When it comes to saving money we all have our unique tricks. At Vivid, our goal is first and foremost to help you make your money grow. So we asked our Vividian experts to share some of their best money tips.
Since I started working right after graduating from university, I’ve applied a strategy that I think works quite well over time. Every month, I put aside around 15% of my salary to a savings account. That is the part of my salary that I don’t touch. On this amount, I set up an automatic process that will take a portion of my monthly savings, and invest it in the ETF of my choice.
To be honest, I am not an active trader and I use this more like a long term growth strategy for my investments. Of course, you need to verify what investments are right for you. For me, personally, I use balanced ETFs and I mostly invest in low cost products. That affords me not to buy expensive mutual funds products that would eat up my investment, but to invest in a passive product that is not very expensive. Gradually every month, some money will go into it and I can watch my money grow.
When it comes to money advice and investing for your pension, I really like Harry Markowitz’s approach.
Harry Markowitz was a pioneer of modern portfolio theory. It is quite simple to follow his method to get a good pension when getting older.
According to him, every year you should divide your portfolio in three equal portions. The first third should be invested in stocks and indexes, the second one in A+ obligations and the last one in precious metals.
At the end of each year, you should sell your positions, convert them into one currency and repeat this operation every year. In his opinion, if you do so, your pension will be safe and will only keep growing.
Of course, this approach is a good illustration of Markowitz’s theory, but it might not be suited for everyone.
I’ve always thought that building experiences and memories is a fundamental part of being human. Unfortunately, more often than not it doesn’t come for free and we have all experienced that buzzkill feeling of guilt that accompanies spending money on things to treat ourselves.
The way I found to overcome this feeling and take my budgeting skills to the next level is allocating a part of my income to a fun money saving account while using my Vivid account.
Here’s how I do it :
With some discipline and patience I managed to get rid of the guilt when spending money on nice-to-have things for myself.