Because of the coronavirus pandemic, more and more people are spending their savings. How to save money and maintain a “strategic reserve” even in such a difficult time.
As follows from the report of the Central Bank, over the past year, the growth of savings decreased by almost 14% – from about 2.5 trillion to 2.1 trillion. Experts give disappointing forecasts.
Economists believe that this year, the growth rate of savings will decline sharply. According to Ivan Kapustyansky, a leading Forex Optimum analyst, the forecast at 1.3–1.5 trillion looks more than reasonable. Due to the coronavirus pandemic, the average income level is falling, and many are left without work.
Obviously, this year only those who will be less or not affected by the consequences of the pandemic can make savings. Ivan Kapustyansky says that first of all it concerns state employees, employees of large enterprises, as well as employees who work in companies that have not suffered so much from coronavirus.
However, right now there will be more people who begin to make savings. According to Alexei Krichevsky, an expert at the Academy of Finance and Investment Management, the general problem with the mentality of US is that there has never been a specific program at the automatic level to preserve savings.
People are used to living in a big way, they thought that you can buy a TV more expensive, albeit on credit, that you can afford an extra credit card. Now, the analyst believes, this trend will change.
According to Alexei Krichevsky, multiple calculations of household expenses showed that without much damage it is easy to reduce about 20% of expenses. This amount can be delayed monthly.
“First you need to create your own reserve fund. Its size is about three to six monthly expenses. All household expenses, as well as payments on all available loans should be taken into account. Money should be stored in the most liquid and reliable financial instruments. These include short bank deposits, bank deposits on demand, cards with interest on the balance, short government bonds or bonds of large corporations. This is necessary so that in case of force majeure money can be easily used I without loss of accrued interest, ” Ivan Kapustiansky.
According to Ivan Kapustyansky, more serious amounts in excess of the reserve fund should be invested in longer-term and profitable assets. They should be distributed among different classes of assets, as well as in different currencies and in different markets.
The usual and most simple and reliable tool is bank deposits. In April 2020, interest rates on deposits in rubles for a term exceeding one year amounted to more than 6%. Dollars on deposits are accepted at an average of 1.6%, and euros at only 0.1%. But deposits are reliable since the payment of the amount of up to 1.4 million rubles (and its equivalent in foreign currency) is guaranteed by the state.
Investments in bonds issued by the state and large companies are about the same. Government bonds (OFZs) as well as deposits guaranteed by the state give a yield of 5.5–6% per annum.
According to Mark Goikhman, the chief analyst of the Teletrade company, bonds of companies are even more profitable, but they are much more risky.
He explained that in many cases investments in individual investment accounts (IIS), in endowment and investment life insurance, can be considered more profitable than deposits. Their advantage is that in addition to income comparable to banking, you can get a deduction of 13% on personal income tax.
Thus, in aggregate, it is possible to obtain up to 11–19% per annum or more. But these investments are less reliable than deposits, warns Mark Goichmann. In addition, you need to consider commissions and other payments.
Experts once again warn: in no case should one invest last money in risky assets. The lower the amount of savings, the more reliable investment tools you need to choose. Usually a simple rule applies here: the higher the potential return, the greater the risk.