An unexpected vehicle repair, work to finance in your home or even unplanned medical expenses, it is crucial to keep a sufficient savings cushion to deal with hardships. What about checking account? How to distribute your income between your different bank portfolios?
According to MoneyVox, the answer is clear: you should not keep too much money in your current account, but only the amount necessary to meet your daily expenses: rent, bills, shopping budget, etc. The money invested on a current account not being remunerated, it does not generate interest and therefore directly suffers the effects of inflation. The magazine specializing in economics therefore recommends keeping the equivalent of a month’s salary, accompanied, if you wish, by a small mattress of 500 euros to avoid overdrafts at the end of the month. What to do with the rest?
In general, financial institutions recommend a mattress equivalent to three months of income. Thus, if your income is 2000 euros net per month, it would be ideal to count with savings of around 6000 euros, placed in a remunerative account. These accounts are secure and available at any time: Livret A, LDDS or LEP. The rates of remuneration for these booklets are regulated and have risen sharply in recent months.
Life insurance, explains MoneyVox, can be useful in the event of a medium-term project: buying real estate or changing your car. Attention ! low-risk contracts should be favored. A last advantageous option is the subscription of a long-term PER which will supplement your income when you retire.