Financial education is not innate for everyone. Fortunately, come on Instagramexperts like Maéva, author of the book “My budget on autopilot”, at the helm of the @monbudgetbento account, are here to make our lives easier. Every day, the specialist shares his good insights to better understand your finances at all stages of life and “manage your budget with minimal effort”. For Madmoizelle, he listed six best practices that appear to be so “old things” but which are actually especially relevant when you take care of them… early.
Take out death insurance
We often confuse life insurance with death insurance, saying we have to choose one or the other. This is false, the two things are not mutually exclusive, explains the expert. They simply have nothing to do with it: «It’s like saying “I don’t take out home insurance because I have the A booklet”. On the one hand you create your own savings, as in a savings account, on the other hand you subscribe to a service to cover a risk. And if this risk occurs, you have compensation from the insurance company. »
The utility is therefore not the same, agrees Maeva: “The difference is that when you take out death insurance to receive a capital of 50,000 euros in the event of accidental death, well, even if you die the following week having only contributed for 7 days, your family will receive the 50,000 euros. Unlike life insurance: until you have put the 50,000 euros (more or less) out of your pocket, your loved ones will not see the color of it. And it could take years and years to raise the money “.
Death insurance therefore works like home or car insurance: “if we have an injury a week after signing the contract, we are still covered”. Death insurance is taken out with an insurer. To access it you need to provide various information, such as age or potential health problems, etc. Maeva invites you to pay attention to the type of contract chosen: «There are different types of death insurance, some only work in the event of accidental death, others also cover illnesses. It’s like all insurance, you have to look at what is and isn’t included in the warranty.”.
Subsequently, the expert recommends taking out the insurance in advance and canceling it early. “People think about death insurance when they are old because they think they will die soon. However, the risk is not dying, but rather putting one’s family in a delicate position. If, for example, young children lose a parent, this will have repercussions on the financial organization of the family. The real risk is suddenly leaving your family with a lower salary. “That’s why it’s best to do it when your children are young and can’t fend for themselves.”
By young people Maeva does not mean 12-25 year olds, but rather young parents or young professionals. Anyone with children or elderly parents who rely on their financial support. “Later, when we ourselves are in our 70s, 80s, or 90s, our children are grown and standing on their own two feet, there will no longer be any real need to maintain this death insurance. And above all, if we have had time to save money, we die and have to pay death-related expenses, we have had time to save for those we leave behind.”
Please note that in the event of termination, we will not receive a refund, as this is not a savings. “There are death policies that allow you to contribute at the same time, but they are much more expensive and I don’t see the point”the expert decides.
Make a will
Maeva is categorical: you have to make a will young, because you never know when you will die. “So as we start to have some wealth, it’s important to say how we want our wealth to be distributed. Of course in compliance with the law! The point is to consult a notary, verify that we have done things correctly and optimize what needs to be optimized.”
Establish a mandate for future protection
Here is a relatively unknown preventive document. “It is for the moment when we are no longer able to make decisions by ourselves and for ourselves. So, because we are in a coma, we had an accident, we no longer have all our cognitive abilities, or we are starting to be senile. » This document lets you do that “appoint a specific person for decisions regarding our assets”, continues Maeva. For this to be effective, the delegated person must accept the role. “There is a form to download from the government website, with questions to answer. If you wish, it is also possible at a notary, but the file is available and accessible online, so it is not necessarily necessary.”
Save and invest
Tell yourself “I will save when I have responsibilities” it’s counterproductive, Maeva believes. “As a general rule, responsibilities come with burdens. So you might as well try saving when you’re young and have fewer financial constraints in your budget. It also allows you to benefit from time for your investments. Because one of the key criteria for an investment to become profitable is often time! »
Go to the market
“Yes, it’s an old thing, yes, you have to get up early, but it’s a good way to really save on the price of groceries! »
Buy a property as soon as possible
If it is possible, it is better to invest in the stone early, says the expert. “When you are young, alone and have the opportunity, I recommend buying a small studio or two-bedroom apartment, according to your means. We are not less demanding because we don’t need to look at surrounding schools, or local shops, we are more flexible. This allows you to purchase less expensive goods and immediately start capitalizing by repaying your credit. Then, this asset can be used as a contribution the day we purchase something larger as a family. Or we put it as a rental investment and buy something else with the income generated! »
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Source: Madmoizelle
Mary Crossley is an author at “The Fashion Vibes”. She is a seasoned journalist who is dedicated to delivering the latest news to her readers. With a keen sense of what’s important, Mary covers a wide range of topics, from politics to lifestyle and everything in between.
