How can you best protect yourself against the current financial turmoil? In any case, make sure that you can deal with unexpected events. Provide some buffers. NIBUD also provides a number of rules of thumb for buffers. This article provides a general summary.
These tips are intended to be informative and no rights can be derived from them. Everyone’s personal situation is different. You remain responsible for your financial choices. The NIBUD website (www.nibud.nl) is a good source of information. If you have any problems, seek help from qualified and reliable advisors.
Many people will tell you that getting rich quick often comes with some catches. Many thought that the AEX index could only rise. Many have also speculated on a future where house prices could only rise. Unfortunately, they now have an overpriced house hanging on their neck like a millstone. If they sell it, they are left with a residual debt because it yields less. Be wise and play it safe. Saving has an old-fashioned image, but it does have an advantage: if it is in a standard savings account, you can always access it. It’s really yours. In any case, you now know that rates and house prices can also fall.
Buy a house that fits your budget
If you buy a house in the future, consider purchasing the house for just a single salary. If the buyers are still young, there is a good chance that they will work less after the family expands. This is not entirely unthinkable now that childcare prices are rising. In addition, it is smart to calculate what remains of your salary if you deduct the costs of the second car and childcare. Perhaps it would be smart to only start working when the children have reached primary school age. It is also no longer self-evident that you will earn more as you get older. Job security has become a utopia. Work-related costs can include:
- A charwoman: 40 euros per week is 2,000 euros per year is 40,000 euros until the children leave home (21 years is average).
- Second car. Take into account: a car costs an average of 500 euros per month, which is 6,000 euros per year. After 20 years, these savings increase to 120,000 euros. This is to get to your work alone! Travel allowances are increasingly in danger of being tackled.
Saving money is the trick
Making money is not an art. Maintaining it and possibly propagating it wisely is a skill that you need to work on. Don’t be blinded by big cars and ditto houses. Often the associated burdens hang like a millstone around the necks of the owners. And a lot of property that only costs money prevents the accumulation of structural capital in the long term.
Buffers: loss of income
Try to save for the longer term. Make sure you have a buffer. There are plenty of stories of people who have a conflict with, for example, the UWV or the tax authorities and then have to wait months for their allowances/money, whether they are justified or not. Make sure you have a buffer of at least six months in the future. Benefit agencies also do not pay out immediately. If you are unemployed, this may also take some time.
Buffers: things that break
Can you handle it if your car gives up the ghost or needs major repairs? If you have to borrow money, it will always cost you more (if you even get a loan). Make sure you are not dependent on the goodwill of someone else: you may then come home from a rude awakening.
Buffer: peace of mind
Unfortunately, in this day and age, reorganizations are the order of the day. If you have some money on hand, it will give you a lot of peace of mind. If you have a top mortgage, you will run into problems if one of you receives 75% or 70% of his or her last earned salary. Finding another job takes some time. Save yourself headaches: create a buffer. Make choices: don’t look too much at the apparent wealth of others.