It is certainly no secret that inflation is expected to continue to be relatively high, so we will pay more in a variety of spending areas.
What are we doing now?
In bond investments - bond investments with a relatively low level of risk and reasonable yields to maturity - it makes less sense to sell now.
The family loan portfolio - time to taper and reduce the total scope.
You should consider reducing your overdraft and replacing it with cheaper credit. For example, taking a loan against a training fund.
Household expenses are increasing following the increases in product prices as a result of inflation and the increase in interest rates, which affect, among other things, an increase in mortgage payments and interest payments on additional credit.
Therefore, it is suggested to make an effort to reduce expenses, and this is so that we do not reach a situation where we are forced to "eat" from the savings of the household.
Reducing the living space - changes in the family, such as the departure of adult children from the parents' home, etc., are an opportunity to reduce the living space, and as a result to reduce expenses.
Investing in value stocks with appropriate diversification - using ETFs, mutual funds, etc. - can definitely help.
The pension investments - the continuation of the pension provision is essential.
However, an annual check of the suitability of the pension instruments for us as savers, as a result of the investment policy chosen by us and its adaptation to changes in the capital markets, is important.
On this occasion, an examination of the expenses involved in managing these devices and the possibility of reducing them - are also a step that can improve financial management.
Emergency fund - it is advisable to make sure that the household has a completely liquid emergency fund that will allow for existence for 8-12 months.
This is in case of events that affect the household economy so that you will need to use this fund.
Cash money // Photo: Dodo Greenspan,
No less important than all those things is, of course, the essential need to involve the members of the household, including the children, in the financial management of the family budget, while establishing common priorities for the whole, those that take into account the needs and desires of everyone, but also the financial ability.
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