Some mistakes when dealing with finances can be really expensive. We tell you how you can save money and avoid financial mistakes with very little effort. S you can focus more on Hellspin.
Money can disappear quickly if it’s too loose. There are some mistakes in dealing with money that are easily avoidable. You don’t have to be a stock expert or fund insider to save money. Most of the time, it’s only small sums that quickly add up and end up missing from your wallet. We show you which mistakes you can avoid, but which can give you a significant buffer.
Living beyond your means: Sometimes there are things you want right away, but don’t necessarily need. Taking out a loan for them and getting into debt is a relatively easy mistake to avoid. Often you pay off the loan over years. So think carefully about whether you really need to buy that new car or TV now.
Do not build up reserves: The unexpected can always happen. For example, the washing machine breaks down or the car has to be repaired. Then it is very annoying and lowers your quality of life if you can’t afford the repair. Therefore, create different (money) pots, one of which you only use in an emergency. As a rule of thumb, you should set aside about three months’ salary.
WHAT TO AVOID
Losing track: It may sound old-fashioned and a bit stuffy, but keeping a budget book can save you a lot of money. You can see immediately what income and expenses you have. This makes it much easier for you to keep track of your finances. You can also teach your kids to do something similar with their pocket money.
Pay unused subscriptions: Many subscriptions that start out free become expensive over time and can only be canceled with long notice periods. Even small amounts add up if you have many subscriptions. Therefore, consider whether you really use all subscriptions regularly and cancel the unnecessary ones. This will quickly add money to your household budget.
Unnecessarily consume a lot of electricity: You can save electricity with a little rethinking, changing your habits and using economical appliances. You will notice the difference on your next electricity bill.
Heating the wrong way: With a few tricks, you can not only protect the environment, but also save money.
Unnecessarily consuming a lot of (hot) water: Hot water consumes significantly more energy than cold water and is therefore more expensive.
Do not take advantage of discounts: Especially as a student or senior citizen, you often get a discount in cultural institutions such as operas, museums or theaters. This also applies to cinemas, swimming pools and other public facilities.
Thinking about your retirement provisions too late: It’s best to start thinking about your retirement provisions as early as possible. For many, an ETF savings plan makes sense for private retirement planning.
AFTER YOU SAVED MONEY: WHAT TO DO WITH IT?
Impact investing finances projects that are designed to do demonstrable good and earn money in the process. The idea behind impact investing is that investors invest sustainably and earn money in the process. With this form of investment, financial gain is no longer the sole investment objective, but rather the benefits that society derives from it. In impact investing, for example, investors select projects that promote social justice or advance environmental protection.
Gabler’s Business Dictionary explains that impact investing is a new financial concept. It combines characteristics of a charitable donation with those of a financial investment:
- With a donation, you support a good cause and usually don’t expect any profits.
- With an investment, on the other hand, the focus is on returns.
- Between these two extremes you will find Impact Investing. The new concept aims to combine the positive benefits of donations with financial gains.
THE IMPACT
Impact investing aims to direct financial resources where they are needed to make the world a little more livable. Gabler’s Business Dictionary reports that the 17 Sustainable Development Goals (SDGs) of the United Nations form the basis for impact investing. The UN thus sets global goals in areas such as climate and environmental protection or social justice. Impact investing aims to provide the means to achieve them.
The Global Impact Investing Network (GIIN for short) platform explains how it is supposed to work. Impact Investing collects funds from investors for selected projects. If the project makes a profit, the investors receive their share. At the very least, however, investors should not suffer a loss and should get their money back after a certain period of time. In addition, reports should tell the investor what benefits the project has achieved.
Projects come from the following areas, for example:
- Sustainable agriculture
- Preservation of biodiversity
- Renewable energies
- Education and medical care
- Microcredit: These are loans for people who cannot borrow money from banks, for example small farmers in the global south.
Typical investors are foundations, non-profit organizations or companies that manage large private assets. According to the GIIN, these potential investors and pension funds manage around 500 billion US dollars worldwide. They would like to channel this sum into sustainable projects through impact investing.
