Nadezhda Grosheva, an expert at the NIFI Financial Education Center of the Russian Ministry of Finance, gave some simple tips to help you prepare for unforeseen situations.
1. Personal cash
In recent years, we have become so accustomed to paying cashless (cards, St. Petersburg transfers, contactless payment methods) that changes in the operation of payment systems lead us into a stupor. Keep some cash (which could cover all your expenses in two to four weeks) just in case. So you definitely won’t find yourself in an awkward position with a non-working card.
2. Analyze your expenses
Look at all your expenses for this year. Where did the money go? What expenses turned out to be more than you expected? Were there any costs that you did not expect at all? Are there expenses that can be waived? What obligations do you have (such as mortgages and mortgage payments) and how can you reduce them?
3. Audit your assets
It’s time to look at your assets. Make a list of the properties you own. Do you use everything? Maybe there is a suburban area where you have not been for a long time, and it can be rented? What are you investing in? It is worth checking the cost of portfolios, mutual funds and checking the strategy with the manager.
4. Make a financial plan for 2023
Describe the income and expense budget. Is it possible to increase your income in 2023? Make a list of ten items that will include ideas to increase your income. Describe the roadmap, the objectives for this year and the milestones for the next five years. This is very important for the financial plan. Evaluate the health status of family members, the need for training, etc.
5. Don’t expect miracles
We all want to believe in miracles in the New Year. And this is often used by scammers. They use human feelings as simple as greed and fear. They convince you that you are smarter than everyone else and with the help of miraculous strategies you can get rich quick. But alas, as a rule, this leads to ruin. Be vigilant and assess your strengths.
