Precautionary savings: 3 unstoppable tips for building it


It’s hard to save right now. And for good reason ! Inflation has been eating away at the purchasing power of French women and men for months. In August 2022, consumer prices increased by 5.8% compared to the previous year, which marks the first slowdown in the inflationary wave, informs the National Institute of Statistics and Economic Studies (Insee) . In July, the organization estimated the rise in prices at 6.1% over one year. This ebb would be attributable to the slowdown in energy prices. However, such a percentage remains high. Too much for most of the products in which French women and men like to invest.

Precautionary savings, as Planet has already explained, is also called “security savings”. It designates the capital assembled by an investor in order to protect against unforeseen costs, such as those likely to occur following an accident or an unexpected problem. In some cases, it is also used to finance simple projects, such as going on vacation for example. Therefore, it must be readily available at all times.

These constraints imply, quite mechanically, choosing investments adapted to this type of ambition. Several could do the trick. Consider the following possible products:

Some could also praise the merits of old PELs, which can certainly prove to be particularly profitable, but do not necessarily allow the money to be recovered before four years, without leading to the closure of the plan. Not to mention life insurance… which is simply not a precautionary savings product.

Ideal for preventing hard knocks, the precautionary savings must be sufficiently supplied to be able to compose a mattress descends. This safety net, as Planet has already explained, must represent between 5 to 6 months’ salary aside, not to be placed in a current account, otherwise you risk losing money.

Naturally, the precise amount that should be invested varies from one saver to another, depending on the amount earned. The simplest way to be sure of saving is to set up automatic monthly transfers from your account. Thus, you will smooth the effort and make it more painless.

To avoid suffering too much from inflation, some might be tempted to suddenly change course. This is not a good idea, believes in our columns the economist Alexandre Delaigue.

“We must expect a general depletion of savings and products whose return is based on fixed interest or on interest adjusted periodically on given dates will not be the most attractive”, he reminds d First of all, not without specifying that we should not, however, make a line on precautionary savings.

And he asserts: “Of course, we can always say to ourselves that it would be daring to recover all our money to invest in an apartment, but we must not lose sight of the fact that such an operation has a cost… and that the game is probably not worth the candle if the inflationary wave remains temporary”.