The good old passbook offers security, but also a low return. To give you an idea: if you deposited 100 euros in a savings account 10 years ago and have not touched it since then, these 100 euros (despite the interest received) are only worth 87 today. euros… The reason? Inflation, loss of purchasing power, everything becomes more expensive… In short, your money loses its value.
Become a savings and investment ace
So, isn’t it better to invest your money? Investing it in stocks, funds and/or bonds is certainly a good alternative if you don’t need it right away. Investing provides a potentially higher return, but also involves risk.
The information below will help you navigate the world of investing. In particular, we discuss your financial serenity, we introduce you to the stock market and we show you the advantages and pitfalls of investing. Finally, we would like to end with “sustainable investing”, which will again be a major trend in 2022. Take the time to read the information and advice we have gathered, and put the odds in your favor to save and invest. !
What about your financial serenity ?
There is indeed a direct relationship between happiness, financial situation and serenity. Being satisfied with one’s financial situation boosts mental well-being. Moreover, the more serene you feel about the future, the more likely you are to be happy. It is therefore essential to combine these two aspects.
Curious to assess your level of financial serenity? In this case, know that you can objectify it via our ‘ Financial Serenity Barometer ‘. Take the test now, and even more: compare your score to that of the average Belgian and then benefit from sound advice from reliable NN experts. What free you from your worries and give you an extra boost of confidence.
What exactly is meant by financial resilience?
It’s not when you retire that you have to worry about your financial situation, it’s now that you have to watch your budget closely. If you manage your finances well throughout your working life, you’ll already be on the right track.
But that’s easier said than done, because there’s no shortage of challenges. There are four types of resilience on which we can rely to look to the future with serenity: financial, intellectual, social and mental. This is obviously the first that we will discuss in detail.
Financial resilience manifests itself in different areas:
Above all: have enough liquidity (cash) .
Protect against financial setbacks with a savings cushion or insurance .
Make arrangements today so you can enjoy a worry-free pension later .
Build up reserves so that you can lead the life you want. What will you do if you want to take a trip around the world, take a sabbatical to go back to school or devote yourself to volunteering?
Build a financial plan that works
A financial plan takes into account the different components of your assets, your projects and your plans for the future. Based on this plan, then identify any gaps with the help of an expert: are there any adjustments that need to be made, are there enough prospects for the future?
In short, it is a question of making an in-depth analysis of your financial situation, your income and your expenses, the risks in the event of illness, incapacity for work, pension and death .
It’s a fact: those who draw up a financial plan (and who really stick to it…) are more serene about their own financial future. But how do you go about doing it wisely? Start by asking yourself 3 central questions:
What is my current financial situation? In short, take stock of your income, expenses and assets.
What are my short and/or longer term projects? As far as the long term is concerned: you can find on mypension.be a precise estimate of your future legal pension and the date on which you can actually retire. You will also find there the amount of supplementary pension that you have already saved through your employer or your self-employed activity.
How do I set up my financial plan?
Important note : It is essential to regularly evaluate and adjust your financial plan. And this according to the evolution of your financial situation (eg new job with a higher salary) but also family (eg expansion of the family).
In summary, your financial plan follows your life course and systematically takes your wishes into account, it gives you a better overview of your financial situation and shows you the opportunities, but also the risks. Thanks to him, you have better control of your financial situation and therefore you have more peace of mind.
Investing, what exactly is it ?
Belgians remain viscerally attached to their beloved old savings account. No less than 278 billion euros are based there. And this while the rates are historically low. In our country, the legal minimum interest rate for regulated savings books is 0.11%. With an average inflation rate of 2%, this actually means that your savings are rapidly losing value.
Even worse, the longer you leave your money in your savings account, the more your purchasing power diminishes. And even worse: you risk losing money!
A bit of common sense, a roadmap and a guide.
Invest then? This is definitely an interesting option worth considering. We can make the comparison with a second-hand website on which the law of supply and demand plays. If many Internet users bid on a used car, its price increases.
It’s a good thing for the seller, but it’s less interesting for someone who wants to buy the car at that time. And conversely: if few people are interested in the car, the seller will obtain a lower price and it is the buyer who will get a good deal.
Anyone can invest. You don’t have to be immensely rich. All you need is a bit of common sense, a clear road map and a reliable guide to go with you.
Everything happens in the stock market.
This is where companies find fresh money to develop and/or innovate. It is the investors who give them this money, but obviously not without compensation: they expect something in return. Because what every investor wants above all is to profit from his investment.
In exchange for the money you invest, you own bonds and stocks . In the case of a bond, you play the role of a bank. You lend money to a company and the company pays you interest. By acquiring a share, you become a co-owner of the company and therefore also share in the profits or losses.
The differences at a glance:
Share : fraction of the total capital of a company. As a co-owner, you participate in profits and losses.
Obligation : proof that you have lent money to a company. In return, it earns you interest.
government bonds : in addition to companies, governments also solicit loans from the general public. A loan issued by a state is called a government bond.
Funds : collects money contributed by various investors. The fund then invests all of the capital in various investment products, such as stocks or bonds.
Investing is above all about making your money work! You invest your money so that it will be profitable in the long term. It’s more risky, but if you follow a few basic rules , you can stay in control.