1. Maintain a financial reserve
The foundation of financial literacy is the realization that it is necessary to have a certain amount of money in the personal or family finances. How much money a person should have in advance for unexpected spending is of course individual and depends on the preferences of each of us. "Generally speaking, everyone should have a financial pillow of at least three times their monthly income," says Miloslav Kufa (Ramfin). For the unexpected spending reserve, it is important that the money is liquid, so that one can immediately dispose of it. "Money on popular products such as building savings can not be immediately pumped, and if you save less than 6 years, you will not be avoided when choosing them with sanctions. Therefore, it is advisable to maintain a reserve on a current or savings account where there is no notice period, " Miloslav Kufa recommends.
2. Where to place funds?
Where's the money? It is not advisable to leave a large balance on your current account. It's the product mainly for paying and the overall management of household spending and income, so it's good to keep that amount and move the rest to the savings account. This avoids unnecessary losses if someone, for example, has misused your credit card. "If you already have the required reserves for current and savings accounts and use the full support from the state in other financial products, you can get into more demanding investments," Miloslav Kufa adds, with the fact that he is no longer financially literate One usually does not have the financial adviser.
3. Consider the loan consistently
The offer of advantageous loans is on us from all sides. It is often so easy to indebted people to stop using common sense. Consideration has to be given to whether it is really important to borrow in a particular case. Do you need the thing immediately and necessarily? Is loan offer really fair and transparent? "Consumers should only consider transparent bids with clear rules. They should have an overview of the amount of the repayments, how much they will pay, and what penalties and fees are possible, " says Tommy Stachi , Robin Stránsky. According to him, it is a guideline whether the provider or credit intermediary is credible, as well as its registration with the Czech National Bank (CNB). "People should be careful when they borrow. As of March 1, only 107 entities who have asked CNB for a license under the new legislation may offer loans. However, entities that did not apply for the license may be on the market, " warns Stránský, adding that the new legislation applies to banks and non-banking companies with very similar conditions, so a licensed credit company is a credible alternative to the bank.
4. Credit or overdraft: Good servant, but bad lord
Credit cards and overdraft loans work similarly. They are a clever way of having a financial reserve in reserve if you do not have your savings. Credit cards generally offer a no-interest period so you can get 50 or more free days. You also often get a bonus program to receive rewards for your shopping. So, if you have an overview of what your credit card can do and what it takes from you, you can earn it. "People should realize that their credit card money is not theirs, and they actually borrow every purchase. Irresponsible access to repayment of a credit card or overdraft will often get into a situation where they are regularly in a muse and get into problems with repayments and sanctions for reminders, " adds Stránský. The risk of unworthy debt is growing, when people try to borrow on installments elsewhere.
5. Watch out for unfair practices
It's not just in finance. Also in other fields there are sellers whose interest is not the client first. A typical example can be a door-to-door vendor of energy suppliers. The best defense against door-to-door sales is not to let the seller through the threshold. Practice shows that they do not hesitate to lie and act as your existing contractor or the Energy Regulatory Office. Some financial advisors have tried to contact potential clients by acting as a representative of the Czech Association of Insurers, wanting to check your contracts. It's incredible, but it's happening. So, if you are going to use someone else's services, just follow the recommendation. Last but not least, do not sign anything immediately and leave your time for thought.
Source: tz, edited editorially