Accounting for income and expenses will help me correctly understand where the money goes and optimize spending. This can be done either manually, by making notes in a notebook, or with special applications for a personal computer or phone. Thus, the main points of expenditure will be clearly marked, which will help to exclude the purchase of unnecessary goods and services (Office of Investor Education and Advocacy, 2022). Consequently, the process of accumulating and saving money will be significantly simplified.
The second strategy is to set aside at least 15% of the salary for storage or investment. This approach will allow me to adhere to a clear rule, which in the long run will help to save and protect funds. In order to start implementing these strategies, it is necessary to determine the main purpose of savings, as this is an essential aspect of motivation. Prioritization will simplify the task of saving money in the long term.
At the moment, I would rate the degree of my investment risk as moderate. This is manifested in the fact that I realize that it is necessary to competently diversify my portfolio so that the number of high-voltage stocks is not too high. Consequently, most of the attention is paid to slow, conservative growth. However, in addition to this, it is permissible to allocate part of the funds for high-risk projects that may not justify themselves in the future. Given the current situation, looking in the long term is necessary, so stability is a priority for me, although it is limited by insignificant growth.
In order to be able to invest and save money while taking into account the payment of bills and the cost of living, it is necessary to adhere to a number of strategies. Therefore, they consist in highlighting the main items of expenditure that are important for the realization of basic needs. Thus, the rest of the income can be allocated for savings and investments.
Reference
Office of Investor Education and Advocacy. (2022). Saving and investing: A roadmap to your financial security through saving and investing. U.S. Securities and Exchange Commission.