modest inflation will take time. But I have to prepare for him. This means limiting unnecessary spending and saving your pension for as long as possible.
The 10-20-30-40 rule
With regard to the economic situation, you should map out your family budget as soon as possible and again use the well-known data rule 10-20-30-40, the more the better, recommends David Kuera, financial advisor of the Partners group.
According to him, ten percent should be collected from a certain monthly loan until the short term of the reserve. That has the highest priority, and if it’s not created, you’re stuck with it. Roughly 20 percent of the monthly income is to cover the active relationship and invest for the future.
Less than a tenth of the monthly income, roughly ten percent, is spent on housing. And the last hundred, where 40 percent of the monthly income goes to the household, or to the operation of the household.
Kam dt ten percent
According to the experts, the first ten percent should not be decided to be kept in a pocket or a box hidden in one of the books of the home library.
Currently, these pensions are no longer offered to be deposited in a savings account or an annuity, where the pensions are available at any time without any limit, to Kuera.
He mentions that thanks to the increasing annual rates on the part of the Czech National Bank (NB), banks have also been increasing their loans and mortgages in the last months of the year. In some cases, today clients can even get over 20% a year. It is therefore necessary to check whether the bank does not make it conditional, as is the custom with some of them. For example, after cash transactions or withdrawals, using a credit card or in a deposit.
In practice, it turns out in such a way that, in order to get a year over three percent, the guarantor must not put more than, for example, 300 thousand crowns on the mortgage, I can fail, but I cannot exceed 600 thousand. This means that he has to invest between 300 and 600 thousand crowns. Another example is that only those who have an investment of more than 600 thousand crowns can earn more than three percent a year.
Where does 20 percent of the income go?
And then he gave the hundred of the mentioned rule, this time it was 20. Do not use this hundred people for retirement in a pension plan or you in fake funds. The family breadwinner takes out a life insurance policy from this package in the event of a long-term loss of income or in the event of illness, even with consequences. And in the first place, parents or even ancestors from this estate set aside pensions for children or in-laws for the construction project.
The short-term reserve should cover even the dream income due to illness or an accident, which is why there is such a financial compensation for female entrepreneurs without sickness benefits, explains dl Kuera.
In this regard, he particularly recommends investments, especially in combination with conservative tools, such as the construction contract. Although annual investments in the stock and bond markets are not profitable, long-term investments are the only way to beat inflation.
For example, the global stock dollar index MSCI World Index in the period from the peak in 2007 before the crisis of 2008 to the day of decline in April 2022 brought a cumulative return of 213 percent. That’s 7.9 percent of ron.
Yes, investing requires a certain amount of courage and courage. I believe that the world will want to work longer and indefinitely, that companies will want to produce products, make profits and people will want to work, warns the financial advisor.
Housing rent and related expenses
Less than a tenth of the monthly income, roughly ten percent, is spent on housing. Not bad if it’s him or the mortgage payment. This amount also includes all fees related to housing. Such as payments for water, electricity, gas and waste collection. The first thing you need to do with this data is to be cautious.
With regard to the announced health insurance for electricity and gas, it is important to correctly adjust or wind up the monthly deposit for these items. The budget is then not threatened by high arrears for energy, notes the consultant.
He recommends that special attention be paid to families with mortgages, which this year or in the fifth year of the fixation of interest rates. Their monthly payment will also increase by several thousand. What is the payment for about 50,000 households that took out a mortgage five years ago at a two percent annual rate. I think it’s between six and seven percent. One thing is to extend the maturity of the mortgage, and therefore the payment.
Instead, according to the experts, you should put other types of consumer credit cards, credit cards, and other types of bonds in your wallet. They will be paid or at least consolidated. the dispute during the consolidation of the vr is in the tens of thousands, but also in the hundreds of thousands of crowns.
Yes, it was an exception, but we also had a record holder, who consolidated expensive loans from non-banking institutions for a total of over 200,000 crowns, confirms Expobank retail banking editor Irena Jandkov.
According to the Czech household about the possibility of consolidating all faiths into one, many of them are still worried about the complexity of the process. And that’s a mistake. It’s easy to find out online too. Duet is my name.
Where does 40 percent go?
The remaining 40 percent will be spent on food, consumer goods, travel to work and bicycles. Also family leave, travel, vacation or pet house expenses. First of all, households find the largest space for the dream of residual income. And that means changing your shopping habits. Even for the price of dreams, I would spend it on other things, such as going to the cinema, restaurant, leisure park or shopping for clothes and shoes.
According to Irena Jandkov, households should also think about potential disputes for banking services. What is the price not only for the investment of the vry, but also the fees for the transaction services. Due to inflation and health care, households need to revise their budgets much more. Zane is consumption, but also fees on all fronts, k.
Find out how many crowns you cut from inflation disputes
Petr Dufek, the chief economist of the Creditas group, confirms that limited consumption plays, and will continue to play, a key role. According to him, households still have to deal with the fact that the health care of electricity and gas is not over, or rather, that inflation has not completely passed.
Therefore, it can be calculated that inflation in the following months according to vol. However, what values will culminate in ct is essentially not even sun. In any case, it will mean a further decrease in the real purchasing power of the population, which will be reflected in the restriction of household consumption, and therefore in a further slowdown of the economy, concluded Dufek.