A long sailing trip requires a certain amount of financial liquidity: for this reason, it’s necessary to plan and set up a savings plan.
Many people think that to undertake such a project, you need to be wealthy, but that’s not necessarily the case. It’s more important to know how to save, and there are many ways to do so, here are a few:
- opening a savings account
- life insurance (third pillar)
- purchasing stocks and funds
- changing lifestyle, avoiding unnecessary expenses
The savings account: is the first place people think of depositing their savings. Unfortunately, the interest these accounts yield nowadays is really negligible, we’re talking about 0.15% or less. However, it’s still worth setting a monthly amount (according to one’s possibilities) which will be automatically transferred from the checking account to the savings account.
Life insurance (third pillar): is another interesting and fairly safe savings method, allowing you to pay a set monthly amount agreed with the insurer for a certain period. There are variants with higher returns based on secure funds that still guarantee a minimum return in case something goes wrong.
Stocks and funds: is certainly riskier compared to a savings account, but if purchases are made wisely, choosing, for example, stocks of solid companies that may pay dividends annually, these can yield several percentage points over the years. It’s definitely an option to consider for diversifying the various ways of saving.
Lending: is an investment system that is also emerging in Switzerland. Basically, there are companies that evaluate and issue loans for businesses and individuals, but at the same time, it’s the individuals and businesses that fund these loans, earning up to 10% of the amount invested in the loan (clearly depending on the risk taken).
Lifestyle change: when we are on the boat, we will inevitably have to change our lifestyle (unless we have a nice bank account), control costs, and avoid unnecessary expenses. Why not start right away? It’s very interesting to see how it’s easier to save than to find ways to earn more! And this without too many sacrifices…
Personally, I started setting up a list of monthly expenses and, for example, I realized that:
- I watch TV very little and can do without the Italian “trash” channels. I canceled the TV subscription, purchasing the satellite system with the RSI card (a one-time payment).
- I can get the internet from my office downstairs, so I canceled the home connection.
- the company “flat” mobile subscription allows me to use the phone privately as well, thus eliminating the private phone.
- I pay some membership fees to associations I haven’t participated in for years, eliminated those too.
- if I were to quit smoking, I would first gain in health, but I would also save a lot.
In short, if I just take these detailed points, we see that the savings are substantial:
- TV and internet subscription: CHF 74.- x 12 = CHF 888.- / year
- mobile phone: CHF 99.- x 12 = CHF 1,188.- / year
- membership fees: CHF 300 / year
- cigarettes: CHF 8.- x 365 days = CHF 2,920.- (minimum!)
With just these 4 points, I can save CHF 5,300.- a year!
Then there are those expenses resulting from impulsive purchases, often related to electronic “gadgets” that I love so much, but after a brief enthusiasm, they end up forgotten in some corner of the house collecting dust. Before buying something, I’ve made it a habit not to take it immediately and to reflect on whether there is a need, saving me money here too!
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